Swiggy shares fall 5% as Citi sees Eternal food delivery push to cloud outlook
Citi expects Swiggy's net order value (NOV) to increase around 15% quarter-on-quarter in the September quarter, trailing Eternal's projected growth of 22%.
- Oct 22, 2026,
- Updated Oct 22, 2026 11:08 AM IST
Swiggy Ltd shares fell 5% in Thursday's trade after Citi said Eternal Ltd's renewed focus on food delivery (FD segment growth could weigh on the rival's outlook. The foreign brokerage said continued margin expansion in Swiggy's core food-delivery business and potential growth contributions from Toing could cushion the impact, Bloomberg quoted the Citi note as saying.
Following the development, Swiggy Ltd shares fell 4.92% to a session low of Rs 211.50 apiece, compared with the previous close of Rs 222.45. The stock opened at Rs 221 and touched a high of Rs 221 during the session.
Citi said Eternal's commentary pointed to a relative shift towards growth over margins in food delivery, with the company guiding for medium-term growth of 20% year-on-year (YoY). Analysts Vijit Jain and Sanchit Chandna described the development as a "bit adverse" read-through for Swiggy, according to Bloomberg.
However, Citi expects Swiggy's core food-delivery margins to expand in the September quarter. The brokerage said commentary on Toing's contribution to growth would be an important factor to watch as the company reports its quarterly results later on Thursday.
In quick commerce, Citi expects Swiggy's net order value (NOV) to increase around 15% quarter-on-quarter in the September quarter, trailing Eternal's projected growth of 22%. However, the brokerage sees scope for Swiggy's growth to accelerate in the December quarter.
Citi also expects Swiggy's adjusted Ebitda loss in quick commerce to widen to Rs 870 crore from Rs 780 crore in the June quarter. The company's overall adjusted Ebitda loss is projected to increase to Rs 710 crore from Rs 650 crore in the previous quarter, according to the Bloomberg report.
Swiggy Ltd shares fell 5% in Thursday's trade after Citi said Eternal Ltd's renewed focus on food delivery (FD segment growth could weigh on the rival's outlook. The foreign brokerage said continued margin expansion in Swiggy's core food-delivery business and potential growth contributions from Toing could cushion the impact, Bloomberg quoted the Citi note as saying.
Following the development, Swiggy Ltd shares fell 4.92% to a session low of Rs 211.50 apiece, compared with the previous close of Rs 222.45. The stock opened at Rs 221 and touched a high of Rs 221 during the session.
Citi said Eternal's commentary pointed to a relative shift towards growth over margins in food delivery, with the company guiding for medium-term growth of 20% year-on-year (YoY). Analysts Vijit Jain and Sanchit Chandna described the development as a "bit adverse" read-through for Swiggy, according to Bloomberg.
However, Citi expects Swiggy's core food-delivery margins to expand in the September quarter. The brokerage said commentary on Toing's contribution to growth would be an important factor to watch as the company reports its quarterly results later on Thursday.
In quick commerce, Citi expects Swiggy's net order value (NOV) to increase around 15% quarter-on-quarter in the September quarter, trailing Eternal's projected growth of 22%. However, the brokerage sees scope for Swiggy's growth to accelerate in the December quarter.
Citi also expects Swiggy's adjusted Ebitda loss in quick commerce to widen to Rs 870 crore from Rs 780 crore in the June quarter. The company's overall adjusted Ebitda loss is projected to increase to Rs 710 crore from Rs 650 crore in the previous quarter, according to the Bloomberg report.