Swiggy share price: Shares of Swiggy plunged more than 7% on Friday, July 24, to near its record low as investors reacted to the company’s proposal to cap foreign ownership at 49.5%, a move that could trigger its removal from global equity indices and lead to significant passive fund outflows.
The stock fell as much as 7.2% to an intraday low of ₹242.60 on the BSE, moving closer to its all-time low of ₹235.80, touched on June 30, 2026. Swiggy shares have declined 10% over the past week, 13.5% in three months, 20% in six months and 41% over the past year.
Foreign ownership proposal
In an exchange filing after market hours on Thursday, Swiggy said its Board of Directors had approved a proposal to reduce the company’s maximum foreign ownership limit to 49.5% from the existing 100%. The proposal will now be placed before shareholders for approval through a special resolution at the company’s Annual General Meeting (AGM) scheduled for August 18, 2026.
If shareholders approve the proposal, foreign investors, collectively, will not be allowed to own more than 49.5% of Swiggy, enabling the company to comply with Indian ownership requirements. The proposed ceiling will cover investments held by foreign-owned or foreign-controlled Indian entities, Foreign Portfolio Investors (FPIs) and non-resident Indians (NRIs) through all investment routes and schemes. However, investments made under the non-repatriation route will be excluded from the calculation.
The company also approved amendments to its Articles of Association (AoA), saying the changes form part of a broader effort to qualify as an Indian Owned and Controlled Company (IOCC) under applicable foreign exchange regulations.
Outflows
According to Abhilash Pagaria of Nuvama Alternative & Quantitative Research, the move could leave no foreign ownership headroom, making Swiggy a likely candidate for deletion from global indices that are subject to foreign ownership restrictions.
Swiggy currently carries a 28-basis-point weight in the MSCI Standard Index. Pagaria estimates that exclusion from the index could trigger passive outflows of around $340 million, equivalent to nearly 125 million shares or approximately six days of average trading volume.
The company also has a 24-basis-point weight in the FTSE index. According to Pagaria, that could result in an additional $120 million of passive outflows, equivalent to nearly 46 million shares or around two days of average trading volume.
Annual report
Swiggy’s FY26 annual report suggests the company remains focused on scaling its businesses even as competition in quick commerce intensifies. While Food Delivery continued to strengthen its earnings profile, Instamart remained the primary growth engine during the year.
Food Delivery’s Gross Order Value (GOV) increased 20.2% to ₹34,593 crore, while order volumes rose 13.6% to 714 million. Average monthly transacting users (MTUs) grew 19.2% to 17.5 million, and the average order value increased from ₹458 to ₹484.
Instamart significantly outpaced the food delivery business. Its GOV jumped 94.1% to ₹28,496 crore, while Net Order Value (NOV) climbed 69.9% to ₹20,210 crore. Orders increased 44.4% to 412 million, average order value rose from ₹514 to ₹691, and average MTUs surged 73.7% to 12.3 million.
Despite the rapid expansion, Swiggy acknowledged that quick commerce remains one of the country’s most competitive retail segments. The company reported an improvement in Instamart’s contribution margin to negative 2.8% of GOV from negative 4.0% a year earlier, reflecting better unit economics. However, the business continues to operate at a contribution loss, indicating that achieving sustainable profitability will depend on further operating leverage and disciplined execution.
Swiggy also continued to expand its fulfilment infrastructure during FY26, increasing its active dark-store network to 1,143 from 1,021 a year earlier, taking the total dark-store area to 4.8 million square feet. The company said future network expansion would be more measured after front-loading investments in capacity.
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