Swiggy continues to draw sustained interest from major institutional investors, with both Foreign Institutional Investors and mutual funds demonstrating consistent confidence through increased stake acquisitions. This institutional backing comes despite the stock's recent underperformance, creating an interesting dynamic between long-term investor confidence and short-term market sentiment.

Institutional Investment Trends

The latest shareholding data for the December 2025 quarter reveals continued institutional accumulation in Swiggy. The following table shows the progression of institutional holdings:

Notably, mutual funds have never reduced their stake in Swiggy since its listing in November 2024, signaling sustained long-term confidence in the company's prospects. This consistent institutional buying pattern often reflects thorough due diligence and conviction in the underlying business fundamentals.

Stock Performance and Market Position

Despite strong institutional interest, Swiggy's stock performance has faced headwinds over the past year. The stock has declined approximately 30.00% and currently trades at ₹344.00, below its IPO price of ₹390.00. As of Monday at 1:05 pm, the stock was down 2.20% at ₹343.85, with a market capitalization of approximately ₹94,885.00 crore.

This disconnect between institutional confidence and market performance highlights the contrast between short-term trading dynamics and long-term investment perspectives.

Analyst Coverage and Technical Indicators

According to Trendlyne forecaster data, 25 analysts maintain a consensus 'BUY' rating on Swiggy, with target prices implying a 42.00% upside from current levels. This analyst optimism aligns with the sustained institutional investment trends.

From a technical analysis perspective, the stock presents mixed signals:

The RSI reading below 30.00 typically indicates oversold conditions, potentially signaling excessive selling pressure that could lead to a rebound. However, the stock trading below all major moving averages suggests continued downward momentum in the near term.

Financial Performance Overview

While December 2025 quarterly results remain pending, the September 2025 quarter provides insight into Swiggy's operational performance:

The strong revenue growth of 52.50% demonstrates robust top-line momentum, though the widening net loss reflects continued heavy investments in operations and expansion activities.

Investment Considerations

The sustained institutional investment in Swiggy, particularly the five consecutive quarters of mutual fund stake increases, suggests professional investors maintain confidence in the company's long-term prospects. This institutional backing, combined with strong revenue growth and analyst optimism, presents a complex investment picture against the backdrop of recent stock underperformance and technical headwinds.

Swiggy is aggressively expanding its private label brand Noice beyond traditional staples, testing the boundaries of private label strategies in India's competitive quick commerce market. The expansion represents a significant shift from the typical approach of limiting private labels to everyday grocery categories.

Rapid Scale-Up of Noice Brand

The push has dramatically expanded Noice's range and supplier base since August. According to company operations sources, the private label has grown substantially across multiple metrics:

What began as a small-batch, premium range centered on Indian snacks, sweets, cookies and baked items sourced from small kitchens has widened sharply in recent months. Recent additions include:

• Beverages
• Ready-to-cook items
• Dairy products
• Fresh items like eggs, dosa batter and paneer

Strategic Talent Acquisition

Swiggy has been adding senior talent to support the Noice expansion. The company hired Royan Mody, the former director for private labels at Flipkart, to lead Noice at Swiggy Instamart. Additionally, Mayur Hola, who previously led global brand roles at OYO, joined as vice-president, brand, with a mandate spanning Swiggy's businesses including Instamart.

Financial Performance and Margin Dynamics

Quick-commerce platforms continue struggling with profitability despite category scaling. Swiggy's Instamart financial performance shows mixed results:

Competitor performance varies significantly. At Zomato-owned Blinkit, adjusted EBITDA loss narrowed sequentially to ₹156.00 crore in Q2 FY26 from ₹162.00 crore in the previous quarter. Meanwhile, Zepto doubled sales in FY25 to ₹9,668.80 crore, but net loss widened by 177% to ₹3,367.30 crore.

Private labels offer compelling margin advantages. Industry estimates suggest quick commerce firms earn 10-15% net margins with third-party brands, while private labels can deliver 35-40% gross margins even after sharing portions with manufacturers.

Market Position and Competitive Risks

Industry estimates indicate private labels now account for roughly 20-25% of sales in staples such as grains and rice across quick-commerce platforms including Zepto, BigBasket, Blinkit, and Swiggy. However, Swiggy's approach of pushing Noice beyond typical staples carries execution and competitive risks.

The strategy raises concerns about friction with brand partners if platform-owned labels receive disproportionate visibility. For new brands, quick commerce typically contributes about 2-3% of sales, while for brands with ₹10,000.00 crore annual sales, this represents ₹200.00-300.00 crore worth of sales.

Consumer response data suggests challenges with private label prioritization. A rival platform's product manager reported higher checkout drop-offs when attempting to promote private labels in staples through search rankings, particularly when users specifically sought known brands like Aashirvaad and Parry's Sugar.

Strategic Implications

Analysts compare Noice's approach to Amazon's Solimo-style playbook, where product selection is guided by internal platform data on sales patterns. The model allows platforms to enter categories after sellers have built demand and consumer awareness, but creates competitive tensions.

While the model may not be profitable yet, it is scaling faster than many e-commerce private-label programs. The expansion reflects how quick commerce platforms are leveraging private labels and advertising income from brand partners to improve margins, with Swiggy appearing to lean harder on the private-label strategy to differentiate Instamart and lift unit economics.