Swiggy shares gained 7% following the expansion of its 'Food on Train' service to 180 cities. The company reported a three-fold increase in orders for the April-June 2026 quarter. Additionally, foreign shareholding has dropped below 50% for the first time, now standing at 49.76%.
Swiggy’s stock price jumped over 7% during Thursday's trading session as the company announced a major expansion of its 'Food on Train' delivery service. The platform now operates in 180 cities across India, allowing rail passengers to order food directly to their seats at designated stations. This expansion comes as the service sees rapid adoption, with order volumes tripling during the April-June 2026 quarter compared to the same period last year.
The company highlighted that its multi-station ordering feature—which allows passengers to schedule meals across different legs of a journey—has become a significant growth driver. These orders grew by more than 300% year-on-year, with passengers on routes like Bhopal-Nagpur frequently utilizing the service for multiple stops. According to Swiggy, the spending from users booking multi-station deliveries is nearly 2.2 times higher than those booking single-stop meals, suggesting that the convenience of advance planning is encouraging higher consumption.
Foreign Ownership Shift and Financial Context
Beyond the operational updates, Swiggy informed the stock exchange on July 6, 2026, that its foreign shareholding has decreased to 49.76%. This shift marks the first time foreign ownership has fallen below the 50% threshold, shifting the majority stake—now 50.24%—to domestic investors. The company stated that this change in shareholder composition does not alter its management, control structure, or business operations.
While the market reacted positively to the expansion news, some analysts remain cautious regarding the company’s long-term financial health. In a July 7, 2026, report, analysts from JM Financial maintained a 'Reduce' rating on the stock. Their assessment highlighted concerns regarding profitability in newer segments such as Instamart and supply chain operations, where they noted limited visibility for a turnaround. The brokerage also expressed caution regarding the company's cash runway, projecting that operational losses may continue to impact the ₹15,000 crore balance sheet. The firm’s valuation for Swiggy considers its core food delivery business at 35x adjusted EBITDA and set a target price of ₹250 for June 2027.
For investors, the key monitorables will be whether the rapid growth in specialized segments like 'Food on Train' can effectively contribute to bottom-line profitability and how the company manages its cash reserves amidst competitive pressures in the quick commerce and food delivery sectors.