Bank of America Securities cuts Swiggy, Zomato estimates on prolonged losses in quickcom, stocks slip

BofA Securities downgrades Swiggy and Zomato due to expected profitability struggles, impacting stock prices and investor decisions.

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Bank of America Securities (BofA Securities) cut investment ratings for Swiggy and Zomato as the profitability of the two quick commerce companies are not expected to improve in the coming year, according to its research note.

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Zomato was downgraded to neutral from buy and Swiggy to underperform from buy as the two companies are expected to lag BofA’s adjusted EBITDA consensus.

Investment ratings are given by stock market researchers to indicate the action that an investor needs to take. Stocks that are cheaper than expected are given buy, and more expensive than expected, sell.

BofA Securities cited underperformance of BofA estimates of adjusted Earnings before Interest, Tax, Depreciation and Amortisation (EBIDTA), a measure of profitability from core operations, rising competition and multiple deratings in the year.

BofA estimated a profit of ₹1,600 crore for fiscal 2026, which is 23% lower than the consensus for Zomato. Swiggy is expected to have a loss of ₹1720 crore, more than the expected ₹1110 crore, according to data in the research report.