Indian Markets React: Swiggy Dips 3% on Snacc Shutdown, Lenskart Surges 2% Post Motilal Oswal's ₹600 Target, Pace Digitek Jumps on ₹89 Cr Order in February 2026

Indian Markets React: Swiggy Dips 3% on Snacc Shutdown, Lenskart Surges 2% Post Motilal Oswal's ₹600 Target, Pace Digitek Jumps on ₹89 Cr Order in February 2026

The Indian stock market witnessed a dynamic trading session on Friday, February 20, 2026, with key companies experiencing significant movements based on recent corporate developments. While the broader Nifty 50 and Sensex indices saw a tepid opening, continuing a cautious sentiment after Thursday's losses, individual stocks provided distinct narratives. Online food delivery major Swiggy saw its stock dip over 3% on the news of its quick commerce app, Snacc, being shut down. Conversely, eyewear retailer Lenskart Solutions rallied over 2% following positive coverage and a ₹600 target price from Motilal Oswal. Adding to the day's corporate action, Pace Digitek shares surged over 2% after securing an ₹89 crore order from RailTel for IP-based video surveillance in LHB coaches. This FinScann analysis delves into the catalysts behind these movements, their financial implications, and the broader market context for investors in February 2026.

The Catalyst

Swiggy's stock slide on Friday, February 20, 2026, was directly linked to its decision to shut down Snacc, its experimental 10-minute (or 15-minute, as per some sources) food delivery app, barely a year after its launch in January 2025. The internal communication from the Bengaluru-headquartered company cited challenges in making orders profitable and scaling the service as the primary reasons for the closure, despite emerging product-market fit. Swiggy intends to absorb Snacc's employees into other business verticals, and its other quick delivery experiments like Bolt and Toing will continue.

For Lenskart Solutions, the positive momentum stemmed from a new "Buy" rating and an ambitious target price of ₹600 set by leading brokerage Motilal Oswal Financial Services. This initiation of coverage on February 20, 2026, implies a potential upside of approximately 27% from current levels, with Motilal Oswal highlighting Lenskart's vertically integrated model, strong store economics, and accelerating revenue trajectory as key drivers.

Pace Digitek Limited saw its shares jump after announcing on February 19, 2026, that it had received an Advance Letter of Award (LoA) worth ₹890.69 million (approx. ₹89 crore, including GST) from RailTel Corporation of India Limited (RCIL). The significant order is for the supply, installation, and commissioning of IP-based video surveillance systems in LHB coaches, including a three-year warranty and a five-year Comprehensive Annual Maintenance Contract (CAMC). The project is slated for execution within eight months from the date of the Letter of Award.

Financial Forensics

Swiggy's decision to close Snacc reflects a broader industry trend towards fiscal prudence and a focus on sustainable unit economics, especially in the capital-intensive quick commerce sector. While Swiggy reported a 54% surge in revenue to ₹6,148 crore for Q3 FY26, its consolidated net loss widened to ₹1,065 crore (from ₹799 crore year-on-year), indicating significant operational costs associated with rapid delivery formats. The company recently raised ₹10,000 crore via a Qualified Institutional Placement (QIP) in December 2025, underscoring the need for robust financial management. MarketsMojo, as of February 18, 2026, had rated Swiggy Ltd as a "Strong Sell," citing persistent operating losses and weak debt servicing ability, with a -4.47% return over the past year. Swiggy's stock had corrected approximately 50% from its IPO peak of ₹617 to ₹311 due to profitability concerns.

Motilal Oswal's bullish outlook on Lenskart is predicated on robust financial growth, projecting a revenue CAGR of approximately 25% and a pre-Ind AS EBITDA CAGR of around 53% over FY25–28. This growth is expected to be driven by accelerated store additions, volume growth, and improving product margins through backward integration. Lenskart's store-level EBITDA margins are strong at about 33%, with a quick payback period of roughly 10 months. The brokerage anticipates Lenskart will add over 1,400 stores in India during FY25–28, capitalizing on demand in tier-2 and tier-3 cities and the formalization of the eyewear category.

The ₹89 crore order for Pace Digitek from RailTel is a significant boost, contributing to its already substantial order book of ₹3,129 crore. As a telecom infrastructure solution provider, this contract strengthens Pace Digitek's position in the railway sector and provides a recurring revenue stream through the included three-year warranty and five-year Comprehensive Annual Maintenance Contract (CAMC). The execution timeline of eight months indicates a focused deployment strategy.

Market Impact

The broader Indian market, represented by the Nifty 50 and Sensex, opened cautiously on February 20, 2026, following Thursday's significant decline, which saw the Nifty 50 slip below the 25,500 level. Geopolitical tensions and concerns over global oil supplies continue to influence investor sentiment, with the Sensex closing at 82,498.14 (down 1.48%) and the Nifty 50 at 25,454.35 (down 1.41%) on February 19, 2026.

Swiggy's share price dip, while specific to the Snacc shutdown, highlights investor scrutiny on profitability for new-age tech companies. The market is increasingly prioritizing sustainable unit economics over aggressive expansion, especially after recent capital raises. The closure of Snacc, an unprofitable venture, could be viewed as a positive step towards improving overall profitability metrics, even if it causes short-term price volatility.

Lenskart's surge reflects strong investor confidence driven by positive analyst coverage. In a market where valuations are often questioned, a clear growth trajectory, robust unit economics, and a large addressable market in India's underpenetrated eyewear segment provide a compelling investment case. This positive coverage by a reputable brokerage like Motilal Oswal can significantly influence institutional and retail investor sentiment.

Pace Digitek's rise is a testament to the strong government infrastructure push, particularly in the railway sector. Orders from entities like RailTel provide revenue visibility and reaffirm the company's capabilities, making it an attractive proposition for investors looking for stability and growth in the infrastructure space.

Key Takeaways

• Swiggy's Strategic Pivot: The shutdown of Snacc signals Swiggy's move towards a more disciplined approach to profitability, potentially reallocating resources to core food delivery and Instamart.
• Lenskart's Growth Trajectory: Motilal Oswal's ₹600 target price for Lenskart underscores confidence in its vertically integrated model, strong store expansion plans (1,400+ new stores by FY28), and improving margins.
• Pace Digitek's Infrastructure Advantage: The ₹89 crore RailTel order strengthens Pace Digitek's presence in the critical railway infrastructure sector, ensuring long-term revenue visibility through maintenance contracts.
• Market's Profitability Focus: Indian equity markets are increasingly rewarding companies demonstrating clear paths to profitability and sustainable business models, especially within the new-age tech space.
• Sectoral Tailwinds: The eyewear and railway infrastructure sectors are demonstrating strong growth potential in India, offering distinct opportunities for investors.

FinScann Verdict

The divergent stock movements of Swiggy, Lenskart, and Pace Digitek on February 20, 2026, underscore the current market sentiment prioritizing profitability and proven business models. While Swiggy’s rationalization of an unprofitable vertical is a necessary step towards long-term sustainability, Lenskart’s strong growth narrative backed by institutional coverage presents a compelling investment play. Pace Digitek continues to capitalize on India’s infrastructure development, offering stability and growth. FinScann advises investors to carefully evaluate the unit economics and long-term profitability prospects of companies in rapidly evolving sectors.

Q: Why did Swiggy's stock fall after shutting down Snacc? A: Swiggy's stock fell because the closure of Snacc, its 10-minute food delivery app, highlighted the ongoing challenges with profitability in the quick commerce segment, despite the company's stated intent to focus on core profitable ventures. While a strategic move towards efficiency, the immediate market reaction often reflects concerns about past investments and the viability of such experimental models.

Q: What makes Motilal Oswal confident about Lenskart's ₹600 target price? A: Motilal Oswal's confidence in Lenskart's ₹600 target price stems from its vertically integrated business model, strong store-level economics with high EBITDA margins (around 33%), aggressive expansion plans with over 1,400 new stores projected by FY28, and Lenskart's ability to capitalize on India's underpenetrated eyewear market. They expect significant revenue and EBITDA CAGR over the next few years.

Q: What kind of order did Pace Digitek receive from RailTel? A: Pace Digitek received an Advance Letter of Award worth approximately ₹89 crore from RailTel Corporation of India Limited (RCIL) for the supply, installation, and commissioning of IP-based video surveillance systems in LHB coaches. The contract also includes a three-year warranty and a five-year Comprehensive Annual Maintenance Contract (CAMC).

Q: How is the broader Indian stock market performing in February 2026? A: The Indian stock market, as represented by the Nifty 50 and Sensex, has shown a degree of caution in February 2026, with some volatility. On February 19, 2026, both indices closed significantly lower, with the Sensex down 1.48% and the Nifty 50 down 1.41%, influenced by mixed global cues and geopolitical tensions. Analysts suggest a cautious stance, with immediate support levels being watched closely.

Disclaimer: For information only; not investment advice. Stock market investments carry risks. Please consult a SEBI-registered advisor before investing. FinScann assumes no liability for decisions made based on this report.