Shares of food delivery major Swiggy fell as much as 7% on May 11, heading for their worst session in more than a month, as slowing growth in its quick-commerce business and intensifying competition overshadowed a narrower fourth-quarter loss.

The stock was on track for its biggest intraday percentage drop since April 2. At 10:20 am on May 11, Swiggy shares were trading 4% lower at Rs 268.8 apiece while shares of its rival Eternal were trading 2.7% lower at Rs 249.42 apiece. The fall in these shares also comes on the back of rise in crude oil prices.

Oil prices rallied on Monday, a day after President Donald Trump said Iran's response to a U.S. proposal was "unacceptable," raising supply fears as the Strait of Hormuz stayed largely closed, which kept the global market tight.

Brent crude futures climbed $4.16 or 4.11% to $105.45 a barrel at 0340 GMT. U.S. West Texas Intermediate was at $99.80 a barrel, up $4.38, or 4.59%.

Last week, both contracts recorded 6% weekly losses on hopes for an imminent end to the 10-week-old conflict that would allow oil transit through the Strait of Hormuz.

Investor concerns centred on Swiggy losing quick-commerce market share to rival Eternal's Blinkit, while competition from players such as Zepto, Amazon and Walmart-backed Flipkart remains intense, analysts said, reported Reuters.

On Friday, Swiggy reported a consolidated loss of Rs 800 crore for the three months ended March 31, compared with Rs 1,065 crore in the previous quarter.

JPMorgan said growth at Swiggy's quick commerce arm Instamart lagged peers, with gross order value rising 68.8%, well below Blinkit's 95.4% increase, suggesting continued market-share losses.

Morgan Stanley said while Swiggy's food delivery business recorded its strongest growth in years and margins improved, investor focus remains on execution and profitability in quick commerce amid aggressive competition.

Food delivery is "defying scepticism around a sector slowdown, with meaningfully better margins than a year ago," CEO Sriharsha Majety said, citing how the segment has crossed Rs 1,000 crore in annual adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

Gross order value in food delivery, a key industry metric reflecting the total value of app orders and subscription fees, rose about 23% to Rs 9,005 crore.

Quick commerce arm Instamart posted a 68.8% jump in gross order value to Rs 7,881 crore, with contribution margin-revenue remaining after variable costs- improving 65 basis points sequentially to negative 1.8%.

"By actively pivoting away from unprofitable low average order value (AOV) consumers and related orders, we have significantly changed the order mix by halving their share during this period," the company said.