Swiggy share price dropped 7.4% during Thursday’s trading session following the announcement on Wednesday that the food and grocery delivery giant experienced an increase in its consolidated loss to ₹799.08 crore for the third quarter ending December 2024. In the same period last year, the company recorded a net loss of ₹574.38 crore.
Swiggy share price today opened at ₹387.95 apiece on the BSE, the stock touched an intraday low of ₹387 and an intraday high of ₹410.75 apiece on the BSE. Swiggy share price slipped below its IPO price of ₹390 apiece.
Total expenses rose to ₹4,898.27 crore, up from ₹3,700 crore in the October-December FY24 period. Revenue from operations also grew to ₹3,993.06 crore, compared to ₹3,048.69 crore, according to a regulatory filing. Importantly, Swiggy’s overall Gross Order Value (GOV) saw a 38% year-on-year increase, reaching ₹12,165 crore.
The company’s Food Delivery segment experienced a significant growth of 19.2% year-over-year, reaching revenue of ₹7,436 crore. Additionally, the adjusted EBITDA saw a remarkable increase of 63.7% quarter-over-quarter, totaling ₹184 crore. This performance translated to a margin of 2.5%, a substantial rise from just 0.3% during the same period last year, highlighting the company’s improving profitability in this sector.
Sriharsha Majety, the MD & Group CEO of Swiggy, mentioned that they maintained their emphasis on developing targeted offerings for consumers during the festive quarter, which they believe will lead to increased consumption opportunities. He added that the consistent growth in food delivery margins and cash flow generation is being counterbalanced by the investments in quick-commerce, which includes expanding dark stores and marketing, especially given the intense competition in the near term.
Here’s what brokerage says
Motilal Oswal Financial Services reported that Swiggy generated ₹39.9 billion in 3QFY25 (an 11% increase QoQ), surpassing their projected ₹38.9 billion. The gross order value (GOV) for the food delivery (FD) segment grew by 19.2% year-over-year, and the contribution margin improved by 7.4%, showcasing an 80 basis points QoQ increase. The adjusted EBITDA as a percentage of the GOVERN margin for FD rose by 90 basis points QoQ to 2.5%.
Instamart’s GOV stood at ₹39.0 billion (+88.1% YoY), which fell short of our expectations. The contribution margin declined by 270 basis points QoQ to -4.6%. The adjusted EBITDA as a percentage of GOV was -14.8% (compared to -10.6% in 2Q), which did not meet our forecast of -10.0%. In total, Swiggy recorded a net loss of INR8 billion, representing a 39% increase year-over-year.
“For 4QFY25, we expect revenue/adj. EBITDA loss to increase 7.0%/14.5% QoQ. Our DCF-based valuation of ₹460 ( ₹520 earlier) suggests a 10% potential upside. We reiterate our Neutral rating on the stock,” said Motilal Oswal Financial Services in its report.
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