Swiggy’s Stock Tumbles 7.4% as Q3 Losses Widen Despite Revenue Growth
Swiggy’s share price dropped 7.4% during Thursday’s trading session after the company reported an increase in its consolidated net loss for the third quarter of FY25. The food and grocery delivery giant recorded a net loss of ₹799.08 crore for the October-December period, widening from ₹574.38 crore in the same quarter last year. The company’s stock opened at ₹387.95 per share on the BSE, reaching an intraday low of ₹387 and a high of ₹410.75 before slipping below its IPO price of ₹390 apiece.
Total expenses surged to ₹4,898.27 crore, compared to ₹3,700 crore in the corresponding quarter of FY24. Meanwhile, revenue from operations increased to ₹3,993.06 crore from ₹3,048.69 crore in the previous year. Despite the growing revenue, the company’s widening losses impacted investor sentiment, leading to the stock decline.
Food Delivery Growth and EBITDA Improvement
Swiggy’s food delivery segment reported a 19.2% year-over-year growth, reaching revenue of ₹7,436 crore. The adjusted EBITDA increased by 63.7% quarter-over-quarter to ₹184 crore, leading to a margin improvement from 0.3% in the same period last year to 2.5% in the recent quarter. The company’s overall Gross Order Value (GOV) surged by 38% year-on-year to ₹12,165 crore, reflecting continued demand for its services.
Sriharsha Majety, Swiggy’s MD & Group CEO, emphasized the company’s focus on targeted consumer offerings during the festive quarter. He noted that while food delivery margins and cash flow generation have improved, significant investments in quick-commerce operations, including dark stores expansion and marketing, are impacting profitability amid heightened competition.
Instamart’s Performance and Broader Financial Metrics
Instamart which is part of Swiggy’s quick-commerce segment recorded 88.1% growth during the year to reach ₹39.0 billion. The quick-commerce segment revealed a 270 basis points decrease in contribution margin amounting to -4.6% during this quarter. The adjusted EBITDA ratio against GOV was recorded at -14.8% which failed to match analyst projections.
Operating loss before interest, tax, depreciation and amortization reached ₹725.66 crore which presented a rise from ₹554.17 crore reported in the prior quarter. Consolidated adjusted EBITDA loss diminished by 2% during a year-over-year period to settle at ₹490 crore. On a sequential basis EBITDA loss showed a minor increase of ₹149 crore.
