Swiggy Hits Fresh 52 Week Low At INR 359 After Q3 Loss Widens 39%

Swiggy shares crashed almost 6% to INR 359.00, hitting a fresh 52 week low on the BSE today (February 10), a few days after the company reported a 39.1% rise in its consolidated net loss in Q3 of FY25. 

At the current price, the company’s market capitalisation declined to INR 82,795 Cr with more than 1.5 Cr shares exchanging hands by 11:32 AM. 

The foodtech giant’s financial result for the December quarter also led to some brokerages slashing their targets. Brokerage firm Bernstein cut its target price for Swiggy to INR 575 from INR 635. 

While the company’s net loss increased, its operating revenue also zoomed nearly 31% to INR 3,993.1 Cr during the quarter ended in December 2024 from INR 3,048.6 Cr a year back. On a quarter-on-quarter (QoQ) basis, it rose 10.9% from INR 3,601.4 Cr.

Despite widening losses, the company said that it recorded a higher year-on-year (YoY) growth across all three of its B2C verticals – food delivery, Instamart and out-of-home consumption. 

Swiggy entered the market on November 13, 2024, listing at INR 420 on the NSE, clocking a premium of nearly 8% over its IPO price of INR 390. On the BSE, it opened at INR 412, reflecting a 6% premium.

The major contributor to Swiggy’s net loss this quarter was its quick commerce arm, Instamart. In Q3 FY25, the company’s quick commerce arm raked in a loss of INR 527.68 Cr, up 70% YoY from INR 310.36 Cr. 

The rising competition in the quick commerce segment shrank the margins of Swiggy Instamart in Q3 FY25 as the company stepped up investments to fend off the rivals. Instamart’s contribution margin dropped to -4.6% during the quarter under review from -1.9% in Q2 FY25.