Swiggy Shares Drop 5% During Morning Trade

SUMMARY

The stock later recouped some losses and was trading 2.46% lower at INR 364.45 per share at 10:40 AM

With a drop in its share price, Swiggy’s market capitalisation stood at INR 82,534 Cr with more than 62 Lakh shares traded hands by the time of writing

At the same time, its rival Zomato was trading 1% low at INR 231.50 apiece on the BSE

Shares of foodtech major Swiggy dropped over 5% to INR 354.00 during the intraday trading session on the BSE today (February 21).

The stock later recouped some losses and was trading 2.46% lower at INR 364.45 per share at 10:40 AM.

With a drop in its share price, Swiggy’s market capitalisation stood at INR 82,534 Cr with more than 62 Lakh shares traded hands by the time of writing.

At the same time, its rival Zomato was trading nearly 1% low at INR 231.50 apiece on the BSE.

Swiggy announced its Q3 results two weeks ago and since then, the startup’s share price has declined, even reaching a 52-week low.

However, the stock’s price recovered briefly by jumping 7% on Wednesday (February 19), but it dropped again, closing the previous trading session in red.

The Bengaluru-based foodtech giant reported an increase in its consolidated net loss by 39% to INR 799 Cr in the third quarter of the current fiscal year (Q3 FY25) from INR 574.4 Cr in the year-ago quarter.

On a quarter on quarter (QoQ) basis, Swiggy’s loss increased 27.7% in Q3 FY25 from INR 625.5 Cr.

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

In a brokerage note, Citi said that Zomato-owned Blinkit and Zepto have captured a larger market share in the rapid delivery space, leaving behind Swiggy Instamart.

Zomato’s market share is estimated at 41%, while Zepto is projected ‘par/higher than Swiggy’, based on data traffic trends.

However, in the quarter under consideration, Swiggy’s revenue from operations also zoomed nearly 31% to INR 3,993.1 Cr during the quarter under review from INR 3,048.6 Cr in Q3 FY24.

Sequentially, it rose 10.9% from INR 3,601.4 Cr.

Swiggy closed the trading session 3.47% lower at INR 360.70 on the BSE today.