Swiggy Shares Hit 52-Week Low After Q3 Results

Swiggy’s shares plunged as much as 7.43% today, hitting a fresh 52-week low of INR 387.00 on the BSE today (February 6), following the company’s report of a widened net loss of INR 799 Cr for the December quarter, up from INR 574 Cr a year ago.

The stock opened with a sharp 7.43% gap down but later pared some losses, trading 3.85% lower at INR 402 at 10:25 AM.

At this price, Swiggy’s market capitalisation stood at INR 91,038.56 Cr, while trading volume remained low at just 2.33 Cr.

Following the Q3 results, brokerage firms offered mixed views on the stock. UBS retained its “buy” rating with a target price of INR 515, while Macquarie reiterated its “underperform” stance, setting a PT of INR 325.

Swiggy’s consolidated net loss surged 39.1% YoY to INR 799 Cr in Q3 FY25 from INR 574.4 Cr in the same quarter last year. Sequentially, the loss widened by 27.7% from INR 625.5 Cr in the previous quarter.

Operating revenue, however, climbed nearly 31% YoY to INR 3,993.1 Cr, up from INR 3,048.6 Cr in Q3 FY24. On a quarter-on-quarter (QoQ) basis, revenue rose 10.9% from INR 3,601.4 Cr.

Despite the widening losses, the company highlighted robust year-on-year (YoY) growth across its three B2C verticals—food delivery, Instamart, and out-of-home consumption. In a letter to shareholders, Swiggy stated that its average monthly transacting users (MTU) grew 25.3% YoY to 17.8 Mn.

The latest 52-week low represents a 37.27% decline from the stock’s peak on December 23, 2024.

With today’s dip, Swiggy’s stock has slipped below its IPO issue price of INR 390, marking a 6.06% decline from its BSE listing price of INR 412.

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

The publicly listed company’s market capitalisation of 88,071.88 Cr stood in sharp contrast with its counterpart Zomato’s market capitalisation at INR 2,21,041.28 Cr at the end of the day. 

Swiggy’s third quarter result was a tale of two halves, with solid progress on the food delivery FD front but a headwind on quick commerce QC execution. 

Brokerage firm Macquarie noted, “Swiggy expanded its dark-store network by 16% QoQ (705 stores, footprint +26% QoQ driven by addition of larger stores), aiding GOVg of 16% QoQ (vs 27% Blinkit). However, this network expansion, alongside heightened competitive intensity resulted in contribution margin losses increasing to 4.6% of GOV, while on an adjusted EBITDA margin basis losses widened to an alarming 15% of GOV (vs Blinkit at -1.3%).”

However, Swiggy maintained its guidance of contribution margin breakeven in Instamart by Q3 FY26.

Swiggy Instamart added 96 new dark stores in Q3 FY25, taking the total number of active dark stores to 705. In comparison, competitor and market leader Blinkit added 216 dark stores in the December quarter, taking its store count to 1,007.

In terms of GOV, Zomato’s Q3 FY25 GOV growth of 27% QoQ and 120% YoY in quick commerce was substantially higher than Swiggy’s at 16% QoQ and 88% YoY. Although for food delivery, GOV grew 3% QoQ and 19% YoY which was better than Zomato’s 2% QoQ and 17% YoY.

“Zomato was able to grow faster while maintaining a higher cost discipline vs competitors; Swiggy’s QoQ advertising/marketing spend increase in 3Q was more than 2x that of Zomato’s increase,” brokerage firm Goldman Sachs noted.