Swiggy Shares Recover Losses, Rally 5% Intraday

Shares of foodtech major Swiggy recovered today (February 13) after falling for seven consecutive sessions. 

The stock jumped 5% to INR 358.30 during the intraday trading session on the BSE. 

With a rise in its share price, its market capitalisation reached INR 81,436 Cr with more than 80 Lakh shares traded hands by 11 AM. 

This comes after the stock tanked over 25% in the last eight trading sessions, ending in the red at all times. Swiggy closed the last trading session (February 12) at INR 341.45 apiece on BSE. 

Recently, brokerage firm Citi initiated coverage on Swiggy with a ‘Buy’ rating and set the price target at INR 480 as it sees growth potential in the longer run in both food delivery and quick commerce. 

The PT set by Citi is over 40% higher than the stock’s last (February 12) closing price. 

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

In the third quarter of the current fiscal year (Q3 FY25), Swiggy’s consolidated net loss zoomed over 39% to INR 799 Cr  from INR 574.4 Cr in the year-ago quarter. 

The biggest 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. 

Swiggy Instamart’s contribution margin dropped to -4.6% during the quarter under review from -1.9% in the preceding quarter (Q2FY25). 

However its operating revenue also increased nearly 31% to INR 3,993.1 Cr during the quarter under review from INR 3,048.6 Cr in Q3 FY24. On a quarter-on-quarter (QoQ) basis, it rose 10.9% from INR 3,601.4 Cr.