Swiggy Shares Slip 2% To Hit A New All-Time Low

Shares of Swiggy slipped over 2% in early trading hours today (February 12) to hit an all-time low of INR 326.10 on the BSE as the foodtech giant continued to reel under the effect of weak performance in the December quarter of the fiscal year 2024-25 (Q3 FY25). 

Notably, Swiggy’s shares logged losses for the seventh consecutive session. The stock has tanked over 27% in the last 6 trading sessions, ending in the red at all times.

The stock ended last trading session at INR 333.70 on the BSE, down 8% from the previous close and 19% from its listing price of INR 412.

Swiggy’s consolidated net loss ballooned over 39% to INR 799 Cr in Q3 FY25 from INR 574.4 Cr in the year-ago quarter. Meanwhile, its quick commerce arm Instamart raked in a loss of INR 527.68 Cr, up 70% YoY from INR 310.36 Cr. 

Brokerages expect a sharp deterioration in Instamart’s margin profile due to heightened competition, and higher spending on expansion. 

Despite the rise in its loss, 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. 

In its shareholders’ letter, Swiggy said that the average monthly transacting users (MTU) of Swiggy grew 25.3% YoY to 17.8 Mn. 

Swiggy also undertook several experiments with its quick commerce play during the quarter as it launched its 10-minute food delivery app Snacc in the past few months. The company is now looking to expand into new categories within quick commerce and plans to expand product offerings, said Majety. 

Notably, Swiggy’s operating revenue 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.