Swiggy Shares Slump 7% To Hit All-Time Low

Shares of Swiggy slumped 7.33% to hit an all-time low of INR 297 apiece on the BSE today, following the expiry of the six-month lock-in period for non-promoter, pre-IPO investors.

The selling pressure came as pre-IPO investors and other non-promoter shareholders became eligible to offload their holdings in the open market.

At 12:15 PM, the stock recovered part of its intraday losses and was trading 2.64% lower at INR 312 on the BSE. At that time, its market capitalisation stood at INR 77,814.25 Cr, with a trading volume of 6.8 Cr shares.

A JM Financial note said that Swiggy’s stock is likely to remain under pressure in the near term, citing weak Q4 results and the expiry of the pre-IPO lock-in period on May 12.

Swiggy’s consolidated net loss surged 95% year-on-year (YoY) and 35% quarter-on-quarter (QoQ) to INR 1,081.2 Cr in Q4 FY25 as quick commerce expansion weighed on the bottom line. However, its revenue marked a healthy uptick 45% YoY and 10% QoQ to INR 4,410 Cr for the quarter under review.

Despite this, the brokerage firm gave a  BUY rating to the company’s shares with a price target of INR 450 apiece. 

With today’s fresh 52-week low, the stock has now declined 51.86% from its 52-week high of INR 617, recorded on December 23, last year.

The slump in Swiggy’s stock also coincided with broader weakness in benchmark indices like the Sensex and Nifty 50, likely driven by profit booking after a record rally in the previous session.

Notably, the combined market capitalisation of 33 new-age tech stocks tracked by Inc42 surged by over $3 Bn yesterday, amid easing India-Pakistan tensions and a temporary tariff agreement between the US and China.

Swiggy went public on November 13 last year, listing at a premium of over 5% at INR 412 on the BSE.

JM Financial Reflects On Swiggy’s Value Proposition 

The brokerage firm also highlighted that Swiggy’s current market valuation primarily reflects the value of its core food delivery business, while its quick commerce vertical Instamart and other emerging segments are not being fully recognised by the market at present.

As a result, the report suggests that Swiggy’s long-term investors can use these pressures to build a sizeable position in the company.

Looking at the company’s non-core business performances, Instamart has already weighed down the company’s consolidated losses, by reporting a 173.6% YoY increase in adjusted EBITDA loss at INR 840 Cr in Q4 FY25, mainly due to increasing marketing spending and dark store expansion. However, the silver lining in the quarter was that Instamart reported a 115% YoY rise in operating revenue and a 101% YoY increase in gross order value (GOV), while its average order value (AOV) grew 13.3% YoY to INR 527. 

Its other segment, the out-of-home vertical turned profitable in Q4 FY25. Its restaurant dining service DineOut, along with the events platform SteppinOut, reported a combined profit of INR 2.3 Cr in Q4 FY25, compared to a loss of INR 33.8 Cr in the same quarter the previous year.

The company is also planning to further strengthen its core food delivery business by doubling down on its fast food delivery offering, Bolt, which accounted for 12% of total food delivery orders in Q4 FY25. 

This comes in contrast to rival Zomato shutting down its quick delivery services, Zomato Quick and Zomato Everyday, after citing poor customer experience and limited incremental demand. Swiggy has also marked a shift away from operating its food brands by transferring its licences for cloud kitchens like The Bowl Company (TBC), Homely, Soul Rasa, and Istah to Bengaluru-based Kouzina Food Tech. It also recently shut down its hyperlocal delivery service, Genie.