Swiggy Shares Slump 8%, Down 12% In 7 Trading Sessions

Swiggy Shares Drop 5% During Morning Trade

SUMMARY

Shares of Swiggy nosedived more than 8% in morning trading to hit the day’s low at INR 335.40 apiece on the BSE on Friday (February 14)

Swiggy reported a 39% YoY increase in its consolidated net loss to INR 799 Cr in Q3 FY25 while operating revenue jumped 31% YoY to INR 3,993.1 Cr

Brokerage Citi said Swiggy Instamart lags behind Blinkit and Zepto in the quick commerce segment in terms of market share

Shares of foodtech giant Swiggy nosedived more than 8% in morning trading to hit the day’s low at INR 335.40 apiece on the BSE on Friday (February 14).

With this, the stock has declined over 12% since the foodtech major reported weaker-than-expected earnings in the December quarter of the current fiscal year.

At 10:51 AM, the stock was trading at INR 336.90 on the BSE, down 7.80% from the previous close and 45% lower than its 52-week high.

The stock has ended in the red in 7 of the last 11 trading sessions.

On February 5, Swiggy reported a 39.1% increase in its consolidated net loss to INR 799 Cr in the third quarter of the ongoing financial year (Q3 FY25) from INR 574.4 Cr in the year-ago quarter.

However, operating revenue zoomed nearly 31% to INR 3,993.1 Cr during the quarter under review from INR 3,048.6 Cr in Q3 FY24.

In a recent research note, brokerage Citi highlighted that Swiggy Instamart is behind in the quick commerce race as rivals Blinkit and IPO-bound Zepto have cornered a higher market share.

According to the brokerage, Blinkit leads the quick commerce race with a 41% market share, while Instamart is likely at the third spot, behind Zepto, with an estimated 23% share in India’s burgeoning quick commerce market.

Citing industry reports and data traffic trends, analysts at Citi said Zepto’s market share might be “par/higher” than Swiggy, though they did not give an exact number for the IPO-bound quick commerce unicorn.

Swiggy’s quick commerce arm Instmart saw its loss widen 70% to INR 527.68 Cr in Q3 FY25 from INR 310.36 Cr in the year-ago quarter on account of continued investments towards dark store expansion across geographies.

However, Instamart’s revenue jumped 114% year-on-year and 17% quarter-on-quarter to INR 576.50 Cr in the October-December quarter. Its gross order value (GOV) zoomed 88% YoY to INR 3,907 Cr.

Amid a slowdown in the food delivery segment and rising competition in the quick commerce segment, Zomato also saw its consolidated net loss decline 57% to INR 57 Cr in Q3 FY25 from INR 138 Cr in the year-ago quarter.

Its quick commerce Blinkit saw its adjusted EBITDA loss zoom almost 13X to INR 103 Cr in the December quarter from INR 8 Cr in the September quarter.