Swiggy’s Q4 Loss Surges 95% YoY To INR 1,081 Cr

Foodtech major Swiggy’s consolidated net loss magnified 95% year-on-year (YoY) to INR 1,081.2 Cr in the fourth quarter (Q4) of the financial year 2024-25 (FY25), as quick commerce expansion weighed on the bottom line. On a sequential basis, the company’s loss jumped 35% from INR 799 Cr. 

Operating revenue marked a healthy uptick during the quarter under review. The metric stood at INR 4,410 Cr, up 45% from INR 3,045.6 Cr in the year-ago quarter. On a quarter on quarter (QoQ) basis, the company’s top line expanded 10% from INR 3,993.1 Cr. 

Including other income of INR 120.7 Cr, the company’s total income for the quarter stood at INR 4,530.7 Cr. 

Swiggy’s total expenses stood at INR 5,609.7 Cr, up 53% YoY and 15% QoQ. 

For the full FY25, the company’s net loss zoomed 33% to INR 3,116.8 Cr from INR 2,350.2 Cr in FY24.

Its top line rose 35% to INR 15,226.8 Cr from INR 11,247.4 Cr in the previous fiscal year. 

Instamart Continues To Burden Swiggy’s Bottom Line

For the quarter under review, Swiggy said that its EBITDA loss increased to INR 732 Cr due to significant growth investments in quick commerce.

The quarter saw the highest ever addition of 316 dark stores in Swiggy Instamart’s network. For this expansion, the company deployed capex of INR 425 Cr in the quarter under review, higher than the capex deployed in the other three quarters of the fiscal year. 

Its quick commerce vertical incurred a loss of INR 770.9 Cr in the quarter, marking a 182% YoY jump from the INR 272.7 Cr loss it incurred in the same quarter previous year. Meanwhile, its EBITDA loss stood at INR 840 Cr.

The quick commerce vertical’s operating revenue also saw a healthy 115% YoY jump to INR 689.1 Cr. Sequentially, Instamart’s top line grew 20% from INR 576.5 Cr in Q3 FY25. 

Instamart also saw a rise in its gross order value (GOV) and average order value. While GOV grew 101% YoY to INR 4,670 Cr, AOV increased 13.3% YoY to INR 527. 

Swiggy Instamart’s average monthly transacting users for the quarter zoomed to 98 Lakh, more than double of the 47 Lakh users for the quick commerce vertical in the same quarter last fiscal. 

“Quick commerce is in the midst of a rapid expansion phase, led by growing consumer love and resultant high competitive intensity… Overall, in Q4 we added more darkstores than we added cumulatively over the past 8 quarters, and gained more MTUs than we did in the last 6 quarters combined,” Swiggy CEO Sriharsha Majety said. 

Moving forward, the company expects to curtail Instamart’s losses, as it believes that the vertical reached the “peak of adjusted EBITDA losses” in late Q4.

It said that the pace of the progressive unwinding of the losses will be determined by Swiggy’s expansion of AOV and take-rates, and the nature and quantum of competitive intensity.

Bolt Emerge As Outliers Amid Muted Growth For Food Delivery

Swiggy’s bread-and-butter food delivery business continued to be profitable in the quarter. The vertical brought in an PAT of INR 220.5 Cr, over 4X from the INR 42.5 Cr PAT it raked in the year ago quarter. Sequentially, this marked a 15% growth from INR 192.7 Cr.

The revenue from food deliveries grew 18% YoY to INR 1,629.3 Cr. However, it saw a sequential decline of 0.5% from INR 1,636.9 Cr. 

The company said that it managed to grow its monthly transacting users for food delivery by 17% YoY to 1.5 Cr on the back of its focus on exploring underserved areas and experimenting with newer categories.

“Food delivery is a relatively mature category, and we believe that sustained growth from hereon will be led by innovation towards bringing new consumers into the ecosystem and new meals into Food delivery,” Majety said. 

The company’s quick food delivery offering Bolt accounted for 12% of food delivery orders. At the end of the quarter, Bolt’s restaurant partners exceeded 45,000 across 500+ cities in India.

For its separate quick food delivery app Snacc, Swiggy said it witnessed early consumer traction in the areas it has been test-launched in. With this, the company noted that quick-food delivery has now become mainstream. 

While Swiggy claims to have seen decent growth for its quick food delivery business, its rival Zomato shut its similar service Zomato Quick. The Deepinder Goyal-led company cited poor customer experience and limited incremental demand as the core reasons behind the move.

Swiggy Out Of Home Vertical Turns Profitable

The out of home vertical, which houses the company’s restaurant dining offering DineOut and events business SteppinOut, raked in a profit of INR 2.3 Cr in Q4 FY25 as against a loss of INR 33.8 Cr in the same quarter previous year. 

The profitability came on the back of a healthy uptick in its top line, which rose 23% YoY and 1% QoQ to INR 67.1 Cr. 

The company said that the segment’s GOV grew 41.6% YoY to INR 872 Cr.  Moving forward, the company expects this segment to grow profitability towards a steady state adjusted EBITDA guidance of 4-5% of GOV.

Shares of Swiggy ended today’s trading session 0.19% lower from previous close at INR 314 on the BSE.