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Hans India
5 days ago
- Business
- Hans India
Swiggy shares plunge 41 pc, trade below IPO price
Mumbai: Swiggy's stock has taken a sharp hit in 2025, falling by 41 per cent, so far, this year and trading below its IPO listing price since February 6. The drop reflects growing investor concerns over widening losses, rising competition, and uncertainty around the company's path to profitability. In the January-March quarter (Q4) of FY25, Swiggy reported a net loss of Rs 1,081 crore, a significant downward slide from Rs 799 crore in the same period last fiscal. This widened quarterly loss came despite an increase in order volumes and rising revenue, as heavy investments in its quick commerce segment continue to weigh on overall performance. The company's annual losses also surged, reaching Rs 3,116 crore in FY25, up 35 per cent from Rs 2,350 crore in FY24, according to its latest regulatory filings. Adjusted EBITDA loss stood at Rs 732 crore for the March quarter, driven by aggressive growth spending in Swiggy's quick commerce business, particularly through Instamart. While Swiggy's revenue rose to Rs 5,609 crore in the March quarter -- up from Rs 3,668 crore a year ago -- analysts remain concerned about the company's ability to control cash burn and turn a profit. Competitors like Zomato, through its Blinkit arm, have ramped up their presence in the quick commerce space, putting additional pressure on Swiggy's margins. Swiggy CEO Sriharsha Majety defended the company's performance, calling FY25 a 'year of many firsts,' highlighting the launch of new apps like Instamart, Snacc, and Pyng. He noted, 'Our food delivery engine delivered best-ever results across innovation and execution, driving category-leading growth and rising profitability in lockstep.' He also said the out-of-home consumption business became profitable in Q4. Despite these positive developments, the market remains sceptical. Swiggy has not regained momentum post-IPO and has spent nearly four months trading below its debut price. Brokerages note that while the core food delivery segment remains stable, the quick commerce division -- though fast-growing -- continues to be the main drag on profitability.
Time of India
12-05-2025
- Business
- Time of India
Swiggy shares in focus after Q4 losses double to Rs 1,081 crore
Swiggy shares will be in focus on Monday after the food delivery platform reported a sharp widening of its net loss for the fourth quarter. Losses nearly doubled to Rs 1,081 crore, compared with Rs 554 crore in the same period last year. However, revenue from operations rose 45% year-on-year to Rs 4,410 crore. The rise in losses was mainly driven by increased spending on Swiggy's quick commerce business, Instamart, amid intensifying competition from Blinkit and Zepto. The company ramped up investments in customer acquisition, dark store expansion, and marketing to defend market share, resulting in higher operating expenses. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like There are holes in her heart! Please help my daughter! Donate For Health Learn More Undo The gross order value (GOV) surged 40% YoY to Rs 12,888 crore in Q4FY25, driven by strong growth across its business verticals. However, the company's consolidated adjusted EBITDA loss widened to Rs 732 crore, due to ramp-up of investments in Instamart. Food delivery business The food delivery business reported a 17.6% YoY growth in GOV, reaching Rs 7,347 crore. Adjusted EBITDA margins for the segment improved to 2.9% of GOV, compared with just 0.5% a year ago. Live Events The growth was supported by innovative offerings, including the premium subscription program One BLCK and faster deliveries through the Bolt service, which now powers 12% of all food delivery orders. Instamart Quick-commerce, which operates under the Instamart brand, continued its rapid expansion, with GOV growing 101% YoY to Rs 4,670 crore. The business added 316 new dark stores, exceeding the cumulative dark stores added over the past eight quarters, and expanded its service footprint to 124 cities. Despite the growth, Instamart's contribution margin declined to -5.6%, compared to -4.6% in the previous quarter, as Swiggy ramped up customer acquisition and network expansion. Adjusted EBITDA loss for Instamart rose to Rs 840 crore, driven by higher operating costs associated with new stores and aggressive market expansion. Out-of-Home Consumption Swiggy's out-of-home consumption segment turned profitable, recording a 42% YoY growth in GOV and achieving an adjusted EBITDA margin of 0.3% of GOV. On the user front, the platform's average monthly transacting users (MTUs) grew 35% YoY to reach 19.8 million, with 35% of users utilising more than one service on the platform. This multi-service usage has been a key driver of customer retention and growth. "FY25 was a year of many firsts for Swiggy, with the launch of new services like Instamart, Snacc, and Pyng," said MD & Group CEO Sriharsha Majety. The company said its focus on scaling Instamart, expanding its out-of-home consumption business, and improving efficiencies in food delivery are expected to remain key growth drivers in the coming quarters. However, the challenge of managing losses in the quick-commerce segment will be a critical area to watch. Swiggy shares price target As per Trendlyne data, the average target price of the stock is Rs 455, which shows an upside of 45% from the current market prices. The consensus recommendation from 21 analysts for the stock is a 'Buy'. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
12-05-2025
- Business
- Economic Times
Swiggy shares in focus after Q4 losses double to Rs 1,081 crore
Swiggy shares will be in focus on Monday after the food delivery platform reported a sharp widening of its net loss for the fourth quarter. Losses nearly doubled to Rs 1,081 crore, compared with Rs 554 crore in the same period last year. However, revenue from operations rose 45% year-on-year to Rs 4,410 crore. ADVERTISEMENT The rise in losses was mainly driven by increased spending on Swiggy's quick commerce business, Instamart, amid intensifying competition from Blinkit and Zepto. The company ramped up investments in customer acquisition, dark store expansion, and marketing to defend market share, resulting in higher operating expenses. The gross order value (GOV) surged 40% YoY to Rs 12,888 crore in Q4FY25, driven by strong growth across its business verticals. However, the company's consolidated adjusted EBITDA loss widened to Rs 732 crore, due to ramp-up of investments in Instamart. The food delivery business reported a 17.6% YoY growth in GOV, reaching Rs 7,347 crore. Adjusted EBITDA margins for the segment improved to 2.9% of GOV, compared with just 0.5% a year growth was supported by innovative offerings, including the premium subscription program One BLCK and faster deliveries through the Bolt service, which now powers 12% of all food delivery orders. ADVERTISEMENT Quick-commerce, which operates under the Instamart brand, continued its rapid expansion, with GOV growing 101% YoY to Rs 4,670 crore. The business added 316 new dark stores, exceeding the cumulative dark stores added over the past eight quarters, and expanded its service footprint to 124 the growth, Instamart's contribution margin declined to -5.6%, compared to -4.6% in the previous quarter, as Swiggy ramped up customer acquisition and network expansion. ADVERTISEMENT Adjusted EBITDA loss for Instamart rose to Rs 840 crore, driven by higher operating costs associated with new stores and aggressive market expansion. ADVERTISEMENT Swiggy's out-of-home consumption segment turned profitable, recording a 42% YoY growth in GOV and achieving an adjusted EBITDA margin of 0.3% of the user front, the platform's average monthly transacting users (MTUs) grew 35% YoY to reach 19.8 million, with 35% of users utilising more than one service on the platform. This multi-service usage has been a key driver of customer retention and growth."FY25 was a year of many firsts for Swiggy, with the launch of new services like Instamart, Snacc, and Pyng," said MD & Group CEO Sriharsha Majety. ADVERTISEMENT The company said its focus on scaling Instamart, expanding its out-of-home consumption business, and improving efficiencies in food delivery are expected to remain key growth drivers in the coming quarters. However, the challenge of managing losses in the quick-commerce segment will be a critical area to watch. As per Trendlyne data, the average target price of the stock is Rs 455, which shows an upside of 45% from the current market prices. The consensus recommendation from 21 analysts for the stock is a 'Buy'. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Entrepreneur
10-05-2025
- Business
- Entrepreneur
Swiggy Q4 FY25 Adjusted EBITDA Loss Increased to INR 840 Crore
The food delivery segment, however, delivered a standout performance, with GOV increasing 17.6 per cent year-on-year to INR 7,347 crore and adjusted EBITDA margins improving to 2.9 per cent of GOV, up from just 0.5 per cent a year earlier. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Swiggy Ltd. reported a surge in overall business activity for the fiscal year ended March 31, 2025, with gross order value (GOV) from its core platform rising nearly 40 per cent year-on-year to INR 12,888 crore. The company's performance was disclosed in a regulatory filing on Friday. While the topline momentum remained robust across verticals, Swiggy's consolidated adjusted EBITDA loss widened to INR 732 crore, driven by significant growth investments in its quick-commerce business, Instamart. The food delivery segment, however, delivered a standout performance, with GOV increasing 17.6 per cent year-on-year to INR 7,347 crore and adjusted EBITDA margins improving to 2.9 per cent of GOV, up from just 0.5 per cent a year earlier. "FY25 was a year of many firsts for Swiggy. We launched multiple new apps across Instamart, Snacc, and recently, Pyng—all aimed at opening up new user segments and markets," said Sriharsha Majety, managing director & Group CEO, Swiggy. "Our food delivery engine delivered best-ever results across innovation and execution, driving category-leading growth and rising profitability in lockstep." Quick-commerce saw the sharpest growth but also the heaviest financial strain. Instamart clocked a 101 per cent year-on-year jump in GOV to INR 4,670 crore in Q4, with average order value rising 13.3 per cent to INR 527. The segment added 316 darkstores during the quarter, more than the combined number added over the previous eight quarters, expanding Swiggy's footprint to 124 cities. As a result, active darkstore area swelled by 62 per cent quarter-on-quarter to 4 million square feet. This aggressive expansion came at a cost. Swiggy reported a higher adjusted EBITDA loss of INR 840 crore in Q4, with contribution margin slipping to -5.6 per cent from -4.6 per cent in the previous quarter due to the high proportion of new stores and first-time users. Swiggy's Out of Home Consumption business turned profitable in Q4, achieving 42 per cent year-on-year growth in GOV and a positive adjusted EBITDA margin of 0.3 per cent. Meanwhile, platform-wide monthly transacting users (MTUs) rose 35 per cent year-on-year to 19.8 million, with 35 per cent of users engaging with more than one service.
Time of India
10-05-2025
- Business
- Time of India
Swiggy's Q4 net loss nearly doubles to Rs 1,081 cr
HighlightsSwiggy's consolidated net loss widened to Rs 1,081.18 crore for the March quarter, compared to a net loss of Rs 554.77 crore in the same period last year. The losses were attributed to significant investments in quick commerce. The company's revenue from operations increased to Rs 4,410 crore during the January-March period, up from Rs 3,045.5 crore a year earlier. Swiggy's average order value for its Instamart service grew by 13.3 percent to Rs 527, and the number of monthly transacting users surged 40 percent quarter-on-quarter to 9.8 million. Food delivery and quick commerce platform Swiggy on Friday reported widening of consolidated net loss during the March quarter to Rs 1,081.18 crore, due to significant investments in quick commerce. The company had reported a net loss of Rs 554.77 crore on a consolidated basis in the year-ago period. Swiggy's revenue from operations rose to Rs 4,410 crore during the January-March period, as against Rs 3,045.5 crore a year earlier, a regulatory filing showed. However, its total expenses shot up to Rs 5,609.6 crore during the quarter under review, as against Rs 3,668 crore in the corresponding period of the previous year. In a statement, Swiggy said the gross order value (GOV) of its food delivery business continues to grow in line with guidance at a healthy 17.6 per cent year-on-year, to Rs 7,347 crore. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 15.4 per cent quarter-on-quarter and over five times year-on-year to Rs 212 crore, and strong efficiency and execution drove a margin expansion to 2.9 per cent of GOV, up from 0.5 per cent a year ago. Swiggy Instamart average order value increased 13.3 per cent to Rs 527 during the quarter. Instamart added 316 new dark stores -- an increase of 45 per cent sequentially -- its highest-ever during a quarter. Investments into customer acquisition amidst high competitive intensity saw monthly transacting users (MTUs) surge 40 per cent quarter-on-quarter to 9.8 million, the company said. Swiggy MD & Group CEO Sriharsha Majety said, "Quick-commerce is in a phase of rapid expansion and heightened competitive intensity, for which we have ramped up investments aimed at market expansion (Megapods), reach (1,000+ stores across 124 cities) and differentiation (Maxxsaver). Our Out of Home Consumption business turned profitable in Q4, within just 2 years of its integration. Overall, we remain focused on growth, on the back of delivering unparalleled convenience to consumers."
