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Swiggy’s revenue went up by 31% on a year-on-year basis to ₹3,993 crore from ₹3,049 crore last year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was at a negative ₹725 crore, which was also wider than the loss of ₹525 crore last year.
Revenue for the Food delivery business grew by 23.5% from last year, while its EBIT stood at ₹193 crore from ₹26 crore last year.Swiggy’s Quick Commerce business Instamart saw revenue more than double from last year. However, its EBIT loss widened to ₹528 crore from a loss of ₹310 crore last year.
The stock has been under pressure since January 21, which is when its other listed rival Zomato Ltd. reported its December quarter results.Zomato had flagged off a slowdown in the food delivery business and also mentioned that its Quick-Commerce Vertical “Blinkit”, will remain loss-making for the near-term as it accelerates its investments in expanding its dark store network.
Shares of Swiggy, which were already in correction mode from their post-listing highs, fell further post Zomato’s results. On January 28, the stock fell below its IPO price of ₹390, making a low of ₹389.
Kotak Institutional Equities had initiated coverage on Swiggy on Monday with a “buy” rating and a price target of ₹500.
The brokerage said that Swiggy’s food delivery margin will improve and that will drive an Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) Compounded Annual Growth Rate (CAGR) of 62% over financial year 2025-2028 for the segment.
However, it said that Quick Commerce will entail investments to support infrastructure growth and customer acquisition.
Out of the 16 analysts who have coverage on Swiggy, 11 of them have a “buy” rating, two say “hold”, while three have a “sell” rating on the stock. Shares of Swiggy ended 3.6% lower at ₹418.6 ahead of its results announcement.
First Published: Feb 5, 2025 10:42 am IS
