Swiggy shares slip 4% on posting Q1 results; Is it buying opportunity?

Swiggy share price slipped 4.3 per cent on Friday, logging an intra-day low at ₹386.25 per share on BSE; what should investors do?

Swiggy shares slipped 4.3 per cent on Friday, logging an intra-day low at ₹386.25 per share on BSE. The selling pressure on the counter came after the company posted its Q1 numbers on Thursday, after market hours.  

 

At 9:55 AM, Swiggy shares were trading 3.16 per cent lower at ₹391.05 per share. In comparison, BSE Sensex was down 0.2 per cent at 81,025.19.   READ STOCK MARKET LATEST UPDATES LIVE

Swiggy Q1 results 2025

In Q1, the food delivery aggregator Swiggy posted a consolidated net loss of ₹1,197 crore, nearly doubling from a loss of ₹611 crore a year ago. Losses also rose sequentially from ₹1,081 crore in Q4FY25. The widening loss was attributed to a sharp 60 per cent increase in total expenses, which climbed to ₹6,244 crore during the quarter.

 

This came despite a significant 52 per cent year-on-year (Y-o-Y) rise in revenue from operations, which reached ₹5,048 crore, up from ₹3,310 crore a year earlier. Sequentially, revenue rose 11.4 per cent from ₹4,531 crore.

 

Swiggy’s quick commerce arm Instamart recorded a Gross Order Value (GOV) of ₹5,655 crore in Q1, a YoY growth of 108 per cent and 21.1 per cent sequentially. The platform added 41 darkstores during the quarter, taking its total network to 1,062 darkstores across 127 cities, covering 4.3 million sq ft.

 

Swiggy Q1 results analysis: Motilal Oswal | Neutral | target raised to ₹450 from ₹350 

The brokerage sees execution improving notably, with the improvement in quick commerce average order value being an encouraging sign. However, Motilal Oswal remains on the sidelines due to continued heightened competition in the sector.   ALSO READ | TeamLease shares soar 14% post Q1 result; will the rally sustain?

Swiggy Q1FY26 results review: Nuvama Institutional Equities 

Swiggy continues to deliver higher growth in food delivery than Zomato, the brokerage noted. Further, food delivery profitability was impacted, but management remains confident of improving it during the year. However, unlike Eternal, Swiggy’s management continues to see elevated competitive intensity in quick commerce as both incumbents and new players vie for customers. Swiggy is not rated at Nuvama. 

 

Besides, Morgan Stanley has raised its target price to ₹445 per share from ₹450 as growth in food delivery is believed to be living up to expectations. However, it sees a slower pace of margin improvement.