Quick-commerce margins and execution are key to gains in Swiggy stock

Management indicated that the quick commerce segment saw peak losses in Q4 and there will be progressive improvement

Even as Swiggy reported a satisfactory revenue growth, the Q4 losses were higher than consensus due to the quick commerce (qcom) business.

 

Food delivery gross merchandise value (GMV) grew at 17.6 per cent year-on-year (Y-o-Y) and operating profit was at ₹210 crore, above consensus.

 

Quick commerce GMV doubled Y-o-Y, led by higher monthly transacting users (MTUs), but margins dipped and Q4’s adjusted operating loss for qcom was ₹840 crore (-18 per cent margin on gross order value or GOV).

 

The management indicated that the qcom segment saw peak losses in Q4 and there will be progressive improvement.  Competition has not