Swiggy slips 3%, hits new low; stock tanks 49% from December high

Since February 5, 2025, share price of Swiggy is under pressure and fallen 28 per cent after the company reported a weak operational performance in the December 2024 quarter

Food and grocery delivery platform company Swiggy's shares price hit a new low of ₹314.35, falling 3 per cent on the BSE in Thursday’s intraday trade, on expectations of rising losses in the quick commerce business and margins slowdown in the food delivery unit. In the past six trading days, the stock has declined 13 per cent.

 

Today, the stock price of Swiggy has fallen below its previous low of ₹317.15 touched on March 3, 2025. It tanked 49 per cent from its 52-week high level of ₹617 touched on December 23, 2024. Swiggy made its stock market debut on November 13, 2024. Currently, the stock quotes 19 per cent below its issue price of ₹390 per share. 

 

 

According to media reports, Bank of America (BofA) Securities downgraded its ratings on Zomato and Swiggy, citing the profitability of these companies are not expected to improve in the coming year. The brokerage firm has downgraded Zomato from 'Buy' to 'Neutral', and Swiggy to 'Underperform' from 'Buy'.

 

Meanwhile, since February 5, 2025, the share price of Swiggy has been under pressure. It has fallen 28 per cent after the company reported a weak operational performance in the December 2024 (Q3FY25) quarter. 

 

Swiggy reported that its consolidated net loss widened to ₹799 crore for Q3FY25 from a loss of ₹574.3 crore reported during the same period last year. In the preceding quarter, July-September (Q2FY25), the company had reported a net loss of ₹625.50 crore.

 

Despite widening losses, the company's consolidated revenue from operations grew 31 per cent year-on-year (YoY) to ₹3,993 crore, up from ₹3,049 crore in Q3FY24, indicating a strong demand in its core business.

 

Swiggy’s gross order value (GOV) -- the total worth of all orders placed on its platform -- rose 38 per cent Y-o-Y to ₹12,165 crore. The company also reported a 2 per cent Y-o-Y reduction in consolidated adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) loss, which stood at ₹490 crore. However, on a quarter-on-quarter basis, Ebitda loss increased slightly to ₹149 crore, reflecting persistent operational costs.

 

Given the increased cash burn in the quick commerce business, investors have deeply discounted quick commerce valuations citing increasing competitive intensity and high cash burns in the space, analysts at ICICI Securities said in an internet sector report. Despite the lack of visibility on contribution margin improvement in the near-term, analysts think the valuation for quick commerce businesses is compelling for investors with an investment horizon of more than one year.

 

The brokerage firm said they think food delivery is being ignored by investors in the panic over quick commerce. Food delivery has continued to scale profitably over the last 2 years and while there was some slowdown in growth in Q3FY25, analysts said they do not think there is reason to be worried about structural growth drivers in the space.

 

Market share gain in food delivery is encouraging; however, challenging macros continue to weigh on the food delivery business, and management believes growth could slow down for the industry as a whole despite the recent consumption push, Motilal Oswal Financial Services (MOFSL) said in the Q3 result update. The brokerage firm said they do not foresee a meaningful acceleration in the food delivery business in the near-term at the GOV level, as we believe Bolt and 10-minute food delivery could lead to lower Average order value (AOV) growth, too.

 

“We believe food delivery remains a stable duopoly; however, increased competition and aggressive dark store expansion has rebased profitability expectations for the quick commerce sector in the near term,” MOFSL said.