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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
22 minutes ago
- Indian Express
Solution to import dependence on vegetable oil does not lie in hiking MSP
India's pulses and vegetable oil imports touched a record 7.3 million tonnes (mt) and 16.4 mt, valued at $5.5 billion and $17.3 billion respectively, in 2024-25. Some of that may have had to do with the strong El Niño-induced drought of 2023-24, whose effects on food inflation extended right up to December 2024. It forced large-scale imports — in the case of pulses, from an average of 2.6 million during 2018-19 to 2022-23 to 4.7 mt and 7.3 mt in the following two fiscals. But the same cannot be said about vegetable oil imports, which have more than doubled from 7.9 mt in 2013-14. It's quite possible that pulses imports will reduce considerably in the current fiscal, assuming a normal monsoon. But that's unlikely with vegetable oils, where rising imports have attained a structural inevitability similar to petroleum crude and natural gas. In pulses, scientists have bred shorter-duration chana (chickpea) and photo-thermo insensitive moong (green gram) varieties, enabling farmers to grow these with minimal irrigation or in all four seasons. Much of the increased domestic pulses production after 2015-16, notwithstanding the setbacks of the last two years, has been courtesy of chana and moong. It has, then, limited the need for imports mainly to arhar (pigeon-pea) and urad (black gram): In a normal year, India can produce roughly 90 per cent of its consumption requirement. Such effort has been woefully lacking in oilseeds. Take soyabean, where the average per-hectare yield in India is hardly one tonne, compared to 2.6 tonnes in Argentina and 3.4-3.5 tonnes in Brazil and the US. Not allowing genetic modification in soyabean or mustard, with potential for raising yields, hasn't helped either. It's not surprising that the import dependence in vegetable oils is well over 60 per cent — and, at the current pace, set to rise further. The solution does not lie in hiking minimum support prices (MSP). MSPs have no meaning unless accompanied by physical procurement as with rice and wheat. But even that has limitations. The latest MSP for soyabean, at Rs 5,328 per quintal or $615 per tonne, is way above the landed cost of $400-450 for the same from Brazil and the US. What the government can do is to assure oilseeds and pulses farmers of a minimum income support, while setting this at a reasonable level that incentivises them to grow and even expand acreages under these crops. But there is no substitute ultimately for increasing yields and reducing cultivation costs — which has unfortunately not happened in oilseeds, unlike with rice, wheat or sugarcane.
Scroll.in
26 minutes ago
- Scroll.in
Prajwal Bhat
Stories written by Can Zohran Mamdani, the first South Asian to run to be New York mayor, pull off an upset? He's got slick campaign videos and a progressive agenda. But can the 33-year-old politician convince voters that he's got what it takes to run the complex city? Prajwal Bhat · 20 minutes ago Firms linked to Keventer group bought electoral bonds worth Rs 600 crore while it faced ED probe This would make the Keventer group the third-largest purchaser of the bonds. Prajwal Bhat , Sachi & Project Electoral Bond · Mar 15, 2024 · 08:21 pm
Hans India
38 minutes ago
- Hans India
AP to halve logistics costs with Rs 20,000 cr infra push
Visakhapatnam: Minister for Roads and Buildings, Infrastructure and Investments BC Janardhan Reddy has underscored that the state is moving forward with a clear vision to emerge as South Asia's logistics gateway. He was speaking at the Ports and Logistics Conference, organised by the Confederation of Indian Industry in Visakhapatnam on Friday. The conference focused on unlocking the state's port potential, improving last-mile connectivity and promoting multimodal logistics integration. The Minister highlighted that Andhra Pradesh's ports now contributed over 5 per cent to the state's GSDP, supporting nearly one million jobs. Visakhapatnam Port alone handled 82.62 million tonnes in FY 2024–25, while the Krishnapatnam and Gangavaram ports together handled over 54 million tonnes, reflecting robust growth and private participation. The Minister observed that the government was investing over Rs.20,000 crore to improve connectivity through 1,040-km of new highways and major corridors like Badvel-Nellore and the VCIC rail line. 'Andhra Pradesh wants to cut logistics costs by half with Rs.20,000 crore infrastructure push,' the Minister underlined. The Chairman of Andhra Pradesh Maritime Board D, Satyanarayana, highlighted that Andhra Pradesh was strategically building a robust port-led development model with six operational ports and three new greenfield ports at Machilipatnam, Ramayapatnam, and Bhavanapadu. He shared that these were not being developed in isolation, but as part of integrated logistics and industrial corridors, fully connected through road, rail, and multimodal networks. The Chairperson of Visakhapatnam Port Authority, M Angamuthu, emphasised that Andhra Pradesh had the right foundations to emerge as a maritime entrepreneurship hub, with its strategic location, proactive governance, and well-established port network. He noted that most major ports in the state were currently operating at just 50 per cent capacity, indicating significant untapped potential. The Chairman of CII, G Murali Krishna, highlighted that ports were no longer just trade enablers but strategic national assets influencing diplomacy, jobs, and regional growth. He shared that Andhra Pradesh's balanced economy and strong policy incentives had already attracted Rs.9.2 lakh crore in investments.
