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Swiggy’s share price fell by more than 4% on February 5, ahead of its quarterly earnings announcement later in the day
Swiggy Shares Fall
Swiggy Share Price: Swiggy’s share price fell by more than 4% on February 5, ahead of its quarterly earnings announcement later in the day. The company is set to release its third-quarter results for the current fiscal after market hours.
Swiggy’s stock dropped 4.35% to an intraday low of Rs 415.15 per share on the NSE.
The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. On February 4, the delivery volume of 34.76 lakh shares rose by 13.03% compared to the 5-day average.
For Q1FY25, Swiggy posted a revenue of Rs 3,222.2 crore with losses of Rs 611 crore. In comparison, its competitor Zomato reported a revenue of Rs 4,799 crore and a profit after tax of Rs 272 crore for the September quarter.
For the July-September quarter, Swiggy reported a revenue of Rs 3,601.5 crore, marking a 30% increase from Rs 2,763.3 crore during the same period last year. This growth was driven by a rise in transacting users. The company also reduced its losses by 5%, from Rs 657 crore to Rs 625.5 crore.
Swiggy Q3 FY25 Results Preview
Swiggy is expected to see a sequential increase in revenue during Q3 FY25, although its losses are projected to widen.
According to JM Financial, Swiggy’s net loss for the December quarter could rise to Rs 707.8 crore, an increase of 13.5% from the Rs 623.4 crore loss in Q2 FY25. The brokerage firm expects a 12% quarter-on-quarter (QoQ) rise in revenue, reaching Rs 4,034.7 crore from Rs 3,601.5 crore.
In food delivery, JM Financial forecasts a 3.5% sequential growth in Gross Order Value (GOV) with take rates expanding to 22.3%. For Instamart, GOV growth is expected to be 18.2%, driven by a 13% increase in order volumes.
Motilal Oswal (MOSL) estimates a 20% YoY growth in food delivery GOV and a 100% YoY growth in quick commerce, with overall revenue increasing by 8% QoQ in Q3 FY25. They expect Instamart to grow 19% QoQ, while food delivery’s adjusted EBITDA as a percentage of GOV is forecast to improve by 20 bps QoQ.
MOSL also predicts the company’s net loss will widen to Rs 700 crore from Rs 620.5 crore in Q2, with revenue rising to Rs 4,201.8 crore from Rs 3,891 crore.
Should You Buy Swiggy Shares Ahead of Q3 Results?
JM Financial maintains a ‘Buy’ rating on Swiggy with a target price of Rs 550, while Motilal Oswal has a ‘Neutral’ stance, setting a target of Rs 520.
From a technical perspective, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, advises caution ahead of the Q3 results. He noted that Swiggy’s stock surged from Rs 400 to Rs 600 but recently dropped back to Rs 400, signaling weakness. Any negative surprise could lead to further declines, with a potential drop toward Rs 335 if the Rs 400 level is broken.
Investors should remain cautious, as high volatility and fragile sentiment may continue in the near term.