Swiggy Q3 FY25 Results: Net Loss Widens to ₹800 Crore, Revenue Jumps 31% YoY
Introduction
Swiggy, one of India’s leading food delivery and quick-commerce platforms, has reported its financial results for Q3 FY25 (October-December 2024). While the company saw a robust 31% year-on-year (YoY) growth in revenue, its net loss widened to ₹800 crore during the quarter. The company’s Gross Order Value (GOV) for its food delivery business surged by 19.2% YoY to ₹7,436 crore, indicating strong consumer demand despite mounting losses.
Swiggy’s Performance in Q3 FY25
It has been aggressively expanding its operations across various segments, including food delivery, quick commerce, and premium-tier offerings. The company’s CEO, Sriharsha Majety, remains optimistic about the long-term growth potential despite short-term challenges.
Key Highlights from the Q3 Results:
- Net loss: ₹800 crore (higher than the previous quarter)
- Revenue growth: 31% YoY
- Food Delivery GOV: ₹7,436 crore (+19.2% YoY)
- Adjusted EBITDA: ₹184 crore (+63.7% QoQ)
- Food delivery margin: Improved to 2.5% from 0.3% a year ago
- Instamart Monthly Transacting Users (MTUs): 9 million, up by 2 million
- Quick commerce expansion: Added 86 new dark stores in January 2025
CEO’s Vision: Growth Through Innovation
Commenting on the results, Sriharsha Majety, MD & Group CEO of the company, highlighted the company’s focus on innovation and expanding market reach:
“We continued our focus on creating segmented offerings for the consumer during the festive quarter, which we believe will open up more consumption occasions. In recent months, we’ve introduced Bolt and Snacc (10-minute food delivery), expanded into new categories within Quick-Commerce, and plan to offer an even greater assortment.”
He also spoke about Swiggy’s latest initiatives:
- Bolt & Snacc: A 10-minute food delivery service that has already captured 9% of total deliveries within a short period.
- Swiggy Scenes: A platform for restaurant event reservations, enhancing the dining experience.
- One BLCK: A premium subscription tier under Swiggy One, catering to high-value customers.
Quick-Commerce Business & Competitive Landscape
Swiggy has been making aggressive investments in quick commerce, expanding its Instamart service. With 86 new stores added in January 2025, the company now serves 9 million active users. The increasing focus on dark store expansion and marketing indicates that Swiggy is determined to compete with players like Blinkit, Zepto, and Dunzo.
While Swiggy’s quick-commerce segment is growing rapidly, it remains a capital-intensive business with significant cash burn. The high competitive intensity in this sector means that profitability may take longer to achieve.
Financial Ratios & Market Performance
Swiggy’s financial metrics reflect the impact of its aggressive expansion strategy. While revenue is growing, the company is still struggling with profitability. Below is a snapshot of key financial ratios:
| Metric | Value |
|---|---|
| Market Cap | ₹94,761 Cr. |
| Current Price | ₹418 |
| 52-Week High / Low | ₹617 / ₹389 |
| Stock P/E | N/A |
| Book Value | Not disclosed |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | -24.4% |
| ROE (Return on Equity) | Not disclosed |
| Face Value | ₹1.00 |
| Debt to Equity Ratio | 0.15 |
| Industry P/E | 47.9 |
| Total Debt | ₹1,044 Cr. |
The Road Ahead for Swiggy
Despite rising losses, Swiggy’s strong revenue growth and market expansion suggest a promising future. However, profitability remains a key concern as the company heavily invests in quick commerce and dark store expansion.
Swiggy will need to strike a balance between growth and cost control to improve its financial health. Investors and industry experts will be closely watching how the company navigates the competitive landscape in the coming quarters.
Conclusion
Swiggy’s Q3 FY25 results reflect strong revenue growth but also underline the challenges of profitability in the highly competitive food delivery and quick-commerce market. With new innovations like Bolt, Snacc, and premium-tier services, the company is looking to capture a larger market share. However, investors will need to wait and see if Swiggy can turn its revenue growth into sustainable profits in the near future.
Stay tuned for more updates on Swiggy’s performance and industry trends!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.