Swiggy’s stock has taken a hit, falling below its IPO price and touching a new 52-week low. Investors are now left wondering whether it’s an opportunity to buy at a discount or a signal to stay away. With losses widening despite strong revenue growth, here’s a deep dive into Swiggy’s current financial position, expert recommendations, and what it means for investors.
Also read: Swiggy IPO: Key Details, GMP & Expert Advice on Investing
Swiggy share price today: A look at the numbers
Swiggy’s stock dropped 7.4% on February 6, 2025, hitting a 52-week low of Rs 385.25, compared to its listing price of Rs 412. This sharp decline followed its Q3 FY25 earnings report, which revealed an increase in losses despite revenue growth.
| Metric | Q3 FY25 | Q3 FY24 | Q2 FY25 |
| Share Price (52-week low) | Rs 385.25 | – | – |
| Net Loss | Rs 799 crore | Rs 574 crore | Rs 626 crore |
| Revenue | Rs 3,993 crore | Rs 3,049 crore | Rs 3,601 crore |
| Expenses | Rs 4,898 crore | Rs 3,700 crore | Rs 4,309 crore |
| Gross Order Value (GOV) | Rs 12,165 crore | – | – |
What’s causing the stock drop?
- Increased Losses: Swiggy’s net loss widened from Rs 574 crore in Q3 FY24 to Rs 799 crore in Q3 FY25, despite a 31% rise in revenue.
- Rising Expenses: Total expenses surged 32% YoY, reaching Rs 4,898 crore, up from Rs 3,700 crore in the same period last year.
- Quick Commerce Struggles: Swiggy Instamart saw a 420 basis point (bps) drop in EBITDA margins and a 270 bps drop in contribution margin QoQ.
- Competitive Market: The food delivery and quick-commerce space remain highly competitive, impacting Swiggy’s profitability.
Analysts remain divided on Swiggy’s future
Market analysts have differing views on Swiggy’s stock outlook:
| Analyst | Rating | Target Price (Rs) | Key Takeaways |
| UBS | Buy | 515 | Positive on food delivery margins but cautious on quick commerce growth. |
| Macquarie | Underperform | 325 | Concerned about quick commerce losses and competitive pricing pressure. Prefers Zomato. |
| Nuvama | Not Rated | – | Notes stable food delivery business but declining margins due to dark store expansion. |
While UBS maintains a bullish stance, citing Swiggy’s long-term profitability in food delivery, Macquarie remains cautious, pointing to challenging economics in the quick commerce segment.
Quick commerce: The biggest challenge for Swiggy
Swiggy’s Instamart, the quick commerce arm, is under pressure. While revenue from the segment grew 17.7% sequentially to Rs 576.5 crore, the business remains unprofitable. The adjusted EBITDA margin for Instamart dropped 420 basis points quarter-on-quarter, with a 270bps decline in contribution margin.
Swiggy continues to invest in expanding its dark store network, which is expected to further impact margins in Q4FY25. The company is aiming to double the number of dark stores by March, increasing operational costs in an already competitive space dominated by Zomato’s Blinkit and Zepto.
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Swiggy vs. Zomato: The battle for profitability
Swiggy’s food delivery segment remains its core strength, but the challenge lies in scaling quick commerce profitably. While Zomato has already achieved adjusted EBITDA profitability, Swiggy is still struggling to reach breakeven.
| Metric | Swiggy (Q3FY25) | Zomato (Q3FY25) |
| Revenue | Rs 3,993 crore | Rs 3,288 crore |
| Net Loss | Rs 799 crore | Rs 138 crore |
| Food Delivery GOV | Rs 7,436 crore | Rs 9,257 crore |
| Quick Commerce GOV | Rs 12,165 crore | Rs 3,946 crore (Blinkit) |
While Swiggy leads in overall Gross Order Value, Zomato’s better unit economics and operational efficiency make it a more attractive bet for investors at the moment.
Should you buy, sell, or hold Swiggy stock?
Reasons to Buy:
✅ Strong revenue growth: Despite losses, Swiggy’s revenue jumped 31% YoY, showing demand strength.
✅ Market leadership: Swiggy remains a major player in both food delivery and quick commerce.
✅ Long-term profitability potential: With cost optimisations, Swiggy could achieve margin improvements over time.
Reasons to Sell:
❌ Rising losses: Increasing operational costs and heavy spending on Instamart expansion are widening losses.
❌ Competitive pressures: Zomato and Zepto’s aggressive expansion may limit Swiggy’s pricing power.
❌ No immediate breakeven timeline: Unlike Zomato, Swiggy hasn’t provided clear guidance on when it expects to turn profitable.
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Final Verdict:
- If you have a long-term horizon, Swiggy’s growth trajectory in food delivery could be promising.
- However, if you are looking for short-term stability, the stock could remain under pressure due to mounting losses and competitive challenges.
- Investors should track Q4FY25 results closely to see if margin improvements materialise before making a decision.
Conclusion
Swiggy’s stock has fallen sharply due to mounting losses and concerns over quick commerce profitability. While revenue growth remains strong, analysts are divided on its long-term prospects. With competitors like Zomato gaining ground, Swiggy must focus on cost-cutting and operational efficiency to regain investor confidence.
For now, investors should watch Q4FY25 earnings, assess margin improvements, and decide accordingly. As always, consult a financial expert before making any investment moves.
