Newly-listed Swiggy posts net loss of ₹625 cr in Q2FY25; revenue rises to ₹3,601 cr

Foodtech unicorn Swiggy on Tuesday released its first earnings report post its listing on the stock exchanges last month. The online food ordering and delivery company saw its consolidated net loss narrowing marginally to ₹625.5 crore in the second quarter ended September 30, 2024, as compared to ₹657 crore in the year ago period. On a quarter-on-quarter basis, the loss was marginally higher than ₹611 crore reported in the June quarter of the current fiscal.

The revenue from operations grew 30% YoY to ₹3,601.4 crore in Q2 FY25, from ₹2,763.33 crore in the corresponding period last year. Sequentially, the top line was marginally higher at ₹3,222.2 crore reported in the previous quarter, as per the exchange filing. This was attributed to improvement in performance of both food delivery and quick commerce businesses.

For the first half of the current fiscal, net loss stood at ₹1,236.54 crore as compared to ₹1,221 crore in H1 FY24. The revenue, however, increased by 32.4% to ₹6,823.67 crore from ₹5,153.15 crore in the year agop period.

Swiggy’s overall gross order value (GOV) grew 30 % YoY to ₹11,306 crore, while the consolidated adjusted EBITDA loss stood at ₹341 crore represented a reduction in the loss by 30% YoY. Platform average monthly transacting users (MTU) grew 19.2% YoY to 17.1 million

As per the release, food delivery business witnessed a near doubling of its profitability, with adjusted EBITDA clocking ₹112 crore at a 1.6% margin. GOV grew steadily by 5.6% QoQ to ₹7,191 crore. The company recently launched ‘Bolt’, a 10-minute restaurant food delivery service, which already accounts for 5% of the overall food deliveries within 8 weeks of launch.

“The remarkable performance of our food business operations comes on the back of strong innovation and execution. We are constantly trying to anticipate and improve the consumer's experience. The recent launch of Bolt- our 10-minute delivery service is an example of that,” says Sriharsha Majety, MD & Group CEO, Swiggy.

“Similarly in quick commerce, we are anticipating and responding to consumer behaviour to bring more and more convenience to urban households. Instamart today is present in 54 cities and delivers more than 32m000 unique items, within an average delivery time of 13 minutes,” he adds.

During the quarter under review, Swiggy Instamart, the company’s quick commerce platform, witnessed a significantly improved performance where its GOV growth accelerated to 24 % QoQ to reach ₹3,382 crore. The overall orders grew by 21 % QoQ, with orders per dark store per day rising 10% QoQ. Instamart added 12 cities and 52 stores during the quarter and improved its contribution margin by 124 bps QoQ to-1.9 %.

Going ahead, Swiggy Instamart plans to double its dark store count by March 25 (vs. 523 on March 24), while increasing the average size of stores by 30-35%. As a result, the active dark store area will grow to over 2.5 times YoY to reach 4 million square feet by March 25.

Ahead of Q2 results, shares of Swiggy rose 9.4% to hit a new high of ₹542.10 in intraday trade. However, the stock settled 1.2% lower at ₹489.20, paring early gains as investors reacted to its earnings report, while the market capitalisation stood at ₹1.09 lakh crore at the end of day’s trade. At the current level, shares of Swiggy commands a premium of 25.4% over the initial public offering price of ₹390 apiece.

Swiggy made its stock market debut on November 13, 2024, after raising ₹11,300 crore in the country’s second largest IPO this year, after Hyundai Motor India’s ₹27,870 crore issue. The public issue was subscribed 3.59 times, with the quota reserved for the retail investors receiving 1.14 times bids, while QIB and NII segments subscribed by 6.02 times and 0.41 times, respectively.