Swiggy Reports 39% Increase in Losses, Posts Rs 799 Crore Net Loss in Q3 FY25

New Delhi: Swiggy, the popular online food delivery giant, has reported a significant widening of its losses for the third quarter (Q3 FY25). The company posted a net loss of Rs 799.08 crore for the October-December period, marking a 39% increase from its loss of Rs 625.53 crore in the previous quarter.

Year-on-Year Losses Continue to Rise

On a year-on-year basis, Swiggy’s loss has grown substantially, with a 39% increase from the Rs 574 crore loss recorded in the same period last year. This shows that the company is still grappling with profitability issues despite its growth in revenue.

Operating Loss Increases

Swiggy’s operating loss, which accounts for losses before interest, tax, depreciation, and amortization (EBITDA), also saw a rise. The operating loss for Q3 FY25 stood at Rs 725.66 crore, up from Rs 554.17 crore in the previous quarter, continuing its trend of increasing financial strain.

Revenue Growth in Key Segments

Despite the mounting losses, Swiggy’s revenue showed some positive signs. The company reported a 10.9% increase in revenue from the previous quarter, reaching a total of Rs 3,993.07 crore. This increase was primarily driven by its food delivery segment, which contributed Rs 1,636.88 crore to the overall revenue.

Swiggy’s Instamart, its quick-commerce arm, also performed well, with a 17.7% sequential rise in revenue, reaching Rs 576.5 crore.

Swiggy’s Growth Investments and Strategic Outlook

Sriharsha Majety, MD and Group CEO of Swiggy, commented on the company’s financial situation, stating that the company is focusing on expanding food delivery margins and cash flow generation. However, the growth investments in quick commerce, including dark store expansion and marketing campaigns, are impacting near-term profitability due to highly competitive intensity in the market.

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Stock Performance

Ahead of the Q3 results, Swiggy’s shares saw a drop of 3.69%, closing at Rs 418.05 per share on the National Stock Exchange (NSE). Since its listing in November, Swiggy’s stock price has fallen by 8.32%.

Growth in Gross Order Value (GOV)

Swiggy’s Gross Order Value (GOV) grew by 38%, reaching Rs 12,165 crore. Additionally, the company’s consolidated adjusted EBITDA loss reduced by around 2% year-on-year to Rs 490 crore. However, on a sequential basis, the EBITDA loss increased slightly to Rs 149 crore.

Zomato’s Decline in Profits

Swiggy’s primary competitor, Zomato, also reported a decline in profits. Zomato’s profits fell by 57% year-on-year, with the company posting a profit of Rs 59 crore in Q3 FY25.

Looking Ahead

As Swiggy continues to expand its operations and invest heavily in its quick-commerce segment, the company’s management is focusing on navigating through the competitive market environment while managing its growing losses. With strategic investments and expansion plans in place, Swiggy hopes to see a positive turnaround in the coming quarters.