Shares of Swiggy tumbled over 7% to Rs. 387 on February 6, as mixed brokerage reviews followed the company’s widening losses in Q3 FY25. Swiggy reported a net loss of ₹800 crore, up from Rs. 524 crore a year ago, with analysts citing rising competition and aggressive dark store expansion as key factors weighing on margins.
Swiggy’s Instamart segment also continues to face margin pressures, driven by network expansion and intense competition from Blinkit and Zepto. The contribution margin dropped to -4.6% in Q3 FY25, down from -1.9% in the previous quarter.
Swiggy added 90 dark stores in January, nearly matching its Q3 expansion pace, with no immediate upgrades planned, unlike Zomato.
On the food delivery front, Swiggy reported a 19.2% YoY increase in gross order value (GOV) to Rs. 7,436 crore, driven by a growing transacting user base and higher order frequency. However, in the quick commerce space, Instamart’s annualized sales run-rate of $1.8 billion remains behind Blinkit’s $3.7 billion and Zepto’s $3 billion.
With margin pressure expected to persist, analysts remain cautious about Swiggy’s near-term prospects as it navigates a fiercely competitive landscape.
