Swiggy shares are in sharp focus after the food delivery behemoth reported a dramatic expansion of its net loss for the fourth quarter of FY25. Losses almost doubled to Rs 1,081 crore, from Rs 554 crore a year earlier, even as operating revenue jumped 45% year-on-year to Rs 4,410 crore. The company's aggressive foray into quick commerce, especially through its Instamart arm, was the main driver behind the ballooning losses.
Key Points
Swiggy's Q4 net loss increased to Rs 1,081 crore, a 94% rise over the same period year ago.
Revenue from operations rose 45% to Rs 4,410 crore, driven by strong demand and growth across verticals.
The total outgo of the company soared 53% year-on-year to Rs 5,610 crore as Swiggy increased investment in customer acquisition, dark store growth, and advertising to protect its market share from intense competition from Blinkit and Zepto.
Instamart, Swiggy's quick commerce venture, registered its Gross Order Value (GOV) rise 101% year-on-year to Rs 4,670 crore. The business added 316 dark stores, outpacing the combined additions in the last eight quarters, and went live in 124 cities.
Food delivery GOV expanded 17.6% to Rs 7,347 crore, as adjusted EBITDA margins strengthened to 2.9% from 0.5% in the year ago period, with help from efficiency improvements and new products such as the One BLCK premium subscription and Bolt-driven quicker deliveries.
Swiggy's consolidated adjusted EBITDA loss increased to Rs 732 crore primarily due to the huge investments in Instamart.
The out-of-home consumption segment became profitable, recording 42% growth in GOV and a positive adjusted EBITDA margin for the first time.
User engagement was robust, with average monthly transacting users increasing 35% year-on-year to 19.8 million, and 35% of users using more than one service on the platform.
Leadership Commentary
Swiggy's MD & Group CEO Sriharsha Majety characterized FY25 as a year of firsts, pointing to the introduction of new apps such as Instamart, Snacc, and Pyng, and the company's efforts to enter new user bases and geographies. Majety said that while investments in Instamart reached a peak in Q4, he anticipates losses in the segment to unwind progressively as the business grows and competition stabilizes.
Competitive Landscape
The performance follows growing competition in the space of quick commerce. As Swiggy's losses increased following its aggressive expansion, its key rival Zomato posted a steep fall in quarterly profit but a 64% increase in revenue, highlighting the high-stakes war over market share and the high price of rapid growth.
Outlook
In spite of the short-term strain on profitability, Swiggy is still betting on growth, relying on convenience, innovation, and an expanded service portfolio to fuel future profits. With Rs 6,695 crore in cash and cash equivalents as of March 31, 2025, the company is well-funded to continue its expansion, although investors will be keenly observing for indications of declining losses in the coming quarters.
Sources: The Economic Times, Financial Express, Moneycontrol, Business Standard
