Food and grocery delivery major Swiggy on Wednesday reported widening of consolidated loss to INR 799.08 crore for the third quarter ended December 2024. The company had incurred a net loss of INR 574.38 crore in the year-ago period.
Total expenses surged to INR 4,898.27 crore from INR 3,700 crore in October-December FY24. Revenue from operations also increased to INR 3,993.06 crore from INR 3,048.69 crore, a regulatory filing said.
Notably, Swiggy’s overall Gross Order Value (GOV) grew 38 per cent year-on-year (YoY) to INR 12,165 crore.
“We continued our focus on creating segmented offerings for the consumer during the festive quarter, which we believe will open up more consumption occasions,” Sriharsha Majety, MD & Group CEO, Swiggy, said.
He further said the secular expansion in food delivery margins and cash-flow generation is balanced by growth investments being made in quick-commerce including dark stores expansion and marketing, amidst high competitive intensity in the near term.
The company’s Food Delivery business GOV grew 19.2 per cent YoY to INR 7,436 crore. Adjusted EBITDA grew 63.7 per cent QoQ to INR 184 crore, delivering a 2.5 per cent margin, up from 0.3 per cent a year ago, the company stated.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) is an alternate measure of profitability to net income which is used to assess a company’s profitability and financial performance.
Swiggy’s quick commerce business Swiggy Instamart reported an 88 per cent YoY (15.5 per cent QoQ) rise in GOV to INR 3,907 crore. Average order value increased by 14 per cent YoY to INR 534 driven by greater selection and increased consumer salience, Swiggy informed.
Zomato’s food-delivery CEO Rakesh Ranjan said in a letter to the shareholders that the demand environment in the October-December period was muted for the broader restaurant industry.
Instamart added 96 new active stores during the quarter (up 16 per cent QoQ); driving up active dark store area to 2.45 million square feet, an increase of 25 per cent QoQ). Growth investments in quick-commerce led to a reduction in contribution margin from -1.9 per cent in Q2FY25 to -4.6 per cent in Q3FY25, as the company ramped up user activation and dark store expansion across geographies.
Swiggy’s operating segments comprise food delivery; out-of-home consumption; quick commerce; supply chain and distribution ; and platform innovations which consist of set of incubators for new service offerings including business verticals such as Private Brands, Swiggy – Genie, Swiggy-Minis, Insanely Good etc.
The company’s scrip settled at INR 418.10, down 3.59 per cent from its previous close on BSE.
