Swiggy share price jumps nearly 6% to ₹567.9 apiece; here's why

In early trade, the stock rose as much as 5.78% to ₹567.9 apiece on the NSE. At 9:29 a.m., it was up 3% to ₹553 per share.

Last week, Swiggy reported a narrowing of consolidated post-tax loss to ₹625.53 crore for the second quarter ended September 2024. In the year-ago period, the company had posted a net loss of ₹657 crore.

The online food aggregator, in an exchange filing, said that it expects to achieve "positive adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortisation) by the third quarter of FY26".

Revenue from operations spiked to ₹3,601.45 crore in the latest September quarter, compared to ₹2,763.33 crore in the same period a year ago.

Meanwhile, total expenses jumped to ₹4,309.54 crore in Q2 FY25 from ₹3,506.63 crore in the year-ago period.

The company's board also approved an investment of ₹1,600 crore in its wholly-owned subsidiary, Scootsy Logistics Private Limited, which provides supply chain services and distribution.

In a statement to shareholders, Swiggy CEO Sriharsha Majety said, "Swiggy’s food delivery business continues to gain strength every quarter, and our GOV (gross order revenue) has grown 5.6% QoQ in Q2FY25. The business has ramped up profitability significantly, with Adjusted EBITDA margins improving by nearly 1,000 bps over the past 2.5 years, to 1.6% in Q2FY25. This has been the result of consistent growth in users and their spending, a leap in restaurant advertising, concerted efforts on efficiency in fixed costs, substantial improvement in on-ground execution (especially in Tier-2 cities), and cost-efficient interventions into improving the customer experience."

He stated that the Swiggy Instamart is at an inflect point with quick-commerce business expanding to more geographies. He also informed shareholders that the national average delivery time has been reduced to 13 minutes in September 2024 from 17 minutes a year ago.