Swiggy Q3 Results today: Shares trade 2% lower ahead of results announcement; here is what to expect

Founded in 2014, Swiggy is headquartered in Bangalore and operates in more than 580 Indian cities, as of July 2023. Besides food delivery, the platform also provides quick commerce services under the name Swiggy Instamart and same-day package deliveries with Swiggy Genie.

The stock listed at ₹412, reflecting a jump of 5.64% from the issue price on the BSE. Later, it surged 7.67% to ₹419.95.

On the NSE, shares of the firm made their market debut at ₹420, a jump of 7.69%.

The ₹11,327 crore initial public offer of Swiggy got fully subscribed on the final day of the share sale, ending with 3.59 times subscription.

The initial share sale had a price range of ₹371-₹390 a share.

The company's IPO had a fresh issue of shares worth ₹4,499 crore, along with an offer-for-sale (OFS) of ₹6,828 crore.

Going by the draft papers, the company planned to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure, brand marketing and business promotion, and debt payment, and funds will also be allocated for inorganic growth and general corporate purposes.

Swiggy December quarter results: What to expect

According to news reports, Swiggy's revenue for the quarter under review is expected to grow to 9.9% quarter-on-quarter (Q-o-Q), on average, to ₹3,962.85 crore as compared to ₹3,602.95 crore logged in Q2 FY25.

The company is also expected to widen its net loss on a sequential basis to ₹704.05 crore, on average, as compared to a loss of ₹623 crore in Q2FY25, according to a Business Standard report.

Key things to watch out for include Instamart’s gross order value (GOV) and average order value (AOV) growth, dark store additions, and margins.

Analysts at JM Financial forecast sequential gross order value (GOV) growth of 3.5% as compared to 19.3% YoY in the food delivery business.

They expect take rates to expand to 22.3% in Q3FY25 as compared to 21.9% in Q2FY25. Adjusted EBITDA margin (as percent of GOV) expansion is likely to be 40 bps sequentially.

Consolidated adjusted EBITDA in Q3 is seen at ₹431.2 crore as compared to ₹340.3 crore in Q2. "The consolidated adjusted EBITDA margin is likely at -10.7% as compared to -9.5% in Q2," the report added.