Swiggy hits record low on wider quarterly loss

Swiggy shares drop 8% to record low due to wider loss from quick commerce expansion against Zomato.

Shares of Swiggy plunged about 8% a record low on Thursday (February 6, 2025), after the company reported a wider third-quarter loss hurt by increased expansion costs to counter rivals Zomato and Zepto.

Companies like Swiggy and Zomato are intensifying their focus on quick commerce, which aims to deliver a variety of products in less than 10 minutes, by opening more warehouses or so-called “dark stores” to fulfil such orders.

Shares of the company were last trading about 4% lower at ₹401.65, and were set for a seventh straight week of decline.

Swiggy, which operates quick commerce platform Instamart, reported a 32% surge in expenses on Wednesday (February 5, 2025) as it launched 96 new dark stores during the quarter, almost twice the number from the previous quarter.

It added 86 more such stores in January, which analysts at Nuvama said will create headwinds for the firm in the ongoing quarter.

Elara Capital analysts said Instamart’s contribution margin during the December quarter was more impacted than its rival Zomato, which is also facing the same struggle.

Swiggy’s contribution margin in quick commerce sequentially contracted by 270 basis points to 4.6% in the third quarter.