Swiggy Q2 Results: Net Loss Widens Despite 54.4% Jump In Revenue

Swiggy Ltd. on Thursday posted a 54.4% year-on-year rise in its consolidated revenue during the quarter ended September, but the company’s net loss widened to Rs 1,092 crore.

Key Takeaways from Swiggy’s Q2 Results

The food delivery major logged a revenue of Rs 5,561 crore in the second quarter, as compared to Rs 3,601 crore in the same quarter last year. The topline has exceeded the estimate of Rs 5,284.63 crore of the analysts tracked by Bloomberg.

The company’s loss in the second quarter came in at Rs 1,092 crore in comparison to a loss of Rs 554 crore in the same quarter of the previous fiscal. Operating loss or earnings before interest, taxes, depreciation, and amortisation widened to Rs 798 crore.

Swiggy’s Food Delivery Business

Swiggy’s food delivery business maintained its positive trajectory, posting a 22% year-on-year growth and 6.8% quarter-on-quarter rise in revenue. The food delivery business gross order value grew in line with the guidance at 18.8% year-on-year to Rs 8,542 crore.

For more information on food delivery business, you can visit our website.

Quick Commerce Arm

However, the standout performer remains its quick commerce arm, which registered a staggering 100% year-on-year growth and 21.6% quarter-on-quarter increase in revenue, indicating strong traction in its express grocery and essentials delivery model. The Instamart segment’s gross order value rose 108% year-on-year.

The company added 40 dark stores. The average order value rose 39.7% year-on-year led by traction in Maxxsaver.

Supply Chain and Distribution Operations

Another bright spot for Swiggy was its supply chain and distribution operations, which soared 76% year-on-year, reflecting the company’s continued efforts to expand its backend infrastructure and delivery capabilities.

Out of Home Consumption segment continued profitable trajectory with 52% year-on-year gross order value growth, the company said in an exchange filing.

Fund Raising Plans

Swiggy has also announced that it is mulling to raise Rs 10,000 crore via Qualified Institutional Placement or any other permitted modes under applicable laws.

For more information on qualified institutional placement, you can visit our website.

Stock Market Reaction

The quarterly earnings were shared after market hours. The stock settled 0.24% lower at Rs 417.95 apiece on the NSE, compared to a 0.68% decline in the benchmark Nifty 50.

Swiggy shares have fallen 8.34% in the last 12 months and 22.73% year-to-date.

Out of 26 analysts tracking the company, 20 maintain a ‘buy’ rating, two recommend a ‘hold’ and four suggest ‘sell’, according to Bloomberg data.

The average 12-month consensus price target of Rs 482.57 implies an upside of 15.5%.

For more information on Nifty 50, you can visit our website.

What’s Next for Swiggy?

Swiggy’s Q2 results show a mixed bag, with revenue growth but widening losses. The company’s focus on expanding its quick commerce arm and supply chain operations is expected to drive growth in the coming quarters.

However, the company’s ability to raise funds and reduce losses will be crucial to its long-term success.

For more information on Swiggy share price, you can visit our website.