Swiggy Q3 Results: Net loss widens to ₹800 crore, revenue up 31% YoY; Quick comm revenue surges 114% YoY | Stock Market News

Swiggy Q3 Results: Swiggy announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Wednesday, February 5, reporting a consolidated net loss of ₹800 crore, compared to ₹524 crore in the corresponding period last year. The online platform poured money into its quick commerce business to compete with rivals Zomato and Zepto.

The newly listed food aggregator‘s revenue from operations in the third quarter of the current fiscal rose 31 per cent to ₹3,993 crore, compared to ₹3,049 crore in the year-ago period. The company’s total expenses surged to ₹4,898.27 crore from ₹3,700 crore in the same period last year.

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Swiggy Q3 Results: Key Metrics

On the operational front, Swiggy’s earnings before interest, taxes, depreciation, and amortization (EBITDA) loss in the December quarter rose to ₹725 crore, compared to ₹525 crore. Swiggy’s overall gross order value (GOV) grew 38 per cent to ₹12,165 crore compared to the year-ago period.

EBITDA is an alternate measure of profitability to net income, and it is used to assess a company’s profitability and financial performance. Swiggy’s food delivery business GOV grew 19.2 per cent YoY to ₹7,436 crore. GOV is the total monetary value of orders including delivery and packaging charges.

Adjusted EBITDA grew 63.7 per cent quarter-on-quarter (QoQ) to ₹184 crore, delivering a 2.5 per cent margin, up from 0.3 per cent a year ago. Swiggy’s quick commerce revenue more than doubled to 114 per cent in the December quarter, and the food delivery revenue was up 23.5 per cent. EBIT rose to ₹193 crore compared to ₹26 crore in the year-ago period.  

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“We continued our focus on creating segmented offerings for the consumer during the festive quarter, which we believe will open up more consumption occasions,” said Sriharsha Majety, MD & Group CEO, Swiggy. He said 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.

Swiggy’s quick commerce business, Swiggy Instamart, reported an 88 per cent YoY (15.5 per cent QoQ) rise in GOV to ₹3,907 crore on higher consumer spending and expansion into new cities. Swiggy said the average order value increased by 14 per cent to ₹534, driven by greater selection and increased consumer salience. Instamart added 96 new active stores during the quarter (up 16 per cent QoQ), driving up the active dark store area to 2.45 million square feet, an increase of 25 per cent QoQ).

Growth investments in quick-commerce reduced 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. “Instamart growth ramp-up continues amidst significant investments to expand the (quick delivery) market,” Swiggy said in an exchange filing.

“In recent months, we’ve introduced Bolt and Snacc (10-minute food delivery), expanded into new categories within quick-commerce, and plan to offer an even greater assortment. We’ve also launched Swiggy Scenes focused on restaurant event reservations and introduced One BLCK, the premium tier of our Swiggy One subscription program,” said CEO Majety.

Swiggy delivered higher YoY growth across all three primary businesses during the December quarter, accelerating B2C GOV growth to 38 per cent YoY. According to Majety, Instamart added another 86 stores in January 2025, growing MTUs to nine million (+two million).

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Swiggy’s operating segments comprise food delivery service, out-of-home consumption, quick commerce, supply chain and distribution, and platform innovations. Platform innovations consist of a set of incubators for new service offerings, including business verticals such as Private Brands, Swiggy Genie, Swiggy-Minis, Insanely Good, etc.

Swiggy plans to close FY25 with twice as many fulfilment centres for its Instamart business, up from 523 a year ago. Instamart is now available in 84 cities. Swiggy is on track to achieve a four million square feet active dark store area by March. The out-of-home consumption segment ramped GOV growth to 68 per cent YoY, and the dineout business reached break-even for December 2024.