Swiggy Share Price Jumps On Strong Q2 Earnings, Revenue Grows 30% YoY, User Base Expands; BUY?

Swiggy's stock continued its upward trajectory, rising 3% to Rs 517 in early trade today, buoyed by the announcement of its Q2 FY25 results. This rally follows a 1.7% gain yesterday, with the stock closing at Rs 502 ahead of the eagerly anticipated earnings report.

Q2FY25 Results

Swiggy reported a 30% year-on-year (YoY) revenue growth for the July-September quarter, reaching Rs 3,601.5 crore compared to Rs 2,763.3 crore in the same quarter last year. Sequentially, the revenue rose from Rs 3,222.2 crore in Q1 FY25.

Despite strong revenue growth, the company posted a net loss of Rs 625.5 crore for Q2 FY25. While this reflects a 5% improvement from the Rs 657 crore loss in the same period last year, it was slightly higher than the Rs 611 crore loss reported in the previous quarter.

This financial disclosure marks Swiggy's first earnings announcement since its public listing in November.

User Base Expands

Swiggy's operational metrics also pointed to strong growth, with monthly transacting users (MTU) reaching 17.1 million during the quarter, up by 1 million from Q1 FY25. This represents a 7% quarter-on-quarter (QoQ) growth and a 19% YoY increase.

Brokerage firm CLSA noted that the gap between Swiggy and Zomato appears to be narrowing, hinting at increased competitiveness and market share stability.

Instamart Expansion

Swiggy's quick commerce arm, Instamart, remains a key growth driver. Competing with Zomato's Blinkit and emerging players like Zepto, Instamart has been expanding its dark store network to enhance delivery speed and coverage. Quick commerce continues to be a high-growth segment, catering to consumers' preference for rapid delivery services.

Stock Market Performance Post-IPO

Swiggy's shares have gained approximately 33% from their IPO price of Rs 390, less than a month after listing. The company now boasts a market capitalization exceeding Rs 1.16 lakh crore.

In November, Swiggy raised Rs 11,327 crore through its initial public offering (IPO). The public issue comprised a fresh issue of Rs 4,499 crore and an offer for sale (OFS) worth Rs 6,828 crore, marking one of the largest tech IPOs in recent years.

As of 11:40 am today, Swiggy's stock was trading at Rs 514.25, up nearly 2.5% on the National Stock Exchange (NSE). The company's performance indicates a strong start post-IPO, with robust revenue growth and expanding market presence in both food delivery and quick commerce.