Swiggy Share Price Soars Ahead Of Q2FY25 Results, Prosus Says Revenue Jumps 40% In H1FY25; Check

Swiggy's stock soared by 6% in early trading today as investors geared up for the company's Q2 FY25 financial results, expected to highlight its impressive growth trajectory. By 9:40 am on the National Stock Exchange (NSE), Swiggy shares were trading at Rs 511.75 per share, marking a 4% intraday gain. This performance continues the upward momentum seen since its IPO last month, with the stock climbing 24% since its debut on November 13.

Revenue Growth in H1 FY25

For the first half of FY25 (H1 FY25), the food tech and grocery delivery giant reported revenues of $750 million (approximately Rs 6,300 crore), representing a 40% increase from $536 million (Rs 4,500 crore) in the same period last year. These figures were revealed in the half-yearly disclosures of Prosus, Swiggy's largest shareholder.

The company also demonstrated improved financial health, with adjusted EBITDA losses narrowing. During H1 FY25, Swiggy's EBITDA loss stood at $85 million (Rs 714 crore), a 41% improvement compared to the $145 million (Rs 1,218 crore) loss recorded in the corresponding period of FY24.

IPO Success

Swiggy's initial public offering (IPO) last month marked one of the largest listings for a new-age company in India. The IPO raised Rs 11,327.43 crore, comprising a fresh issue of Rs 4,499 crore and an offer for sale (OFS) worth Rs 6,828.43 crore. The IPO price band was set at Rs 371 to Rs 390 per share.

Notably, Prosus, which held a 33% stake in Swiggy pre-IPO, strategically reduced its shareholding to just below 25%, avoiding the "promoter" tag under regulatory norms. By selling shares worth $500 million during the IPO, Prosus secured over $2 billion in gains from its investment in Swiggy while retaining a significant stake.

Ervin Tu, President and CIO of Prosus and Naspers, expressed optimism about Swiggy's growth potential. "With Swiggy's recent IPO and strategic equity sales, we've unlocked significant value. Our strong balance sheet positions us to leverage the next wave of opportunities," Tu said.

Swiggy's growth trajectory is particularly noteworthy when compared to its long-time rival, Zomato. During H1 FY25, Zomato reported revenues of Rs 9,462 crore (approximately $1.12 billion), maintaining its edge as a market leader. However, Zomato's key differentiator lies in its profitability, with a post-tax profit (PAT) of Rs 429 crore during the same period.

While Swiggy's profitability remains elusive, its rapid revenue growth and narrowing losses suggest a strong pathway to financial sustainability. With a burgeoning market for food delivery and grocery services in India, both companies are vying to capture a larger share of the consumer space.

Swiggy's strong market performance has boosted investor confidence, reflecting optimism about its future prospects. Swiggy's official Q2 FY25 results, set to be released later today, are expected to further reflect on its growth story. Analysts will watch key performance indicators, including revenue, profitability, and market share, to gauge the company's long-term potential.