Swiggy Q2 Results: Net loss narrows to ₹625.5 crore in first earnings post IPO, revenue up 39% YoY
- Swiggy Q2 Results: Swiggy's revenue from operations increased by 30 per cent to ₹3,601.45 crore in the September quarter from ₹2,763.33 crore in the corresponding period last year
Swiggy Q2 Results: Food and grocery delivery platform Swiggy announced its July-September quarter results for fiscal 2024-25 (Q2FY25) on Tuesday, December 3, reporting a consolidated net loss of ₹625.5 crore driven by robust order growth in both its food delivery and quick commerce segments, compared to a loss of ₹657 crore in the corresponding period last year.
The newly listed food aggregator declared its quarterly earnings results to stock exchanges for the first time today since its stock market debut on November 13, 2024, after the conclusion of its ₹11,327,43 crore initial public offering (IPO), India's second-largest share sale this year. Swiggy's quarterly loss narrowed by five per cent in the September quarter. Its losses from quick commerce negated its profits from food delivery.
Also Read: Swiggy plans to add over 430 Instamart dark stores by March, eyes contribution break-even next year
Swiggy's revenue from operations increased by 30 per cent to ₹3,601.45 crore in the September quarter from ₹2,763.33 crore in the corresponding period last year. Total expenses also grew to ₹4,309.54 crore during the quarter under review, from ₹3,506.63 crore in the corresponding period last fiscal. In FY24, Swiggy's turnover stood at ₹5,195.7 crore.
Swiggy Q2 Results: Key Metrics
On the operational front, Swiggy's earnings before interest, taxes, depreciation, and amortization (EBITDA) loss in the September quarter narrowed to ₹555 crore, compared to ₹624 crore. Swiggy's food delivery revenue rose 22 per cent year-on-year (YoY) and four per cent quarter-on-quarter (QoQ) at ₹1,577 crore.
Quick-commerce revenue rose 136 per cent YoY and 31 per cent QoQ at ₹490 crore. Swiggy’s food delivery business nearly doubled its profitability, with adjusted EBITDA clocking ₹112 crore at a 1.6 per cent margin. GOV grew steadily by 5.6 per cent QoQ to ₹7191 crore. Swiggy recently launched ‘Bolt’, a 10-minute restaurant food delivery service, which accounts for five per cent of the overall food deliveries within eight weeks of launch.
Swiggy Instamart, the company’s quick commerce platform, witnessed a significantly improved performance. Instamart’s gross order value (GOV) - the total value of all orders - grew 75 per cent YoY, with revenue from the segment accounting for 13.6 per cent of Swiggy's overall revenue. Overall, Swiggy's GOV rose 30 per cent to ₹11,306 crore.
'In quick commerce, we anticipate and respond to consumer behaviour to bring more and more convenience to urban households. Instamart is present in 54 cities today and delivers more than 32,000 unique items, with an average delivery time of 13 minutes," said Sriharsha Majety, MD & Group CEO, Swiggy.
The Instarmart unit improved its contribution margin—revenue from orders after covering variable costs as a percentage of GOV—to -1.9 per cent sequentially. Swiggy expects Instamart's contribution margins to break even by the December 2025 quarter.
At the same time, Swiggy expects to achieve positive core earnings—EBITDA on an adjusted basis—at the consolidated group level. Its food delivery business is already profitable on an adjusted basis. Swiggy said it will make strategic investments to drive profitability in Instamart's rapid commerce business.
Swiggy Instamart plans to double its dark store, or distribution warehouse, count to more than 1,000 by March 2025 compared to 523 in March 2024 while increasing the average size of stores by 30-35 per cent. As a result, the active dark store area will grow over 2.5 times YoY to reach 40 lakh square feet square feet by March 25.
Instamart is expected to reach operating profit break-even in July-September 2026. It competes with Zomato's Blinkit, which turned profitable in the three months ended March. "Our AOV (average order value) has grown by 7.3 per cent in H1FY25, and we expect double-digit growth annually for the foreseeable future," said Swiggy.
The company also said its board had approved an investment of up to ₹1,600 crore in the equity shares of its wholly-owned subsidiary, Scootsy Logistics Pvt Ltd, in one or more tranches by subscription to the rights issue. Scootsy is engaged in supply chain services and distribution. The food delivery biz logged an adjusted revenue of ₹1,808 crore, and the quick-commerce vertical Instamart registered an adjusted revenue of ₹513 crore.
Shares of Swiggy rallied as much as 9.8 per cent ahead of Tuesday's result announcement, before paring gains to 1.7 per cent at close. Since its listing last month, Swiggy's IPO investors have received a 29 per cent return.
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