Swiggy Share Price Falls 4% After Q1 Loss Widens

Swiggy Ltd. shares fell during early trade on Friday after the delivery company's first-quarter net loss widened despite revenue growth beating estimates.

Swiggy's net loss widened to Rs 1,197 crore in the June quarter, compared to Rs 1,081 crore in the previous quarter. Revenue from operations rose 12.5% sequentially to Rs 4,961 crore in the June quarter, higher than the Bloomberg consensus estimate of Rs 4,878 crore.

The food delivery business reported 18% year-on-year growth and a 10% sequential rise, supported by improved demand and higher order frequency.

Swiggy has guided for high single-digit growth for the full financial year, with most business segments expected to deliver strong performances.

Commentary on the street has been upbeat, with analysts highlighting strong growth in food delivery while momentum continues in quick commerce.

Of the eight analysts tracking Swiggy and issuing ratings after results, six have recommended a 'buy' and two suggest 'sell', as per Bloomberg data. Jefferies upgraded the stock to 'Buy' from 'Hold' and hiked its 12-month target price to Rs 500 from Rs 380 earlier.