Swiggy Ltd. shares are under pressure after its EBITDA loss widened to Rs 650 crore, higher than the Street's expectation of a Rs 504 crore loss, while the net loss stood at Rs 791 crore, also exceeding analyst estimates.
Swiggy shares fell as much as 4.28% to a low of Rs 283.25 apiece in early trade.
The company said increased investments to improve delivery partner availability led to a sequential decline in margins. Despite this, adjusted Ebitda improved by 70 basis points year-on-year, driven by higher take rates and operating leverage. Swiggy reiterated its medium-term guidance of achieving a 5% adjusted Ebitda margin on gross order value (GOV).
Food delivery remained resilient, with GOV growing 17.4% year-on-year. The company said restaurant-driven cancellations during the early part of the quarter affected performance, adding that like-for-like GOV growth would have been around 18% after normalising for the impact.
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