Swiggy Q2 Results: Net Loss Widens Despite Over 50% Jump In Revenue — Key Takeaways

Swiggy Ltd. on Thursday posted a 54.4% year-on-year rise in its consolidated revenue during the quarter ended September.

The food delivery major logged a revenue of Rs 5,561 crore in the second quarter, as compared to Rs 3,601 crore in the same quarter last year. The topline has exceeded the estimate of Rs 5,284.63 crore of the analysts tracked by Bloomberg.

The company's loss in the second quarter came in at Rs 1,092 crore in comparison to a loss of Rs 554 crore in the same quarter of the previous fiscal.

Operating loss or earnings before interest, taxes, depreciation, and amortisation widens to Rs 798 crore.

Swiggy Q2 Highlights (Consolidated, YoY)

• Net Loss at Rs 1,092 crore versus loss of Rs 626 crore.

• Revenue up 54.4% At Rs 5,561 crore versus Rs 3,601 crore.

• Ebitda Loss at Rs 798 crore versus loss Of Rs 554 crore.

Swiggy's food delivery business maintained its positive trajectory, posting an 22% year-on-year growth and 6.8% quarter-on-quarter rise in revenue. The food delivery business gross order value grew in line with the guidance at 18.8%year-on-year to Rs 8,542 crore.

However, the standout performer remains its quick commerce arm, which registered a staggering 100% year-on-year growth and 21.6% quarter-on-quarter increase in revenue, indicating strong traction in its express grocery and essentials delivery model. The Instamart segment's gross order value rose 108% year-on-year. The company added 40 darkstores. The average order value rose 39.7% year-on-year led by traction in Maxxsaver.

Another bright spot for Swiggy was its supply chain and distribution operations, which soared 76% year-on-year, reflecting the company's continued efforts to expand its backend infrastructure and delivery capabilities. Out of Home Consumption segment continued profitable trajectory with 52% year-on-year gross order value growth, the company said in an exchange filing.

Swiggy has also announced that it is mulling to raise Rs 10,000 crore via Qualified Institutional Placement or any other permitted modes under applicable laws.

Swiggy Share Price Today

The quarterly earnings was shared after market hours. The stock settled 0.24% lower at Rs 417.95 apiece on the NSE, compared to a 0.68% decline in the benchmark Nifty 50.

Swiggy shares have fallen 8.34% in the last 12 months and 22.73% year-to-date.

Out of 26 analysts tracking the company, 20 maintain a 'buy' rating, two recommend a 'hold' and four suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 482.57 implies an upside of 15.5%.