The price of Swigy’s share fell 5% in Tuesday’s Intrade Trade to Rs 389.25. This is less than its issue price of Rs 390 per share. This price is at the lowest level since the listing on 13 November 2024. In addition, Swigg’s stock price has fallen to 37% from a high of Rs 617 on 23 December 2024.
In the month of January 2025, Swigi shares have fallen by 28% so far, while BSE Sensex has fallen by just 3%. At 12:01 pm on Tuesday afternoon, Swigi’s stock was trading 4% to Rs 394.50, while the benchmark index was 0.96%.
Swigy business
Swiggy holds a large network in food delivery, which works with more than 2 lakh restaurants in more than 680 cities. Swiggy Instamart, which is its Quick Commerce platform, is serving in more than 75 cities and delivers grocery and other essential items in more than 20 categories in 10 minutes.
Swiggy platform has now become very important for urban customers, as it covers the needs of food delivery in the same app. Swiggy’s “All-in-One App” strategy makes him special in the competitive market. However, Zomato is currently ahead of both food delivery and Quick Commerce. But Swiggi’s strategy helps in better operational efficiency and cross-YouTilization of services.
What is the reason for falling share
From January 20, i.e. in the last six trading days, Swigi’s share price has fallen by 19%. The decline came after Jomato’s mixed performance in the December 2024 quarter (Q3Fy25). Jomato has hoped the damage in the Blinkit to continue in the near future, as they are accelerating the store expansion. Jomato has now set a target of 2,000 stores by December 2025, which was earlier in December 2026. However, analysts believe that this blockage in margin expansion is temporary.
In the September 2024 quarter, Swiggy recorded food delivery and 14.6% and 75.5% year-to-year (YOY) growth in Quick Commerce respectively. The performance was less than Jomato.
The take rates in the Quick Commerce segment improved the quarter-by-rate of 76 basis points (BPS), but it remained stable for food delivery. Swiggy guides that it can be profitable in adjustable ebitda on consolidated level by Q3Fy26. The benefits for the Quick Commerce segment are expected to be achieved by Q2Fy27.
However, analysts believe that Zomato will maintain a premium valuation due to better track records and performances.
In the December 2024 report, the brokerage firm reported that Swiggi could get a scale discount of 30-35% in business and about 20% discount in valuation. The reason behind this is that the damage in the Quick Commerce segment is stable at Rs 360 crore in Q2Fy25.
Analysts say that Swiggy may take two more years to reach the Break-Even at the adjustable Ebitda level. At the same time, the blinkit is already close to the break-building. The government is likely to increase competition due to the entry of e-commerce players. It will be important to see how fast Swigy can work towards profit in Quick Commerce.