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Quick-commerce margins, execution to be key for gains in Swiggy
Business Standard
|May 13, 2025
Even as Swiggy reported a satisfactory revenue growth, the Q4 losses were higher than consensus due to the quick-commerce (qcom) business.
Food delivery gross merchandise value (GMV) grew at 17.6 per cent year-on-year (Y-o-Y) and operating profit was at ₹210 crore, above consensus.
Quick-commerce GMV doubled Y-o-Y, led by higher monthly transacting users (MTUs), but margins dipped and Q4's adjusted operating loss for qcom was ₹840 crore (-18 per cent margin on gross order value or GOV).
The management indicated that the qcom segment saw peak losses in Q4 and there will be progressive improvement. Competition has not intensified.
Overall, Q4 revenues were up 10 per cent quarter-on-quarter (Q-o-Q) but higher operating expenditure (up 30 per cent Q-o-Q) led to losses at the operating level growing 33 per cent Q-o-Q to ₹960 crore.
The dark store count rose by 316 new stores during Q4 taking store count to 1,021. Net losses were ₹1,080 crore in Q4 (₹790 crore in Q3).
The pre-initial public offering (IPO) shareholder lock-up is due for expiry, which may add to volatility.
This story is from the May 13, 2025 edition of Business Standard.
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