Swiggy Records Strong Revenue Growth Despite Wider Losses; Analysts Weigh Investment Potential

Online food delivery platform Swiggy reported a significant rise in revenue in the April–June 2025 quarter, but widening losses have tempered investor enthusiasm. The company’s consolidated revenue rose by 54% year-on-year to ₹4,961 crore, fueled by strong performance in both its food delivery and quick-commerce segments. However, Swiggy’s net loss doubled to ₹1,197 crore, up from ₹611 crore in the same period last year, largely due to continued investments in its Instamart vertical.

Swiggy’s core food delivery business delivered a robust 18.8% year-on-year growth, with Gross Order Value (GOV) reaching ₹8,086 crore. Its contribution margin stood at 2.4% of GOV, though weighed down by seasonal expenses such as employee appraisals and salary hikes. In contrast, Instamart, its grocery delivery service, doubled its GOV over the year, with a 25.6% increase in average order value. However, it continues to operate at a steep loss, with adjusted EBITDA margins around –16%.

Analysts remain cautiously optimistic. Jefferies upgraded Swiggy to a ‘Buy’ rating, setting a target price of ₹500, citing signs of bottoming-out losses and long-term growth in food delivery. Motilal Oswal revised its target to ₹450 but maintained a ‘Neutral’ stance, pointing to stiff market competition.

Notably, Swiggy’s growth in food delivery outpaced rival Eternal (Zomato) in recent quarters, although the company’s aggressive quick-commerce expansion continues to impact overall profitability. Investors are now closely watching Swiggy’s path to break-even, especially with an IPO reportedly on the horizon.