Swiggy share price falls over 4% ahead of Q3 results today; Should you buy or sell?

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Swiggy share price declined over 4% on Wednesday ahead of the announcement of its Q3 results today. Swiggy shares fell as much as 4.07% to a low of 416 apiece on the BSE.

Swiggy shares were listed on the Indian stock exchanges in November 2024 and this will be the first earnings release after the food delivery giant’s stock market debut. The stock has been witnessing high volatility since its listing.

On November 13, the shares of food delivery and quick commerce major Swiggy were listed at 420 on NSE, a premium of 7.7% over the issue price of 390. Meanwhile, on BSE, Swiggy stock was listed at 412, up 5.64% from the IPO price.

Swiggy shares then surged to a high of 617 apiece on December 23, 2024, but dropped significantly to a low of 389.25 apiece on January 28, 2025, slipping below its issue price.

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Here’s what to expect from Swiggy Q3 results today:

Swiggy Q3 Results 2025 Preview

Swiggy is estimated to witness a sequential improvement in its revenue during the third quarter of FY25, but its losses are expected to widen.

JM Financial expects Swiggy to report a net loss of 707.8 crore in the December quarter, 13.5% higher than 623.4 crore reported in the September quarter.

The brokerage firm expects revenues to rise 12% quarter-on-quarter (QoQ) to 4,034.7 crore from 3,601.5 crore.

“In Food Delivery, we forecast sequential GOV growth of 3.5% (+19.3% YoY). We expect take rates to expand to 22.3% in 3QFY25 versus 21.9% in 2QFY25. We expect Adj. EBITDA margin (as % of GOV) expansion of c.40 bps sequentially,” JM Financial said.

Also Read | Swiggy IPO: How investors justify risky pre-listing trading

For Instamart, the brokerage expects sequential GOV growth of 18.2%, led by a robust increase of 13% in order volumes (that in turn should be driven by MTU increase from 6.2 mn to 7.0 mn). Take-rates are estimated to improve to 14.9% from 14.5% in Q2. It sees contribution margin contracting to -3.6% (as % of GOV) versus -1.9% in Q2.

Brokerage firm Motilal Oswal (MOSL) estimates Swiggy’s GOV for food delivery and quick commerce businesses to achieve 20% and 100% YoY growth, respectively, with take rates of 22% and 14%, driving an overall revenue growth of 8.0% QoQ in Q3FY25.

Instamart is anticipated to grow 19% QoQ with an adjusted EBITDA of -10.0% for 3Q, while out-of-home consumption is anticipated to reach break-even with 19.3% QoQ revenue growth, according to MOSL’s estimates. 

“Food delivery’s adjusted EBITDA as a percentage of GOV is expected to improve by 20 bps QoQ to 1.8%. Instamart is projected to report a -2.2% contribution margin and -10.0% adjusted EBITDA margin in 3Q,” it said.

The brokerage firm expects the company’s net loss to widen to 700 crore from 620.5 crore QoQ, and revenue to increase to 4,201.8 crore from 3,891 crore.

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Should you buy Swiggy shares ahead of Q3 results today?

JM Financial has a ‘Buy’ rating on Swiggy shares with a target price of 550 apiece. Motilal Oswal remains ‘Neutral’ on the stock with a target of 520 per share.

On the technical front, Anshul Jain, Head of Research at Lakshmishree Investment and Securities reiterated caution on Swiggy shares ahead of Q3 results today.

“Swiggy’s stock surged from 400 to 600 levels in a sharp rally, only to nosedive back to 400, signalling weakness. The steep correction suggests nervousness ahead of its earnings report. Any negative surprise could lead to further punishment by the market. If Swiggy stock breaks below the crucial 400 level, a drop towards 335 appears likely,” Jain said.

Investors should tread cautiously as volatility remains high, and sentiment looks fragile in the near term, he added.

At 10:10 AM, Swiggy shares were trading 3.67% lower at 417.75 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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