Swiggy’s stock has faced a sharp decline following its aggressive expansion strategy and rising operational costs. Since its public listing on November 13, 2024, the stock initially surged by 58% from its offer price of ₹390 but has since slipped below this threshold. In 2025 alone, it has dropped by 37%, with a 19% decline following the announcement of its third-quarter results on February 5.
The food delivery and quick commerce company reported a widening net loss for the quarter, largely driven by increased capital expenditure on rapid expansion. Consolidated revenue grew 31.9% in the nine months leading up to December, slightly lower than the 32.4% growth recorded in the six months to September. However, total expenses escalated at a faster rate, rising 27.6% compared to 24.9% in the same periods.
Revenue deceleration was evident across Swiggy’s three key business segments—food delivery, supply chain and distribution, and quick commerce—which together contribute over 98% of its total revenue. While the food delivery segment’s operating profit surged over seven times year-on-year to ₹193 crore in the December quarter, quick commerce losses widened significantly to ₹528 crore, up from ₹310 crore a year earlier.
According to a report by Elara Securities, the profitability of Swiggy’s quick commerce segment was impacted by back-ended store additions, expansion into new geographies, and densification of existing locations. Analysts suggest that balancing aggressive expansion with profitability is crucial for Swiggy, especially in the face of growing competition.
Net losses increased to ₹2,035.6 crore in the nine months to December, compared to ₹1,789.9 crore in the same period last year. The company added 96 dark stores in the third quarter and another 86 in January as part of its Instamart expansion strategy.
Instamart remains Swiggy’s biggest investment area, with a projected market opportunity of $40-$50 billion (approximately ₹4 lakh crore) over the next three to four years. The division currently accounts for 14% of Swiggy’s consolidated revenue but continues to operate at a negative contribution margin, meaning its variable costs exceed sales.
Swiggy aims to turn profitable with a targeted EBITDA margin of 5% by the December 2025 quarter. However, with rising costs and ongoing expansion efforts, investors remain cautious about its short-term financial performance.