Swiggy Share Price Dropped 4% Following The Announcement of Q3

Swiggy's share price dropped over 4% on February 5, just hours before the company announced its Q3 results for the current fiscal year. This movement has left investors and market watchers eager to understand the implications of the upcoming earnings report.

Market Performance: Swiggy Shares Experience a 4% Decline

Swiggy's stock took a hit in early trade on February 5, with the share price dropping 4.35% to an intraday low of ₹415.15 on the NSE. 

The delivery volume for Swiggy was notably high, with shares being exchanged. This decline comes ahead of Swiggy's Q3 results, which are expected to be released after market hours.

Swiggy's Performance Compared to Moving Averages

Swiggy's share price is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This trend highlights the stock's downward trajectory over the short and long term, signalling bearish sentiment among traders and investors.

Additionally, the delivery volume saw a noticeable increase. On February 4, Swiggy's delivery volume was 34.76 lakh, a 13.03% rise compared to the 5-day average. This surge in trading activity indicates heightened investor interest ahead of the quarterly results.

Swiggy's Financial Highlights

Q1 FY25 Performance

Swiggy reported revenue of ₹3,222.2 crore during Q1 FY25. However, the company also posted significant losses, amounting to ₹611 crore, for the same period.

In comparison, Zomato, its primary competitor, recorded a higher revenue of ₹4,799 crore during the September quarter, alongside a profit after tax of ₹272 crore. This stark contrast underscores the competitive pressure Swiggy faces in the food tech and grocery delivery space.

Q2 FY25 Revenue Growth

For the July-September quarter (Q2 FY25), Swiggy reported revenue of ₹3,601.5 crore, a 30% increase from ₹2,763.3 crore during the same period last year. According to regulatory filings, this growth was attributed to increased transacting users. Despite the revenue growth, Swiggy's losses reduced marginally by 5%, from ₹657 crore in Q2 FY24 to ₹625.5 crore in Q2 FY25.

Summary

The 4% drop in Swiggy's share price ahead of its Q3 results reflects cautious investor sentiment. While the company has shown impressive revenue growth in the past quarters, the persistent losses and competitive landscape remain areas of concern.

The market will closely watch Swiggy's Q3 performance to gauge its ability to navigate challenges and improve its financial health.