The Swiggy share price has seen a sharp decline, dropping 3% below its IPO issue price of ₹390, closing at ₹380 on the BSE. Despite a 31% YoY revenue growth, Swiggy’s Q3 FY25 loss widened to ₹799 crore, raising concerns among investors.
Swiggy Stock Performance & Target Price
- Current Market Price: ₹383.80
- Target Price (ICICI Securities): ₹740
- 52-Week High/Low: ₹420 / ₹365
- Q3 Revenue: ₹36.0 billion (+10.9% QoQ, +31.0% YoY)
- EBITDA Loss: ₹7.3 billion (-18.2% margin)
- Net Loss: ₹8.0 billion
Analysts at ICICI Securities, Kotak, and UBS remain bullish on Swiggy, expecting 18%-60% upside from current levels. However, concerns over higher marketing costs and quick commerce expansion have led JP Morgan and Motilal Oswal to slash their price targets.
Why is Swiggy Stock Falling?
- Increased Competition: Zomato and Blinkit’s aggressive market expansion is putting pressure on Swiggy Instamart margins.
- Rising Losses: Quick commerce losses widened, impacting overall profitability.
- Operational Costs: Expansion of 100+ dark stores by March 2025 is adding to expenses.
Is This an Entry Point for Investors?
Many brokerages believe Swiggy share price correction presents a buying opportunity, given its strong food delivery segment and long-term growth potential. The company aims to achieve break-even in quick commerce within a year, which could drive future stock gains.