Swiggy Achieves ₹44.1 Billion Revenue in Q4FY25; ICICI Securities Gives 'BUY' Rating with 136% Return Potential.
Swiggy, India's leading online food delivery platform, has announced its fourth-quarter (Q4FY25) financial results. The company demonstrated b performance in some areas, while facing minor challenges in others. Despite this, brokerage firm ICICI Securities believes Swiggy's stock holds significant potential, projecting a remarkable 136% return on its shares.
Swiggy's Q4FY25 Performance
Swiggy achieved a total revenue of ₹44.1 billion in the fourth quarter, a 10.4% increase from the previous quarter and a 44.8% increase year-on-year. This growth is undoubtedly a positive sign for the company, indicating expansion in its business. However, the company incurred an EBITDA loss of ₹9.6 billion, compared to ₹7.3 billion in the previous quarter. Despite this, the loss size was relatively controlled and can be considered in the context of the company's long-term growth trajectory.
Growth in Food Delivery and Quick Commerce
Swiggy's food delivery sector Gross Order Value (GOV) stood at ₹73.5 billion in the fourth quarter, a slight 1.2% decrease from the previous quarter but a 17.6% increase year-on-year. While revenue saw marginal fluctuation, the sector demonstrates stability for the company. On the other hand, the quick commerce segment exhibited robust growth. Swiggy's quick commerce GOV increased by 19.5% to ₹7.3 billion, a 21.6% rise compared to the previous year. This segment represents a rapidly expanding market for Swiggy, offering significant potential for future gains.
Swiggy's New Initiatives: Snacc and Pyng
Swiggy has launched new projects like Snacc and Pyng, signifying a new direction for the company. These projects currently show a minor loss, as they are in their testing phase. However, the company anticipates improvements and profitability in these areas in the future.
ICICI Securities' 'BUY' Rating on Swiggy
Considering Swiggy's b performance and future prospects, ICICI Securities has issued a 'BUY' recommendation for Swiggy's shares. The brokerage has projected a target price of ₹740, which is 136% higher than the current market price (CMP) of ₹313. They believe Swiggy is poised to deliver ber results in the coming period, leading to a significant rise in its share price.
