Swiggy
Swiggy shares sink 7% after Q3 loss widens despite 54% revenue surge
Mumbai/IBNS: Shares of Swiggy declined 7% on Friday after the food delivery and quick commerce major reported a wider consolidated loss for the third quarter of the ongoing financial year, media reports said.
Swiggy posted a consolidated net loss of ₹1,065 crore for the quarter, significantly higher than the ₹799 crore loss reported in the same period last year.
Despite the higher loss, the company reported strong revenue growth. Revenue from operations rose 54% year-on-year to ₹6,148 crore in the December quarter, driven by continued momentum in food delivery and quick commerce.
Brokerage reactions to the results were mixed, with several firms cutting target prices citing concerns over rising losses and near-term profitability.
Nomura lowered its target price on the stock to ₹546 from ₹560, while Morgan Stanley cut its target to ₹375 from ₹414. JP Morgan reduced its target price to ₹430 from ₹520.
Jefferies, however, maintained a Buy rating on Swiggy but trimmed its target price to ₹440 from ₹500.
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