Earnings Outlook
Swiggy's losses to widen in Q2 despite increase in revenue
This story was originally published at 16:12 IST on 25 October 2025
Register to read our real-time news.Informist, Saturday, Oct. 25, 2025
By Avishek Rakshit
KOLKATA – An increase in the monthly transacting user base, which led to a surge in gross order value, is expected to help food and grocery delivery platform Swiggy Ltd. report strong revenue growth in the September quarter. However, increasing depreciation and amortisation costs arising from new store openings for the grocery delivery business may keep the profitability under stress.
The consolidated net loss for Swiggy is expected to widen sharply to INR 11 billion in the September quarter from the net loss of INR 6.2 billion in the year ago quarter, according to the average of estimates from seven brokerages. The company had reported a net loss of around INR 12 billion in the June quarter. However, the consolidated revenue for the September quarter is expected to rise over 52% on year to nearly INR 55 billion, according to the average of estimates. On a sequential basis, the revenue is expected to rise by around 11%.
The highest estimate for Swiggy's net loss is INR 12.4 billion from Anand Rathi Share and Stock Brokers Ltd., while the lowest estimate is INR 5.8 billion from Kotak Securities Ltd. The highest estimate for revenue is INR 56.9 billion by ICICI Securities Ltd. and the lowest is INR 53 billion from Nirmal Bang Equities Pvt. Ltd.
Swiggy, which has a 43% market share in the online food delivery business, is expected to have registered a 4% sequential increase in its monthly transacting user base to 17 million users. As a result of increased users availing the platform, the company's gross order value is expected to have increased 18.6% on year and 5.5% on quarter, according to ICICI Securities Ltd.
The onset of the festival season in the September quarter also led to pent-up demand which boosted the gross order value in the food delivery business. Take rates, which is the commission that e-commerce platforms charge for the deliveries, is expected to have increased by 20 basis points on quarter to 22.4% further boosting the top line growth by around 7% on quarter, JM Financial Institutional Securities Pvt. Ltd. said.
For the Instamart business, JM Financial expects a gross order value will grow 23% sequentially, led by a robust 8% increase in the average order value. The average order value measures the average amount spent per transaction, whereas gross order value is the total revenue from all transactions before any deductions such as taxes or discounts.
JM Financial is of the view that order volumes would have grown 15% on quarter on account of the increase in the monthly transacting user base.
Swiggy is expected to report an earnings before interest, tax, depreciation, and amortisation loss of INR 8.4 billion, according to the average of estimates from six brokerages. Kotak Securities has the highest estimate for the EBITDA loss at INR 5.8 billion and brokerage Anand Rathi has the lowest at INR 10.4 billion.
The EBITDA loss from the quick commerce business housed under the Instamart business is expected to rise sharply as new store openings are likely to increase depreciation and amortisation costs and increased competitive intensity would impact margins.
The company is scheduled to detail its Jul-Sept earnings on Thursday. On Friday, shares of Swiggy ended at INR 424.90 on the National Stock Exchange, up marginally from Thursday. The shares are up over 8% since the company announced its June quarter earnings in July.
Of the 11 research reports on the company available with Informist, nine have a 'buy' rating on the stock at an average target price of INR 496. One brokerage each have a 'hold' and ‘sell' rating on the stock.
The following are the Jul-Sept earnings estimates for Swiggy from seven brokerages in descending order of the estimate of net loss in INR million:
Brokerage | Net sales (in INR million) | Net loss (in INR million) | EBITDA (in INR million) |
Anand Rathi Share and Stock Brokers Ltd | 56,301 | -12,350 |
|
Nirmal Bang Equities Pvt Ltd | 53,013 | -11,667 | -9,193 |
Elara Securities (India) Pvt Ltd | 53,718 | -11,634 | -9,063 |
ICICI Securities Ltd | 56,864 | -11,325 | -7,955 |
Motilal Oswal Financial Services Ltd | 54,639 | -11,258 | -10,445 |
JM Financial Institutional Securities Pvt Ltd | 56,114 | -10,383 | -7,833 |
Kotak Securities Ltd | 53,482 | -8,724 | -5,764 |
Average | 54,876 | -11,049 | -8,375 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
