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Informist, Thursday, Jan. 29, 2026

 

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--Swiggy: Current domestic shareholder base 47% 
--CONTEXT: Comments by Swiggy mgmt in post-earnings concall with analysts 
--Swiggy: Expect to spend more on warehousing capacities 
--Swiggy: Mkt irrationality impacting co growth, to impact in coming qtrs 
--Swiggy: Not going to throw good money for bad growth 
--Swiggy: Have headroom to up throughput 20-30% at current store capacities 
--Swiggy: To optimise customer acquisition expenditure 
 

 

By P. Madhu Kumar and Afra Abubacker

 

MUMBAI/NEW DELHI – As Swiggy Ltd.'s net loss increased in the December quarter, the company blamed market irrationality for impacting overall growth of entities in the food delivery and quick-commerce space. This irrationality, along with intense competition, is likely to continue in the coming quarters as well, with companies struggling to retain customers as they rapidly switch from one platform to another, the management said in a post-earnings conference call with analysts. 

 

"The competition that we saw started in fact from October itself...and we believe that it will remain at the same level. There are essentially new entrants in the market for also amping up the amount of money being spent on the consumer," the company said.

 

The management believes that irrationality and intense competition combined are leading to an unhealthy consumer growth in the market. Companies have seen growth in the consumer base, but the basket size remains the same, or even shrunk in size.

 

The company reported a net loss of INR 10.65 billion for the December quarter, slightly higher than analysts' expectations of INR 10.23 billion. This was mainly on account of a significant rise in total expenses during the quarter.

 

Despite growing competition, the company said it will not throw good money for bad growth and it will never compromise good growth for good margin as it is not going to be a sustainable advantage for the company in the future. Good growth, according to the management, is an increase in the customer base that keeps on coming back to use the platform looking past what other platforms are offering. "We believe that our way of approaching on what customers really require and making sure that we give that assortment is the way to the market leadership," the management added. It also plans to optimise customer acquisition expenditure.

 

The company will focus on spending more towards warehouse facilities in the upcoming quarters in comparison with dark store facilities to structurally improve their supply chain efficiencies. Swiggy's capital expenditure going forward will be towards expansion of dark store infrastructure and expansion of warehouse capacities.

 

Swiggy's domestic shareholder base currently stands at 47% and which the company was able to achieve through the qualified institutional placement, in which overall allocation to the domestic investors was significantly higher compared to the partner investors.

 

The management believes that in the near term, there is significant headroom for an increase of 20-30% in throughput at existing stores. The company is confident about its consumer inputs that are already in place and said it will not have the need to necessarily add more number of stores. The company will still continue its way forward towards the densification of stores, leading to a certain pace of store additions. 

 

On Thursday, shares of the company closed over 1% higher at INR 327.65 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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