Swiggy Shares Rally Ahead of Q2 Earnings

Shares of Swiggy Limited surged nearly 10% to ₹542 in morning trade on December 3, continuing their upward momentum for the second consecutive session. The rally comes as investors anticipate the company’s first quarterly earnings report as a publicly listed entity. Swiggy debuted on the stock market last month with a ₹11,327-crore IPO.

At around 10 am, Swiggy's stock was trading at ₹507 on the NSE, up by 3% from the last close, with a 10% gain over the past week.

Revenue Growth Revealed by Prosus

While Swiggy has not yet officially disclosed its Q2 FY25 financials, Prosus, a key investor, revealed in its half-yearly report that Swiggy achieved $750 million (₹6,300 crore) in revenue for the first half of FY25 (H1FY25). This marks a 40% growth compared to $536 million (₹4,500 crore) during the same period last year.

Expansion of 10-Minute Delivery Service

Swiggy announced on December 2 that it has expanded its 10-minute food delivery service, Bolt, to over 400 cities and towns across India.

• Initially launched in Bangalore, Chennai, Hyderabad, New Delhi, Mumbai, and Pune, Bolt is now operational in cities such as Jaipur, Lucknow, Ahmedabad, Indore, Coimbatore, and Kochi.
• This expansion is part of Swiggy’s strategy to capture a larger share of India’s evolving online food delivery (OFD) market.

UBS Optimistic on Swiggy’s Prospects

Last week, UBS initiated coverage of Swiggy with a 'buy' recommendation, citing strong growth potential:

• In the online food delivery (OFD) segment, Swiggy is closing the margin and scale gap with Zomato, its main competitor.
• In the quick commerce (q-com) segment, Swiggy has shown promising growth but faces challenges in achieving full-scale efficiency.

UBS remains optimistic about Swiggy's future, highlighting its strong revenue trajectory and market expansion efforts.

Market Momentum and Future Outlook

The strong investor interest reflects confidence in Swiggy’s ability to deliver sustainable growth, supported by its innovative services like Bolt and its strong presence in the food delivery and quick commerce segments.

• With the company's first Q2 earnings report as a listed entity scheduled later today, analysts and investors are keenly watching Swiggy's financial performance and operational updates.
• The expansion of Bolt underscores Swiggy's focus on customer satisfaction through faster deliveries, potentially driving further growth in customer acquisition and retention.

Conclusion

Swiggy’s shares have seen a significant rally in anticipation of its earnings and the rapid expansion of its Bolt delivery service. With robust revenue growth, a strategic expansion plan, and increasing investor confidence, Swiggy is well-positioned to strengthen its leadership in the online food delivery market.
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