Swiggy shares tumbled over 7 per cent on Tuesday, May 13, to a record low of Rs 297 on the BSE as the six-month lock-in period for pre-IPO shareholders ended. The expiry, which unlocked nearly 189.75 crore shares, is equivalent to 83 per cent of the company's total shareholding. This may have sparked a wave of selling pressure amid a spike in trading volumes. Nearly four crore shares were traded during the period. Although a lock-in expiry doesn't compel investors to sell immediately, the sudden increase in tradable shares often leads to heightened volatility and price correction, which played out sharply in this session. The unlocked shares were estimated to be worth around Rs 62,000 crore.
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Swiggy share price track
Swiggy's share price was trading in the red, down 4.8 per cent at Rs 304.85 on May 13, at 11:23 am, on NSE.
Swiggy stock price has declined by 42.72 per cent on a year-to-date (YTD) basis. Additionally, Swiggy share price has plummeted by 6.84 per cent in one month.
This stock slump came on the heels of a disappointing set of financials for the March quarter. Swiggy's consolidated net loss surged to Rs 1,081.18 crore in Q4FY25, almost double the Rs 554.77 crore loss reported in the same period last year. While revenues grew 44.8 per cent year-on-year to Rs 4,410 crore, margin pressure persisted, primarily due to Instamart's underwhelming performance. According to an analysis by JM Financial, Swiggy's overall EBITDA loss widened to Rs 961.8 crore in Q4FY25, up from Rs 725.7 crore in the previous quarter. This deterioration resulted primarily from inflated costs in the quick-commerce sector and a rise in ESOP costs.
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Despite the strong growth of Swiggy's food delivery business, which recorded a 17.6 per cent year-on-year increase in the value of orders to Rs 7,347 crore and a rise in the number of monthly transacting users to 15.1 million, the gains were wiped out by rising losses in Instamart.
Though Instamart's gross order value doubled to Rs 4,670 crore, it continued to trail its peers in profitability and scale. JM Financial noted that the business's contribution margin weakened further to a decline of 5.6 per cent, with adjusted EBITDA plunging to Rs 840.6 crore, a 45 per cent jump in losses from the prior quarter. Order volumes rose 21 per cent sequentially, but average order values slipped slightly, and aggressive store expansion diluted operating efficiency. By the end of March, Instamart had expanded to 124 cities and ramped up its dark store footprint to 1,021, but many of these stores were still in early-stage ramp-up, affecting overall productivity.
