Swiggy's Q4 FY25 financial results have sparked mixed reactions among investors and analysts. While the company demonstrated robust revenue growth, a significant widening of its net loss has raised concerns about its path to profitability. The food delivery platform reported a consolidated net loss of ₹1,081.18 crore for the quarter ended March 31, 2025, nearly double the ₹554.77 crore loss from the same period last year. However, revenue from operations surged 44.8% year-on-year to ₹4,410.02 crore, driven by growth in both its food delivery and quick commerce (Instamart) segments.

Key Financial Highlights:

• Revenue Growth: Consolidated revenue from operations jumped 44.8% YoY to ₹4,410.02 crore in Q4 FY25. For the full fiscal year FY25, revenue reached ₹15,227 crore, a 35% increase YoY.
• Widening Losses: Net loss nearly doubled to ₹1,081.18 crore in Q4 FY25 from ₹554.77 crore in Q4 FY24. The full fiscal year FY25 saw a net loss of ₹3,116.79 crore, compared to ₹2,350.24 crore in FY24.
• Gross Order Value (GOV): GOV surged 40% YoY to ₹12,888 crore in Q4 FY25, fueled by strong performance across its business verticals.
• Instamart's Growth & Impact: Quick commerce revenue almost doubled to ₹689 crore for Q4 FY25 from ₹320.7 crore in Q4 FY24. Instamart's GOV growth zoomed by 101% YoY. However, aggressive investments in Instamart's expansion, including adding 316 dark stores, significantly impacted overall profitability.
• Food Delivery Performance: The food delivery business reported revenue of ₹1,629.3 crore for Q4 FY25, up 18.4% Y-o-Y. The food delivery segment's GOV grew 17.6% year-on-year.

Factors Influencing Performance:

• Increased Spending on Instamart: The primary driver behind the widening losses was increased spending on Swiggy's quick commerce business, Instamart, amid intensifying competition from players like Blinkit and Zepto.
• Investments in Customer Acquisition and Dark Stores: Swiggy ramped up investments in customer acquisition, dark store expansion, and marketing to defend its market share, resulting in higher operating expenses.
• Competitive Landscape: Swiggy faces intense competition in both the food delivery and quick commerce segments.
• Expansion into Smaller Cities: Swiggy plans to expand its presence in smaller cities to tap into new customer bases and increase market share.

Analyst Perspectives:

Analysts have expressed varied opinions on Swiggy's Q4 FY25 performance and future prospects. Some remain optimistic, citing the company's strong growth potential, particularly in the quick commerce segment. They anticipate improved margins as newer dark stores scale and operational efficiencies increase. For instance, UBS has maintained a 'buy' rating with a target price of Rs 465, expecting margins to improve as newer stores scale with more daily orders.

However, other analysts are more cautious, pointing to the sustained losses in quick commerce and the intensifying competition. Ambit maintained a 'sell' rating and cut the target price to Rs 292 from Rs 310, citing muted food delivery growth and mounting losses in quick commerce. Concerns remain about Swiggy Instamart lagging behind Blinkit on key performance metrics, despite a larger footprint.

Investment Considerations:

Despite the widening losses, Swiggy's revenue growth and expansion into new markets indicate significant potential. The company's focus on innovation, such as 15-minute deliveries and cloud kitchens, could drive future growth.

However, investors should also consider the risks associated with the company's aggressive expansion strategy and the intense competition in the quick commerce space. The path to profitability remains uncertain, and Swiggy needs to demonstrate improved cost efficiency and financial discipline to attract long-term investors.

Several brokerages have weighed in on Swiggy's investment potential. JP Morgan initiated coverage with an "overweight" rating, highlighting the company's strong potential in food delivery and quick commerce. Citi initiated coverage with a 'buy' rating and a target price of Rs 480, citing significant improvements in the company's execution across both food delivery and quick commerce. Jefferies has assigned a 'hold' rating to Swiggy, setting a price target of ₹400, while highlighting concerns over Swiggy's smaller scale and the intensifying competition in the quick commerce space.

Ultimately, whether to "bet" on Swiggy depends on an individual investor's risk tolerance and investment horizon. Investors who believe in the company's long-term growth potential and are willing to weather short-term losses may find Swiggy an attractive investment. However, those seeking immediate profitability and lower risk may want to remain cautious.