Swiggy, one of India’s leading food delivery and quick commerce companies, has been under the spotlight in the stock market due to its recent downward trend in its share prices as it sees no sign of respite from heavy losses and dips.
Swiggy, one of India’s leading food delivery and quick commerce companies, has been under the spotlight in the stock market. Its shares have seen sharp price movements recently due to a mix of company-specific events and broader market conditions. As of May 14, 2025, Swiggy’s share price stands at ₹309.35, reflecting a decline of ₹1.20 or 0.39% for the day.
This article explores the reasons behind recent price fluctuations, financial performance, investor sentiment, and prospects.
Swiggy’s stock has been on a downward trend in recent weeks, falling more than 40% from its earlier 2025 highs. On May 13, the stock reached a 52-week low of ₹297. The sharp fall was largely triggered by the end of the six-month lock-in period for pre-IPO investors. This event made around 83% of Swiggy’s total shares available for trading on the open market.
As a result, a large number of early investors, including venture capitalists and institutional backers, began offloading their holdings to book profits or rebalance portfolios. This sudden increase in the number of shares being sold created selling pressure and pushed the price down significantly.
Swiggy recently announced its fourth-quarter results for FY25. The company reported a consolidated net loss of ₹1,081 crore, nearly double the ₹555 crore loss reported in the same quarter last year. However, revenue from operations showed healthy growth, rising by 45% year-on-year to ₹4,410 crore.
Much of this growth came from Swiggy’s quick commerce business, Instamart. The gross order value (GOV) for Instamart doubled to ₹4,670 crore during the quarter. This segment has become a major focus area for the company, reflecting rising demand for fast grocery deliveries and essential items.
While the revenue growth is encouraging, the increased spending on marketing, delivery infrastructure, and technology for Instamart has impacted the company’s profitability. Operating expenses have risen sharply as Swiggy continues to expand its reach in both tier-1 and tier-2 cities.
The sharp fall in share price following the lock-in expiry has created short-term negative sentiment around the stock. However, analysts remain cautiously optimistic. Leading brokerage firms believe the stock has long-term potential, especially given Swiggy’s dominant position in the food delivery market and growing presence in the quick commerce space.
One well-known brokerage firm has kept its “Buy” rating on the stock, revising its target price from ₹500 to ₹450. The revision reflects the current market volatility, but the firm remains confident about Swiggy’s ability to grow its revenues and reduce losses over time. With the current market price at ₹309.35, the stock offers potential upside for long-term investors if the company delivers on its growth roadmap.
Despite recent price drops, Swiggy continues to attract attention from high-net-worth individuals (HNIs) and institutional investors. In the March 2025 quarter, HNIs poured ₹760 crore into the company. This level of investment suggests that many sophisticated investors believe in Swiggy’s long-term story and are willing to absorb short-term losses for future gains.
Moreover, retail investors are keeping a close watch on Swiggy’s next moves, especially in terms of reducing operating losses and achieving break-even in its quick commerce division. The company’s success in scaling its operations efficiently will play a big role in shaping future investor sentiment.
Swiggy faces several hurdles in its path to profitability:
Intense Competition: In both food delivery and quick commerce, the company competes with strong players such as Zomato, Blinkit (owned by Zomato), Dunzo, and Zepto. Pricing pressure and discount strategies can erode margins.
High Operating Costs: Quick commerce demands rapid delivery, tight supply chains, and hyperlocal logistics. These require significant investment in warehousing, technology, and delivery staff.
Customer Retention: While customer demand is rising, retaining them in a competitive environment requires constant innovation, quality service, and consistent pricing.
Swiggy also has several strengths that could help it rebound and grow:
Large Customer Base: The platform serves millions of customers every month, giving it significant reach and brand visibility.
Diversified Business Model: Apart from food delivery, the company is expanding into groceries, daily essentials, and other convenience services.
Technology and Data: Swiggy uses advanced analytics and AI to optimize delivery times, personalize user experience, and manage inventory across Instamart.
Swiggy’s share price performance in May 2025 has been volatile, impacted by the expiry of the lock-in period, ongoing financial losses, and increased competition. However, the company’s strong revenue growth, especially in the quick commerce segment, indicates potential for long-term expansion.
The current market price of ₹309.35 reflects short-term uncertainty, but continued interest from institutional investors, a solid growth strategy, and strong brand equity may help Swiggy regain investor confidence over time. Market participants will be closely watching the company’s next earnings report, operational improvements, and progress towards profitability.