Swiggy Q4 Preview: Revenue growth seen strong, but losses to continue
ADVERTISEMENT The company's consolidated revenue is projected to rise 26% year-on-year (YoY), supported by a sharp increase in order volumes for both food delivery and Instamart. Meanwhile, losses are likely to widen up to Rs 1,031 crore.
The company's aggressive focus on customer acquisition, coupled with rising delivery and promotional costs, is expected to impact profitability. Swiggy's operational metrics in the quarter may also reflect the impact of seasonal demand, with an uptick in food delivery orders but at a high customer acquisition cost.
According to Motilal Oswal, Swiggy is likely to report a revenue of Rs 4,227 crore, driven by robust order growth in its food delivery business. However, the brokerage expects the company's losses to widen as a result of higher discounts, increased delivery costs, and elevated marketing expenses."Key factors to monitor include Instamart's GOV and AOV growth, dark store additions, and margins. FY26 absolute loss has been revised to Rs 3,750 crore from Rs 1,450 crore, driven by lower adjusted EBITDA in QC due to dark store expansion," the brokerage said.Kotak Institutional Equities is relatively less optimistic, forecasting a slightly lesser revenue of Rs 4,218 crore. The brokerage
ADVERTISEMENT is modeling 20 bps quarter-on-quarter expansion in consolidated margins of food delivery business to 7.6% in 4Q."Coupled with GMV increase, this will result in 2.6% EBITDA margin as % of GMV for this segment. We expect EBITDA loss of Rs 870 crore for the Instamart business, sharply higher QoQ, as we model losses from new stores as well as higher competitive intensity," it said.
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