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Business Recorder
4 hours ago
- Business
- Business Recorder
India's online delivery platform Swiggy posts wider quarterly loss on higher expenses
Indian online delivery platform Swiggy posted a wider quarterly loss on Thursday, as rising investments in its quick-commerce arm, Instamart, continued to weigh. Its consolidated net loss widened to 11.97 billion rupees ($136.68 million) for the quarter ended June 30, from a loss of 6.11 billion rupees a year ago. Swiggy is pouring money into expanding its quick-commerce arm, Instamart, with major investments going to set up stores, strengthening warehousing and logistics, and offering aggressive discounts to attract users. The decade-old Swiggy, which enjoys a duopoly in the food delivery business with Eternal's Zomato, continues to spend on its core food delivery business through marketing, platform upgrades, and loyalty programs like Swiggy One, as it fights to maintain its edge in the competitive delivery market. Instamart, which delivers everything from pulses to purses in minutes, is up against stiff competition from Eternal's Blinkit, Zepto, Tata-backed BigBasket, and Amazon , all racing to win the quick-commerce game by prioritizing rapid expansion over profits. Swiggy's revenue surged 54% to 49.61 billion rupees in the quarter ended June 30. Its consolidated expenses jumped about 60% in the quarter to 62.44 billion rupees, owing to higher spends on advertising.
Reuters
21-07-2025
- Business
- Reuters
India's Zomato parent Eternal posts 70% jump in quarterly revenue; shares climb to more than 5-month high
July 21 (Reuters) - Indian online delivery firm Eternal ( opens new tab posted a more than 70% jump in first quarter adjusted revenue, powered by a surge in orders at its quick commerce arm, Blinkit, sending shares climbing 7.5%. The quick-commerce industry in India has grown fiercely competitive even as it records robust growth, with players such as Eternal, Swiggy ( opens new tab and start-up Zepto battling for greater market share. Blinkit, which delivers everything from groceries to electronics in under 10 minutes, is widely seen as the segment leader, despite deep-pocketed rivals such as Tata-backed BigBasket, Walmart-owned Flipkart and Amazon (AMZN.O), opens new tab stepping up their presence. Eternal's revenue from operations rose to 71.67 billion rupees in the first quarter from 42.06 billion rupees a year ago. Its stock climbed as much as 7.5% to 277 rupees after the results, their highest level since Feb. 3, before closing 5.64% higher. However, the company reported a 90% slump in consolidated net profit to 250 million rupees ($2.90 million), weighed by higher costs at Blinkit. Quick commerce players have been rolling out steeper discounts and subsidised or free deliveries while rapidly expanding their network of "dark stores" or distribution hubs to fend off competition, squeezing their margins. Eternal's overall expenses jumped nearly 79% to 74.33 billion rupees. ($1 = 86.2775 Indian rupees)
Mint
23-06-2025
- Business
- Mint
Newly listed Aditya Birla Lifestyle aims to invest ₹300 crore every year
Mumbai/ Bengaluru: Newly listed Aditya Birla Lifestyle Brand Ltd is betting on its multi-brand portfolio to double its revenue and improve profitability threefold in the coming years, according to a senior executive. 'We plan to invest ₹300-odd crore every year, a large part of it will go into the expansion of the retail network," said Ashish Dikshit, managing director of Aditya Birla Lifestyle Brands Ltd (ABLBL), during the company's listing on stock exchanges. It was spun off from Aditya Birla Fashion and Retail Ltd. Shares of ABLBL fell 4.98% to ₹159.40 on Monday compared with a 0.56% decline in Nifty 50. Read more: Apparel retailers reset their summer calendar with early end-of-season sales as consumer spending cools ABLBL has a retail presence of more than 3,250 stores, with 70% of the outlets run by franchisees under an asset-light model. Retail contributes to 60% of ABLBL's revenue, followed by e-commerce at 13-14%, and the rest comes from exports and tie-ups with departmental stores, according to an executive privy to the information. Post-demerger strategy Aditya Birla Fashion demerged its Madura Fashion & Lifestyle business into ABLBL to sharpen operational focus and unlock shareholder value, according to the company's information memorandum. The move, formalised through a scheme of arrangement, aims to streamline the group's fashion portfolio by separating its lifestyle brands, including Louis Philippe, Van Heusen, Allen Solly and Peter England, into an independent company. This structure enables each business to pursue distinct growth strategies and tailor capital allocation. Post demerger, ABLBL is expected to deploy cash flows more efficiently, expand its brand portfolio with agility and engage more effectively with targeted investor segments. ABLBL now plans to scale up to 4,500 stores by FY30 and expand average store sizes from 1,400 sq. ft. to 2,000 sq. ft., growing total retail area by 50%. It aims to exceed 1,000 stores each for its four flagship brands, Louis Philippe, Van Heusen, Allen Solly and Peter England. Over 580 of its stores already serve small towns, and more than half its revenue comes from consumers under 35, according to a 23 June note by Motilal Oswal Financial Services Ltd. The bullish outlook mirrors Boston Consulting Group's estimates that India's overall retail market is likely to grow to $2 trillion within the next decade, up from $820 billion in 2023. However, the competition in India's fast-growing apparel industry is rising. Tata-backed Trent Ltd, which aims to grow its value brand Zudio by 25% in the coming years, reaffirming chairman Noel Tata's vision of expanding the company 10 times its current size. The brand added 244 stores in FY25 alone and now has 765 outlets across 235 cities. Read more: Aditya Birla Group has chalked out an aggressive five-year plan for fashion, lifestyle units ABLBL's fashion format also competes with Ambani-backed Reliance Retail, which has ₹3.3 lakh crore in revenue and has a presence of over 19,000 stores, with brands like Trends, Azorte, Yousta, and partnerships with global labels such as GAP, Superdry, and Balenciaga. Aditya Birla Lifestyle wants to build India's first billion-dollar brands over the next decade. While the company's larger brands including Louis Philippe, Van Heusen, and Allen Solly are already in the ₹2,000–2,500 crore range, the newer additions of Reebook, Van Hausen and American eagle are poised to 'scale rapidly in the large, under-penetrated and high-growth territories spaces of innerwear, activewear and casuals," said Dikshit. The company is not looking at any acquisitions in the immediate future, citing reasons of an already diverse portfolio, but remains open to inorganic growth opportunities in the next four to five years. The company is targeting a revenue growth of around 10% over FY25–28, wrote analysts at Motilal Oswal in the note. 'ABLBL is the largest player in branded apparel by revenue and store footprint, but its execution has been patchy in recent years," MOSL said. The company aims to add 250+ stores annually and aims to double revenue by FY30. It also expects to become debt-free and start dividend payouts by FY28. According to Motilal Oswal, both gross and EBITDA margins are projected to rise by 80–140 basis points between FY25 and FY28. The analyst report flags a few areas of concern regarding the newly listed demerged entity. Muted demand trends, slower momentum in scaling up newer brands such as Reebok and American Eagle, and rising store operating costs could pose challenges. In addition, investors who entered during the demerger or recent fundraising by Aditya Birla Fashion, may choose to exit, creating short-term pressure on the stock. Read more: Inside India's underground network of fake e-commerce reviews
Mint
19-06-2025
- Business
- Mint
Trent sticks to the long-term goal of growing 25% every year
Tata group-backed Trent Ltd remains committed to the long-term target of growing 25% annually, focusing on brands such as its value fashion format Zudio, opening stores in micro-markets, and expansion into new categories, the retailer told analysts at its investor day. Trent aims to remain relevant in the fashion business by using Zudio as its primary growth engine, according to reports by multiple brokerages. It seeks to operate in categories with repeat consumer purchases instead of chasing metrics like like-for-like (LFL) sales growth, store count growth, and total addressable market (TAM), analysts at Nuvama Institutional Equities said in a report released on Thursday following Trent's 18 June investor day meet. 'There is no point driving LFL via discounts or driving price-led growth at the cost of volumes (and losing relevance) or chasing TAM by adding more and more categories. Trent operates under a distinct set of constraints compared to other brands," the report said. It added that the retailer's commitment to no discounting, maximizing full-price sales, avoiding advertising, and exclusively using private labels significantly narrows its strategic options. Trent is aggressively pursuing growth, aligning with Noel Tata's vision, which is to grow the retailer 10x its current size. Noel serves as the chairman of both Trent and Tata Trusts. 'Two years ago, I had envisioned that Trent would one day be 10 times bigger. Since then, the revenue run rate has doubled. The headroom for growth remains enormous, and I am confident that we will reach this milestone in the not-too-distant future,' he said in the annual letter to its shareholders earlier this month. Trent reported revenues of ₹ 17,134.6 crore in 2024-25, up 38.4% year-on-year. Profit for the fiscal year grew 3.85% on-year to ₹ 1,534.41 crore. Trent operates 1,091 stores as of 31 March 2025. Zudio, its fast-growing value fashion chain, led the expansion with 244 new outlets, increasing its presence to 765 stores across 235 cities, including its first two overseas stores in 2024-25. The brand, launched in 2016, crossed a billion in sales after nearly a decade of operations, according to the company's annual filing. 'Zudio has the potential to match Westside's profitability profile over the medium term, given improving unit economics and scale benefits,' Nuvama said in its post-earnings call report. Westside, the company's lifestyle and apparel brand, ended the year with 248 stores. Trent's apparel division, which includes brands such as Zudio and Westside, contributed about 80% of the company's overall revenue. The Tata-backed company is aiming for significant growth in this segment without specifying a timeline. The stock has rallied by over 700% over the last five years on BSE. India's overall retail market is projected to grow to $2 trillion within the next decade, up from $820 billion in 2023, according to estimates by Boston Consulting Group (BCG). In fashion and apparel, Trent's formats compete with the likes of Max Fashion (Landmark Group), V-Mart Retail, Reliance Retail's Azorte, Aditya Birla Fashion and Retail Ltd's Pantaloons, and Style Up, among others. Trent largely operates in the value-mid priced segment in apparel, footwear, and home goods. It also operates Zara (fashion retail) and Star (food and grocery chain) stores in India. Despite a six-fold jump in revenues during FY19-25, management indicated that Trent's share in the country's fashion and lifestyle retail industry remains in low single-digits, analysts at Motilal Oswal Financial Services said. However, the company believes there is still a 'long runway' for growth and aims to grow at 25% annually over the longer term through a multi-brand, cluster-based approach to increase its market share in key micro-markets, they added. It is looking to ramp up its presence in categories such as beauty through Zudio Beauty; it recently launched its range of lab-grown diamonds under the brand 'Pome'. 'We continue to like Trent for its robust footprint additions, strong double-digit growth, long runway for growth in Star (presence in just 10 cities), and potential scale-up of new categories,' they said. The brokerage reiterated a 'buy' rating on the stock while keeping its FY26-27 estimates unchanged. Meanwhile, Trent remains 'bullish' on the growth opportunity in the food and grocery segment via its Star format but will grow 'sensibly', focusing on the right economics and driving a greater share of its own brands. Star Bazaar operates via Trent Hypermarket Pvt. Ltd, a joint venture with British retailer Tesco PLC. Star Bazaar experienced a 25% on-year revenue growth during 2024-25, contributing approximately 15.75% of Trent's consolidated revenue. This is in contrast to its larger rival, Avenue Supermarts, which operates DMart. Avenue Supermarts generated ₹ 59,358 crore in revenue, with 57.7% coming from food, 20% from fast-moving consumer goods (FMCG), and 22.3% from general merchandise and apparel. These segments compete directly with Trent's value fashion and daily essentials offerings. Trent's push comes as DMart faces a slowdown in its food and FMCG segments, which together contribute about 77.4% of the company's overall revenue to rising competition from quick commerce players such as Swiggy, Zomato, and Zepto. DMart is in the midst of a leadership transition. In February 2026, Anshul Asawa, the designated chief executive, will succeed Neville Noronha. However, building scale in the Star Bazaar segment would be a 'long-term process', potentially spanning decades, said analysts at Nuvama. Meanwhile, the company emphasized its focus on prioritizing growth in India and on selling products that customers buy repeatedly. 'Unlike other retailers' obsession with volume, Trent's strategy is rooted in brand equity, customer experience, and staying relevant. The Indian market is a top priority, with most operations and the supply chain rooted domestically, with limited international presence (Zudio in Dubai),' analysts at Jefferies said in a separate report following the investor meet. Trent is a structural story on the growing organized apparel market in India, they added. However, expensive valuation keeps us on the sidelines. In the base case, Jefferies expects a compound annual growth rate of 35% in standalone sales over FY25-28E.
Time of India
11-06-2025
- Business
- Time of India
BigBasket to launch 10-minute food delivery across India by March 2026, executive says
HighlightsIndia's BigBasket plans to launch 10-minute food delivery services nationwide by the end of fiscal 2026 to compete in the rapidly growing $7.1 billion quick-commerce market. The grocery giant aims to increase its dark store count from approximately 700 to between 1,000 and 1,200 by the end of 2025, using these locations to expedite deliveries. BigBasket will offer a menu featuring items from Starbucks and Qmin, the food arm of Indian Hotels, while avoiding partnerships with external restaurants. India's BigBasket plans to roll out 10-minute food delivery services nationwide by the end of fiscal 2026 as competition intensifies in the $7.1 billion quick-commerce space, its executive told Reuters on Tuesday. The Tata-backed grocery giant will take on established players such as Swiggy 's Snacc, Blinkit's Bistro and Zepto Cafe, which already deliver coffee and ready-to-eat snacks in less than 15 minutes. BigBasket is targeting customers of the existing food delivery firms such as Zomato and Swiggy while also unlocking a new pool of customers, co-founder Vipul Parekh told Reuters. It plans to use dark stores to fuel the service, Parekh added, extending its foothold in India's booming quick-commerce market, which Blume Venture's Indus Valley report calls the " fastest-growing industry segment ever." Dark stores are small warehouses in densely populated neighbourhood buildings, where delivery partners, typically two-wheeler riders, pick up groceries or food for delivery. BigBasket, which brought online grocery delivery service to India in 2011, aims to increase its dark store count from about 700 currently to 1,000-1,200 by the end of 2025. Following a pilot run that began a month ago in the southern city of Bengaluru, the food delivery service will now be expanded to 40 dark stores by July-end, Parekh said. Currently, about 5%-10% of BigBasket's customers who are offered the service are clubbing quick-food items with their normal online orders, but this is expected to grow further, he added. The menu will comprise items from coffee chain Starbucks and Indian Hotels' food arm Qmin, both part of the Tata group in India. No external restaurants will be partnered with, the firm said. Meanwhile, Parekh dismissed media reports of BigBasket seeking external investors for fundraising and reiterated the company's plan to go public within the next 18-24 months. "One of the advantages we have is, being a part of Tata Group, you have enough internal capital available."
