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Swiggy shares extend gains, up nearly 10% ahead of Q2 earnings

03 Dec , 2024   By : Debdeep Gupta


Swiggy shares extend gains, up nearly 10% ahead of Q2 earnings

\Shares of Swiggy Limited surged almost 10 percent to Rs 542 in morning trade on December 3, extending gains for a second trading session in a row ahead of its second-quarter earnings scheduled later today. This will be the company's first-ever earnings as a listed player since its mega Rs 11,327-crore public offer last month.


While the company hasn't officially declared its Q2 figures, Prosus, one of the largest investors in the company, said in its half-yearly disclosures that Swiggy reported revenue of $750 million (around Rs 6,300 crore) in the first half of the financial year 2025 (H1FY25), up 40 percent from $536 million (about Rs 4,500 crore) recorded during the same period last year.


Yesterday, the company said it has expanded its 10-minute food delivery offering, Bolt, to over 400 cities and towns across India. Initially launched in Bangalore, Chennai, Hyderabad, New Delhi, Mumbai, and Pune, Bolt is now active in cities like Jaipur, Lucknow, Ahmedabad, Indore, Coimbatore, and Kochi as well, Swiggy said in a statement.


Last week, UBS initiated coverage on the counter with a 'buy' recommendation citing robust growth prospects for the company. UBS says that in the online food delivery (OFD) segment, Swiggy is narrowing the gap with Zomato in terms of margins and scale. Meanwhile, in the quick commerce (q-com) space, Swiggy has shown encouraging signs but still has areas for improvement. The international brokerage remains optimistic about Swiggy’s prospects, seeing significant growth potential in the evolving market.


At about 10 am, shares of the company were trading at Rs 507, higher by 3 percent from the last close on the NSE. Swiggy shares have gained 10 percent in the past week.

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