09 May , 2025 By : Debdeep Gupta
Swiggy shares dropped over 1.5 percent to trade at Rs 310 apiece on May 9. This comes before the food delivery major released its results for the January-March quarter of the financial year 2025. Its rival company, Eternal (Zomato), also saw a strong fall in its share price, plunging nearly 1.8 percent to trade at Rs 226 apiece.
The fall in Swiggy's share price comes as investors anticipate Q4 results similar to its rival, Eternal. The possibility of poor results may reflect a downturn in the sector, which in turn may have resulted in the drop in Eternal's share price as well. Notably, the two firms allegedly maintain a duopoly in the food delivery market.
Eternal (Zomato) Q4 FY25 results:
Eternal, which operates food delivery platform Zomato and quick commerce firm Blinkit, had reported a 78 percent YoY fall in net profit to Rs 39 crore for the Q4 FY25 on May 1. Its revenue from operations, however, rose 64 percent YoY to Rs 5,833 crore during the reported quarter.
The company closed its 15-minute food delivery service 'Quick' and home-style meal delivery service 'Everyday' as it couldn't see "the path to profitability in these without compromising on customer experience".
Additionally, Eternal's CFO, Akshant Goyal had acknowledged that the company is not focusing on short-term profitability but is looking to aggressively grow its market share amid heightened competition. "Competition in food delivery has always been high, and the intensity of it hasn’t changed in the last quarter. Our market share has been stable for the last few months, and we are hoping we can drive some share gain going forward," said Eternal Group CEO Deepinder Goyal.
Swiggy Q3 FY25 results:
Swiggy, which debuted on stock markets in 2024, saw its net loss widen 39 percent to Rs 799 crore in Q3 of FY25. Swiggy's revenue from operations rose 31 percent to Rs 3,993 crore in Q3FY25 as against Rs 3,049 crore in Q3FY24.
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