Mumbai, May 29 : Swiggy's stock has taken a sharp hit in 2025, falling by 41 per cent, so far, this year and trading below its IPO listing price since February 6.

The drop reflects growing investor concerns over widening losses, rising competition, and uncertainty around the company's path to profitability.

In the January-March quarter (Q4) of FY25, Swiggy reported a net loss of Rs 1,081 crore, a significant downward slide from Rs 799 crore in the same period last fiscal.

This widened quarterly loss came despite an increase in order volumes and rising revenue, as heavy investments in its quick commerce segment continue to weigh on overall performance.

The company's annual losses also surged, reaching Rs 3,116 crore in FY25, up 35 per cent from Rs 2,350 crore in FY24, according to its latest regulatory filings.

Adjusted EBITDA loss stood at Rs 732 crore for the March quarter, driven by aggressive growth spending in Swiggy's quick commerce business, particularly through Instamart.

While Swiggy's revenue rose to Rs 5,609 crore in the March quarter -- up from Rs 3,668 crore a year ago -- analysts remain concerned about the company's ability to control cash burn and turn a profit.

Competitors like Zomato, through its Blinkit arm, have ramped up their presence in the quick commerce space, putting additional pressure on Swiggy's margins.

Swiggy CEO Sriharsha Majety defended the company's performance, calling FY25 a 'year of many firsts,' highlighting the launch of new apps like Instamart, Snacc, and Pyng.

He noted, 'Our food delivery engine delivered best-ever results across innovation and execution, driving category-leading growth and rising profitability in lockstep.'

He also said the out-of-home consumption business became profitable in Q4.

Despite these positive developments, the market remains sceptical. Swiggy has not regained momentum post-IPO and has spent nearly four months trading below its debut price.

Brokerages note that while the core food delivery segment remains stable, the quick commerce division -- though fast-growing -- continues to be the main drag on profitability.

/IANS