StockPro | Through My Lens: Swiggy’s Q2 FY27 Profit Paradox, Studied
Stock Pro • 4 days ago
What This Video Is About
The video discusses Swiggy's stock performance, which dropped 17% in one day despite showing good earnings. The company's working model and reasons behind the stock drop are analyzed.
Major Ideas Discussed
- Swiggy's stock drop is attributed to the market's overall poor performance and high losses in its Instamart business.
- The company made a profit of ₹341 crore in its food delivery business but incurred a loss of ₹895 crore in its Instamart business.
- Key highlights of Swiggy's Q2 earnings include a gross order value of ₹20,793 crore, up 24.6% year-over-year, and a revenue jump of 33.8% to ₹7,999 crore.
- The company faces challenges in its Instamart business, which is causing significant losses, and needs to increase productivity and revenue per order while reducing losses.
- Swiggy targets ₹10,000 crore in sales and adjusted EBITDA by the end of the year, including ₹4,000 crore from quick commerce.
- As of now, there is no opportunity to invest in Swiggy due to its weak fundamentals, negative ROC and ROE, and negative operating profit margins.
What to Watch Next
The company's progress in reducing losses and making its quick commerce business profitable should be monitored, as well as the overall market performance and its impact on Swiggy's stock.