By Admin 
Swiggy vs zomato: In the world of online food delivery, two big players are face to face, Swiggy and ZOMATO (now Eternal). The latest quarterly results of both companies (Q4 FY25) have been revealed and it is very important for investors to know which company shares at this time can prove to be a more profitable deal. Let’s understand this match in four important aspects.
Reduce profit, loss more
The Q4 performance of Swiggy was nothing special in terms of profits. The company has recorded a loss of 1,081 crore, which is almost double the loss of 553 crore in the same quarter last year. However, it is a matter of relief that the company’s revenue increased by 45 per cent and the gross order value also saw 17.6 per cent increase.
At the same time, ZOMATO (now Eternal) has also taken a blow on the profit front. The company’s net profit was 39 crores, which is a 78 percent decline on a year-on-year basis. However, in the operational revenue, the company has shown a brilliant 64 percent growth, which has reached 5,833 crores.
Talk of company strategy and top management
Swiggy’s CEO Sriharsha Majeti has said that the deficit in Instamart was at a peak by the end of Q4 and now the deficit will be reduced gradually in the coming time. He says that there will be a focus on increasing order value and managing competition.
Zomato’s CEO Deepinder Goyal also spoke. He said that competition has always been tremendous in food delivery and it is still the same. However, the company’s market share remains stable and they are expecting further increase in it.
Brokerage house view
Brokerage firm JM Financial has shown a positive attitude on Swiggy. According to him, the company has achieved excellent growth and margin in the food delivery segment, but the growth in Instamart was slow and the loss was high. Nevertheless, a target price of Rs 450 has been kept for the company, which shows the current price of about 44 per cent from 313.
On the other hand, NUVAMA Institutional Equites with ZOMATO have reduced their target price from Rs 290 to Rs 280. The reason behind this is the falling profitability in Quick Commerce Business. However, the company has a strong cash position of 18,800 crore, which is protecting it from fund burn.
Display in stock market
Talking about the recent performance, Swiggy’s stock has fallen by 6 percent in the last 5 trading sessions. It has declined by 31 per cent in the last 6 months and since the listing in November 2024, there has been a decline of 26.5 per cent so far.
In comparison, Zomato’s stock has shown some stability. In the last 5 days, it has gone up 2 percent, while in the last 1 month it has gained 6 percent. Although it has fallen 8 per cent in 6 months, but by giving 16 per cent returns in the last one year, investors have also benefited.
What is the right opportunity to invest?
If you are thinking of long -term investment, then ZOMATO’s stable growth, strong cash reserve and better share performance gives it a little lead. At the same time, Swiggy is still struggling with Quick Commerce (Instamart), but his grip in food delivery business seems to be strengthened.
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