Swiggy shares dive 7% to hit record low as lock-in period ends; should you add or avoid?

Shares of Swiggy recorded a sharp fall in Tuesday's trade after the six-month lock-in period for non-promoter, pre-initial public offering (IPO) investors ended on May 12, 2025. The stock tumbled 7.33 per cent to hit an all-time low of Rs 297. It was last seen trading 5.16 per cent lower at Rs 303.95. At this price, it has crashed 43.94 per cent on a year-to-date (YTD) basis.

Around 189.75 crore equity shares — accounting for nearly 83 per cent of Swiggy's total shareholding — became eligible for trading today post the lock-in expiry. It is required to be mentioned here that the lock-in expiry doesn't necessarily imply immediate selling by investors. It just underlines that the shares became available for trading in the secondary markets.

Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, said companies have jumped into the quick-commerce space and that is where the cash burn in happening. 

"We've seen the numbers of Swiggy where losses have widened. So, black is what is needed on the profitability side. Unless that happens, I think it would be catching a falling knife. That said, you may turn lucky but if it turns out well," the market expert told Business Today.

On the technical play, support on the counter came at Rs 295. Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be at Rs 295 and resistance at Rs 315. A decisive move above Rs 315  level may trigger a further upside towards Rs 330. The expected trading range will be between Rs 295 and Rs 315 for the short term."

The online food and grocery delivery platform posted a wider consolidated net loss in the fourth quarter ended on March 31, 2025 (Q4 FY25). During the three months under review, net loss widened to Rs 1,081.18 crore from Rs 554.77 crore in the corresponding period last year.

The online food and grocery delivery platform's revenue from operations, however, surged 44.80 per cent to Rs 4,410.02 crore compared to Rs 3,045.55 crore in the year-ago period.

Swiggy's gross order value (GOV) climbed 40 per cent year-on-year (YoY) to Rs 12,888 crore. It mentioned that consolidated adjusted EBITDA loss increased to Rs 732 crore due to significant growth investments in quick-commerce.

It highlighted that its grocery delivery platform's -- Instamart -- GOV growth zoomed by 101 per cent YoY.