Swiggy shares drop 10% to hover near listing price after rival Zomato's Q3 profit plunges 57%

Shares of Swiggy dropped 10 percent to trade at Rs 431, as seen at 11.05 am on January 21. This comes after its rival Zomato posted lower-than-expected Q3 results, dampening spirits for the food-delivery sector where the two firms mostly hold a duopoly in terms of market share.

As markets began to see a downturn, so did the shares of Swiggy. The shares are currently around 30 percent lower than its all-time high record of Rs 617 per share.

Zomato had reported its Q3 results on January 20. The company announced that its net profit has crashed 57 percent from the year-ago period to Rs 59 crore in the October-December quarter. Its revenue from operations rose 64 percent YoY to Rs 5,404 crore in Q3, up from Rs 3,288 crore a year ago. Its quick commerce arm Blinkit saw a sharp rise in quarterly losses, which stood at Rs 95 crore in Q3.

Swiggy shares are now nearing their listing price. The stock had listed with a 7.69 percent premium at Rs 420 per share on the National Stock Exchange (NSE) on November 13. On BSE, the shares were listed at Rs 412 per share, marking a premium of 5.6 percent over the IPO price of Rs 390. The stock saw a significant surge after that, rising as much as 32 percent to Rs 617 per share.