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Swiggy’s shares will be in focus on Wednesday after the food and grocery delivery company received an assessment order
Swiggy Shares
Swiggy Share Price: Swiggy’s share price opened 1% lower at Rs 328.80 in Wednesday’s trade but soon surged to trade in the green. It was up 1.3% at Rs 336.45. The food and grocery delivery company received an assessment order from the Income Tax Department, demanding unpaid dues of Rs 158.25 crore.
The order was issued by the Deputy Commissioner of Income Tax, Central Circle 1 (1), Bangalore, and pertains to alleged violations, including cancellation charges paid to merchants that were disallowed under Section 37 of the Income Tax Act, 1961, and interest income from income tax refunds that was not declared for taxation.
Swiggy confirmed the development in a regulatory filing, stating, “The Company has received an assessment order for the period April 2021 to March 2022, where an addition of Rs 158,25,80,987 (Rs 158.26 crore) has been made.”
The company maintains that it has strong grounds to challenge the order and is actively taking steps to protect its interests through review and appeal. Swiggy also emphasized that the order is not expected to have any significant adverse impact on its financials or operations.
This follows previous notices from the Income Tax Department related to unpaid dues of Rs 1.1 crore concerning cancellation charges paid to merchants during the 2018-19 financial years. Swiggy has indicated that it will also be appealing those earlier orders.
For the October-December 2024 period, Swiggy reported operating revenue of Rs 3,993 crore, marking a 31% year-on-year (YoY) increase. However, its net loss widened to Rs 799 crore from Rs 574 crore a year earlier, largely due to increased investments in its quick commerce business.
In addition to the tax notices, Swiggy has also been flagged for over Rs 327 crore in unpaid Goods and Services Tax (GST). The GST notices concern unpaid taxes on delivery fees charged to platform users. While the GST department insists that both Swiggy and its rival Zomato are liable to pay tax on these fees, the companies argue that the fees are entirely passed on to the gig workers. In December 2024, the GST department issued a similar demand notice for Rs 803 crore to Zomato.
Swiggy’s Stock Target Price
According to Trendlyne data, the average target price for Swiggy’s stock is Rs 508, which reflects a potential upside of 53% from current market levels. Analysts’ consensus recommendation for the stock is a “Buy,” based on the views of 18 analysts.