Swiggy shares in focus after Rs 158 crore tax demand, firm plans to appeal

Swiggy shares will be in focus on Wednesday after the food and grocery delivery firm received an assessment order from the Income Tax Department for unpaid dues of Rs 158.25 crore.The tax demand pertains to the fiscal year 2022, during which Swiggy did not pay tax on cancellation charges paid to merchants and interest income from an income tax refund, the company said.

“The company believes it has strong arguments against the order and is taking necessary steps to protect its interests through review/appeal. The company believes the order has no major adverse impact on its financials and operations,” Swiggy stated.Also Read: Stocks in news: Tata Consumer, Swiggy, Godavari Power, Tata Motors, Indian BankEarlier, the Bengaluru-based company received notices from the Income Tax Department for unpaid dues related to cancellation charges paid to merchants in financial years 2018 and 2019, totaling Rs 1.



1 crore. Swiggy had said last month that it would be appealing those assessment orders as well.For the October-December 2024 period, Swiggy posted an operating revenue of Rs 3,993 crore, up 31% year-on-year (YoY).

Its net loss, however, widened during the three months to Rs 799 crore from Rs 574 crore a year earlier, largely due to investments in its quick commerce business.In addition to the income tax notices, authorities have also flagged unpaid Goods and Services Tax (GST) amounting to over Rs 327 crore by the company, which went public in November 2024.The GST notices issued to Swiggy pertained to tax not paid on delivery fees charged by the platform to its users.

While the GST department believes Swiggy, as well as its rival Zomato, are liable to pay tax on the delivery fees, the companies say that these fees are passed on entirely to the gig workers. In December 2024, the GST department issued a demand notice amounting to Rs 803 crore to Zomato.Also Read: Senco Gold to Rajesh Exports: 9 stocks that could skyrocket over 100%Swiggy shares target priceAs per Trendlyne data, the average target price of the stock is Rs 508, which shows an upside of 53% from the current market prices.

The consensus recommendation from 18 analysts for the stock is a 'Buy'.Also Read: 10 BSE 500 stocks that can rally 70-210% in the next 12 monthsSwiggy shares performanceOn Tuesday, Swiggy shares closed at Rs 331.5 on the BSE, up 0.

5%, while the benchmark Sensex declined 1.8%. The stock has dropped 39% year-to-date.

The company’s market capitalization stands at Rs 75,808 crore.Also Read: Bitcoin and the psychology of wealth: Robert Kiyosaki on why most people stay poor(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times).