BENGALURU, Oct 22: Food and grocery delivery company Swiggy Ltd reported a 15.6 per cent year-on-year reduction in its consolidated net loss for the September quarter, even as its revenue from operations rose 36.1 per cent, highlighting continued business expansion alongside the challenge of achieving sustainable profitability in quick commerce.
The company posted a consolidated net loss of Rs 922 crore for the second quarter of the 2026-27 financial year, compared with Rs 1,092 crore in the corresponding period a year earlier. Revenue from operations increased to Rs 7,571 crore from Rs 5,561 crore in the year-ago quarter.
However, the loss widened from Rs 791 crore in the June quarter, indicating that the improvement on an annual basis had not translated into a sequential reduction in losses.
The results underline the contrasting performance of Swiggy’s two principal businesses. Its food-delivery operations continued to improve profitability, while its quick-commerce arm, Instamart, remained under pressure from spending on customer acquisition, competitive pricing and fulfilment infrastructure.
Total expenses increased nearly 30 per cent year-on-year to Rs 8,703 crore during the quarter, compared with Rs 6,711 crore in the same period last year. The increase reflects the cost of operating and expanding a platform that competes across food delivery, grocery orders and other convenience services.
Food delivery provides stronger earnings support
Swiggy’s food-delivery business remained an important source of operating improvement during the quarter.
Adjusted core profit, measured through adjusted EBITDA, rose by Rs 101 crore year-on-year to Rs 341 crore. The improvement reflected better advertising revenue and greater delivery efficiency, helping the company generate stronger operating returns from its established food-delivery network.
Food delivery benefits from an existing customer base, restaurant partnerships and a relatively mature delivery infrastructure. Higher order volumes, improved rider utilisation and additional advertising income can help increase profitability without requiring the same level of investment needed to build a new distribution network.
The company reported growth in gross order value, a measure of the total value of orders placed through its platform. Food-delivery gross order value increased 17.7 per cent year-on-year to Rs 10,054 crore, while monthly transacting users rose 15.2 per cent to 19.8 million.
These indicators suggest that the platform continued to attract customers and generate additional business despite intense competition in the online food market.
Swiggy maintained its annual food-delivery gross order value growth projection of 18–20 per cent, excluding its budget-meal service, Toing.
The company’s ability to sustain this growth while improving margins will remain important for its overall financial performance. Greater advertising income, stronger order frequency and more efficient delivery operations could support earnings, provided the company avoids excessive discounting and controls operating expenses.
Instamart expansion increases financial pressure
Instamart remained the more challenging part of Swiggy’s business during the September quarter.
Quick-commerce companies typically compete by promising rapid delivery of groceries, household essentials, personal-care products and other frequently purchased items. Their operations depend on strategically located dark stores, inventory management, delivery personnel and technology systems capable of processing orders quickly.
Building this infrastructure requires substantial spending before individual markets reach sufficient order density and operational efficiency.
Swiggy added 69 dark stores during the September quarter, taking its total network to 1,240. The expansion was considerably slower than that of rival Blinkit, which added 308 stores during the same period and had a network of 2,751 outlets, according to Reuters.
The difference in network size illustrates the competitive pressure facing Swiggy as it attempts to strengthen its position in a rapidly developing market.
Instamart’s net order value increased 34.8 per cent year-on-year to Rs 6,594 crore, while its core adjusted loss widened to Rs 895 crore from Rs 849 crore a year earlier.
The rise in order value indicates continued customer demand, but the increase in losses highlights the difficulty of converting rapid growth into financial returns.
The company’s strategy is increasingly focused on strengthening operations in existing markets rather than expanding indiscriminately into new locations. Better warehouse utilisation, improved product availability and higher order volumes per store can help distribute fixed costs across a larger business base.
Swiggy has also indicated that it expects Instamart’s margin to improve sequentially by approximately 100 basis points in the December quarter. The extent of that improvement will depend on customer demand, promotional spending, delivery costs and the efficiency of its fulfilment network.
Competition reshapes the quick-commerce market
India’s quick-commerce industry has attracted substantial investment as consumers increasingly use mobile applications for immediate purchases rather than relying exclusively on traditional retail outlets or scheduled grocery deliveries.
Companies are competing on delivery times, product selection, pricing, discounts and service reliability. They are also expanding beyond basic groceries into personal care, household products, electronics accessories and other categories.
However, the economics of rapid delivery remain demanding. Operators must maintain sufficient inventory close to customers, manage wastage and fulfil orders quickly while keeping delivery and warehouse expenses under control.
Aggressive discounts may help attract new users but can weaken margins if customers do not return frequently or increase their spending over time. Similarly, adding dark stores can improve geographic coverage but also raises fixed costs until the new facilities achieve adequate utilisation.
For Swiggy, the central challenge is to balance customer growth with disciplined investment. A larger store network may improve convenience and reach, but the company needs each location to generate enough orders to cover its operating expenses.
The performance of Instamart over the next several quarters will therefore be important in assessing whether the business can move towards more sustainable unit economics.
Market response and outlook
Swiggy’s results came amid heightened investor attention to the profitability of technology-enabled consumer businesses. Investors are increasingly examining not only revenue growth but also the cost of acquiring customers, the sustainability of promotional expenditure and the time required for newer business segments to become profitable.
Swiggy shares closed 5.01 per cent lower at Rs 211.30 on October 22, ahead of the detailed assessment of its quarterly results by investors.
The company’s annual revenue growth and improved food-delivery earnings demonstrate the scale of demand for digital ordering services. However, the higher quarterly loss compared with the preceding three months underscores the financial demands of competing in quick commerce.
Future performance will depend on whether Swiggy can improve store-level economics, strengthen customer retention and increase order volumes without proportionately increasing expenses.
Its food-delivery operations provide a source of operating earnings, while Instamart offers opportunities to expand into a broader range of everyday purchases. Turning those opportunities into sustained profitability remains the key financial test for the company.