Swiggy, one of India’s largest food delivery and quick commerce platforms, released its financial results for the first quarter of FY26, and the figures paint a picture of aggressive growth met with equally sharp financial challenges. The company recorded a robust 54% year-on-year jump in operating revenue, rising to ₹4,961 crore in Q1 FY26 from ₹3,222 crore in the same quarter last year. However, this growth came at a high cost, as Swiggy’s net loss nearly doubled to ₹1,197 crore from ₹611 crore year-on-year—driven primarily by sustained losses in its quick commerce vertical, Instamart.
Despite operational strength in its core food delivery segment, the mounting losses underscore the strain quick commerce continues to place on Swiggy’s profitability.
Strong revenue performance masks mounting losses
Swiggy’s top-line performance was among its strongest in recent quarters, attributed to improved order volumes across its service verticals including food delivery, Instamart, and third-party logistics. However, the growth came with a spike in total expenses, which ballooned by 60% year-on-year to ₹6,244 crore. The widening gap between revenue and expenditure has caused a sharp increase in losses, signaling that Swiggy’s investment-heavy strategy in quick commerce may be reaching a critical juncture.
Financial Snapshot: Q1 FY26 vs Q1 FY25
| Particulars | Q1 FY26 | Q1 FY25 | YoY Growth (%) |
|---|---|---|---|
| Revenue from Operations | ₹4,961 crore | ₹3,222 crore | 54% |
| Total Income | ₹5,048 crore | ₹3,294 crore | 53.3% |
| Total Expenses | ₹6,244 crore | ₹3,906 crore | 59.8% |
| Net Loss | ₹1,197 crore | ₹611 crore | 96% |
Core Food Delivery Business Turns Profitable
One of the few bright spots in Swiggy’s Q1 earnings was its core food delivery vertical, which showed sustainable profitability.
- Food delivery revenue stood at ₹1,799 crore, a growth of 19% YoY.
- The segment posted a profit of ₹202 crore, up from ₹67 crore in Q1 FY25.
- Improved delivery efficiencies, loyalty programs, and scale helped boost margins in this segment.
Swiggy’s focus on unit economics, improved Average Order Value (AOV), and strong demand in metro and Tier 1 cities contributed to this operational turnaround.
Instamart: The Quick Commerce Black Hole
Instamart, Swiggy’s ambitious foray into quick commerce, has emerged as the main contributor to its spiraling losses.
- Instamart revenue increased to ₹806 crore, over 2X from the year-ago period.
- However, segment losses rose sharply to ₹797 crore compared to ₹280 crore in Q1 FY25.
- The adjusted EBITDA margin for the vertical stood at –15.8%, indicating significant cash burn per order.
Swiggy added 41 dark stores during the quarter, bringing the total to 1,062 across 127 cities. While this expansion supports long-term reach and convenience, it also raises questions about the timing and return on investment in a price-sensitive and highly competitive market.
Supply Chain Distribution (SCD) Operations
Swiggy’s in-house supply chain and logistics arm contributed ₹2,259 crore in revenue, up 56% YoY. However, it posted a segment loss of ₹47 crore. Although essential for facilitating grocery and food deliveries, the segment continues to be margin negative.
This area remains critical for Swiggy’s operational flexibility and delivery efficiency, particularly for Instamart. Management expects this division to turn EBITDA-positive in the coming fiscal quarters as volume grows and logistics routes are optimized.
Other Business Verticals
Swiggy has also made significant efforts to diversify its platform through offerings like:
- Out-of-Home Consumption (OOH): Revenue of ₹77 crore, up 67% YoY. This segment reported a minor profit of ₹5 crore.
- Platform Innovations (Snacc, Minis, Genie): Generated ₹20 crore in revenue but posted a loss of ₹52 crore, primarily due to product development and marketing expenses.
These innovations are designed to retain users and expand the company’s ecosystem but will need to scale significantly to become financially meaningful contributors.
Strategic Review and Future Focus
Swiggy’s CEO Harsha Majety acknowledged the widening losses but reaffirmed the company’s long-term strategy centered around building category leadership and profitability across all business lines.
Key strategic actions include:
- Review of non-core investments, including its 12% stake in bike taxi platform Rapido, especially after Rapido began its own food delivery expansion.
- Continued optimization of Average Order Value via features like MaxxSaver and minimum cart thresholds.
- Rationalizing Instamart’s store footprint by focusing on high-performing locations and improving operational efficiency.
- Strengthening loyalty and subscription programs to enhance customer lifetime value.
Swiggy is also working toward improving its EBITDA margin across verticals, and management projects a significant reduction in losses by the end of FY26.
Investor Sentiment and Market Impact
Following the earnings release, Swiggy’s stock faced downward pressure, dropping over 4% in early trade. This fall brought the share price below its IPO listing level, reflecting concerns around its persistent losses despite strong revenue growth.
Investor concerns remain high around:
- Swiggy’s ability to bring Instamart losses under control.
- The sustainability of growth in a competitive quick commerce market.
- Cash burn rate, with over ₹1,000 crore spent in two consecutive quarters.
- Timeline to reach company-wide profitability.
Q1 FY26 Segment Contribution Overview
| Business Vertical | Revenue (₹ Cr) | YoY Growth (%) | Segment Profit/Loss (₹ Cr) |
|---|---|---|---|
| Food Delivery | 1,799 | 19% | +202 |
| Instamart | 806 | 108% | –797 |
| Supply Chain Distribution | 2,259 | 56% | –47 |
| Out-of-Home (OOH) | 77 | 67% | +5 |
| Platform Innovations | 20 | 30% (est.) | –52 |
Final Outlook
Swiggy’s Q1 FY26 performance represents a classic high-growth, high-burn scenario. While it has demonstrated solid traction in food delivery and a promising trajectory in revenue across verticals, the continued loss acceleration—especially from Instamart—poses serious challenges.
The company is at a critical juncture where investors and stakeholders will demand sharper cost controls and a clear roadmap toward profitability. Swiggy’s ability to execute its optimization strategies while maintaining growth momentum will be key to its long-term success in a hyper-competitive and rapidly evolving digital commerce space in India.
Disclaimer: This article is intended for informational purposes only. The financial data is based on company disclosures and publicly available information as of July 2025. Readers should seek professional advice before making any investment or business decisions.
