X account @Swiggy
Swiggy Q1 Loss Nearly Doubles as Revenue Jumps 54%
Swiggy, the Indian food and quick-commerce delivery platform, reported a sharp rise in its net loss for the first quarter of fiscal year 2026. Despite a substantial boost in revenue, mounting expenses tied to its grocery division pushed losses higher.
Revenue Growth Doesn’t Offset High Costs
For the April–June period, Swiggy’s operating revenue climbed 54% year-on-year, reaching ₹4,961 crore. Yet its net loss nearly doubled to ₹1,197 crore compared to ₹611 crore a year ago. Total expenses surged about 60% to ₹6,244 crore, driven by higher advertising, delivery, and logistics costs.
Instamart Bears the Brunt
The company’s Instamart arm, its quick-commerce grocery service, recorded a standalone loss of ₹797 crore with a negative margin of 15.8% even as its gross order value more than doubled. Meanwhile, the food delivery business grew more steadily at 19% YoY, delivering segment EBIT of ₹202 crore.
User Growth and Platform Metrics
Swiggy’s active monthly users rose by over 35% YoY, reaching 21.6 million. Its total gross order value (GOV) across platforms jumped 45% to ₹14,797 crore. Of this, food delivery accounted for ₹8,086 crore, while Instamart contributed ₹5,655 crore.
Stock Reaction and Strategic Moves
Shares of Swiggy fell over 4% after the results were announced, dipping below its IPO listing price. Investors expressed concern over high cash burn despite growth. Swiggy also indicated plans to sell its 12% stake in ride-hailing startup Rapido amid emerging competition, as Rapido enters food delivery itself.
What Lies Ahead
CEO Sriharsha Majety said the company plans to modulate investments and focus on scale-led profitability. With rising competition from rivals like Blinkit, Zepto, and BigBasket, Swiggy must balance growth and cost discipline to satisfy investor expectations.
