Food and grocery delivery platform Swiggy reported a sharp rise in its losses for the second quarter (Q2) of FY26, even as its revenues soared on the back of rapid growth in its quick commerce vertical, Instamart. The results underline the company’s continued investment in market share expansion ahead of its planned IPO, but also the mounting costs of doing business in a fiercely competitive sector.
Credits: Moneycontrol
Heavy Losses Despite Revenue Boom
Swiggy’s net loss widened by 74.4% year-on-year (YoY) to ₹1,092 crore in Q2 FY26, compared to ₹626 crore a year earlier. The Bengaluru-based firm had reported a loss of ₹1,197 crore in the previous quarter, indicating only a marginal sequential improvement.
However, the top line told a different story. Revenue from operations surged 54.4% YoY to ₹5,561 crore, up from ₹3,601 crore in Q2 FY25. This also marked an increase from ₹4,961 crore in the preceding quarter, showing strong customer traction across both food delivery and quick commerce.
Swiggy’s adjusted EBITDA loss stood at ₹695 crore, a 104% increase from ₹341 crore in the same period last year. Total expenses climbed nearly 56% YoY to ₹6,711 crore, up from ₹4,309 crore a year ago, driven by marketing costs, dark store expansion, and higher rider payouts.
Instamart Powers Growth, But Burns Cash
Swiggy’s quick commerce vertical, Instamart, continued to be its star performer — and its biggest cash guzzler. Instamart’s revenue doubled YoY to ₹1,038 crore, from ₹513 crore in the year-ago quarter. The gross order value (GOV) skyrocketed by nearly 108% YoY to ₹7,022 crore, showing that consumer adoption of ultra-fast grocery delivery remains on a strong upward trajectory.
Yet, this rapid growth came at a cost. Swiggy’s dark store expansion strategy, while more measured than before, still weighed on margins. The company added 40 new dark stores during the quarter, taking its total count to 1,102.
In comparison, its chief rival Zomato’s Blinkit added 271 new stores, expanding to 1,816 locations. Blinkit has recently switched to an inventory ownership model, helping Zomato record a 63% decline in quarterly profit to ₹65 crore — a stark contrast to Swiggy’s deeper losses.
Swiggy’s CEO and MD Sriharsha Majety reaffirmed the company’s strategic focus, stating,
“We will continue to sweat our already-established dark store footprint, which can support more than 2X the current order base, while selectively adding coverage in specific hyperlocal zones.”
This suggests Swiggy plans to prioritize efficiency over aggressive new city expansion in the near term.
Food Delivery Steadies with Double-Digit Growth
While quick commerce stole the spotlight, Swiggy’s core food delivery business also posted steady growth. Revenue rose 22% YoY to ₹2,206 crore, from ₹1,808 crore a year ago, while the GOV increased by 19% YoY to ₹8,542 crore.
Majety noted that Swiggy managed to sustain momentum despite “volatile macro-consumption trends and higher-than-usual rainfall,” attributing the growth to stronger customer retention and subscription-driven engagement.
“Food delivery continued its growth trajectory in line with our guidance. Importantly, MTU growth accelerated to 17.2% YoY, and double-digit order growth was the highest in two years,” Majety said.
Swiggy’s monthly transacting users (MTUs) jumped 34% YoY to 22.9 million, up from 17.1 million in the same quarter last year — a clear indicator of expanding consumer engagement across its app ecosystem.
Credits: Business Today
IPO Watch: Balancing Scale and Profitability
The Q2 numbers show Swiggy’s aggressive push to cement leadership in India’s food and grocery delivery market. However, the widening losses could raise questions ahead of its upcoming IPO, expected in 2025.
With competitors like Zomato scaling up profitably and Blinkit’s rapid growth eating into Instamart’s turf, Swiggy’s challenge now lies in striking the right balance between growth and financial discipline.
Swiggy’s shares closed 0.2% lower at ₹418 apiece on the NSE on October 30, reflecting cautious investor sentiment following the results.
As the battle for quick commerce dominance intensifies, Swiggy appears determined to play the long game, betting that scale, consumer loyalty, and operational leverage will eventually turn the tide in its favor.
