Swiggy Q2: Loss Narrows 16% YoY To ₹922 Cr, Revenue Jumps 36%

Swiggy’s consolidated net loss narrowed 16% YoY to ₹922 Cr in Q2 FY27 but widened 17% from ₹791 Cr in the preceding quarter.

Instamart’s segment loss increased to ₹764 Cr from ₹651 Cr in Q1 FY27, offsetting an improvement in food delivery profitability.

Operating revenue grew 36% YoY and 11% QoQ to ₹7,571 Cr, while total expenses rose 30% YoY to ₹8,703 Cr.

Foodtech major Swiggy reported a consolidated net loss of ₹922 Cr in the September quarter of FY27, narrowing 16% from ₹1,092 Cr in the year-ago quarter. However, its loss widened 17% from ₹791 Cr in the preceding quarter.

Operating revenue increased 36% YoY and 11% QoQ to ₹7,571 Cr, according to its stock exchange filings. Including other income of ₹212 Cr, total income stood at ₹7,783 Cr.

Swiggy’s consolidated adjusted EBITDA loss widened to ₹760 Cr from ₹695 Cr a year earlier and ₹651 Cr in Q1 FY27, with higher losses at Instamart and its newer businesses weighing on profitability.

Across its consumer-facing businesses, gross order value (GOV) increased 25% YoY to ₹20,793 Cr. Average monthly transacting users rose 21% to 27.8 Mn.

Total expenses increased 30% YoY to ₹8,703 Cr. The purchase of stock-in trade rose about 55% YoY to ₹3,607 Cr, while employee expenses lowered by about 2% to ₹676 Cr. 

Food delivery continued to be the bread winner for Swiggy, with operating revenue increasing by 22% YoY to ₹2,338 Cr along with a 39% jump in operating profit to ₹349 Cr.

“Our food delivery business delivered its highest ever profits and margins while we continue to unlock new category growth through Toing, our standalone offering for affordable meals,” Swiggy cofounder, MD, and group CEO Sriharsha Majety said.

Instamart EBITDA Loss Peaks Ahead Of Inventory Model Pivot

Meanwhile, Instamart’s revenue contribution continued to pick pace during the quarter. The quick commerce arm’s revenue grew by 33% YoY to ₹1,306 Cr while operating loss increased by 3% to ₹749 Cr.

Its adjusted EBITDA loss widened to ₹895 Cr from ₹849 Cr a year earlier and ₹778 Cr in Q1 FY27. Adjusted EBITDA margin improved marginally to -9.7% of GOV from -9.8% in the preceding quarter.

Swiggy said it believes Instamart’s adjusted EBITDA losses peaked in Q2 FY27.

Amid mounting losses, the company announced today that it would begin pivoting Instamart to an inventory-led model by the middle of the ongoing December quarter (Q3 FY27). The company completed its pivot to an Indian-Owned and Controlled Company (IOCC) within the previous quarter, enabling it to move Instamart to this model. 

The company is eyeing shifting Instamart to the inventory model within the upcoming three quarters. 

“This has the potential to add 80 bps to Instamart’s contribution margin when fully rolled-out while giving us greater flexibility and control over assortment, pricing, availability and day-to-day operations. As we transition to the inventory model, we expect to improve our overall working capital cycle by 8-10 days which should offset the additional investment in holding of the inventory on our balance sheet,” the company said.

During the quarter under review, Instamart’s contribution margin stood at -1% of GOV, deteriorating 82 basis points sequentially while GOV increased 31% YoY and 17% QoQ to ₹9,230 Cr in Q2 FY27. 

Swiggy attributed the sequential decline in margins to targeted pricing investments to reactivate dormant users and encourage repeat purchases, changes in customer and category mix, and the initial costs of new dark stores.

The renewed spending follows Instamart’s achievement of contribution breakeven in Q1 FY27, after which Swiggy stepped up investments to accelerate growth. 

Instamart added 1.3 Mn average monthly transacting users sequentially, taking the total to 14.8 Mn. Orders increased 29% YoY to 130.3 Mn, while net average order value rose 4% to ₹506.

It also added 69 dark stores during the quarter, taking its network to 1,240 stores across 133 cities. 

(The story will be updated soon)

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