Swiggy's quarterly loss increases to an grand total of 1,197 crores in FY26 Q1; revenue climbs up by 54%
In the first quarter of the fiscal year 2025-26, Swiggy, India's leading food delivery platform, reported a significant increase in its user base and revenue, but also widened losses.
Swiggy's platform's average monthly transacting users (MTUs) in food delivery rose to 16.3 million, marking a substantial growth. The company's revenue from the food delivery segment increased nearly 20% to Rs 1,800 crore.
The growth in users and revenue was also reflected in Swiggy's core food delivery vertical, which reported a gross order value (GOV) of Rs 8,086 crore, an 18.8% rise from the year-ago period.
However, Swiggy's adjusted EBITDA loss widened to Rs 813 crore, and the net loss expanded sequentially, compared to Rs 1,081 crore in the March quarter. The net loss surged 96% year-on-year to Rs 1,197 crore for the first quarter.
Swiggy's total expenses for the quarter climbed nearly 60% to Rs 6,244 crore. The food delivery adjusted EBITDA margin compressed to 2.4% of GOV.
The company's quick commerce arm, Instamart, showed significant growth. Instamart's contribution margin improved to -4.6%, a sequential increase of 97 bps. Instamart's division posted losses of Rs 896 crore for the quarter, but its gross order value (GOV) more than doubled year-on-year to Rs 5,655 crore. Instamart's GOV increased by 21.1% compared to the previous quarter.
Instamart's average order value (AOV) rose 25.6% year-on-year to Rs 612. The adjusted EBITDA margin for Instamart rose to -15.8%, up from -18.0%.
Swiggy added 41 new dark stores, bringing the total to 1,062 across 127 cities. The main competitors of Swiggy in the rapid commerce (quick delivery) market include firms like Zomato and other local food delivery platforms in India.
Swiggy attributed the decline in profitability to seasonal expenses associated with delivery partner availability during monsoon-related migration and its annual employee appraisal cycle. The company's Out-of-Home vertical sustained profitability, posting an adjusted EBITDA margin of 0.5%.
Revenue from operations rose 54% to Rs 4,961 crore for the quarter ended June 30. Swiggy's financial results highlight the company's continued growth in the food delivery and quick commerce markets, despite the challenges of widened losses.
