Swiggy Ltd reported a consolidated net loss of ₹922 crore for the September quarter, narrowing 15.6% from ₹1,092 crore a year earlier, while revenue from operations rose 36.1% year-on-year to ₹7,571 crore from ₹5,561 crore.
However, losses widened sequentially as expenses rose faster than revenue. Net loss increased 16.6% from ₹791 crore in the June quarter, while revenue from operations grew 11.1% quarter-on-quarter from ₹6,812 crore.
Total expenses rose 29.7% year-on-year to ₹8,703 crore from ₹6,711 crore. Advertising and sales promotion expenses increased 24.9% to ₹1,298 crore from ₹1,039 crore a year ago and were up 11.9% from the preceding quarter.
Consolidated adjusted EBITDA loss widened to ₹760 crore from ₹695 crore a year ago and ₹651 crore in Q1 FY27, according to the company's shareholders' letter.
Food delivery hits record profit
Swiggy's food delivery business continued to improve its profitability. Gross order value grew 17.7% year-on-year to ₹10,054 crore, while adjusted EBITDA increased by ₹101 crore from a year earlier to a record ₹341 crore.
“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,” said Sriharsha Majety, co-founder, managing director and group CEO of Swiggy.
The company said food delivery growth accelerated to more than 20% in September and reiterated its full-year GOV growth guidance of 18-20%, excluding Toing.
Instamart growth comes with higher losses
Quick commerce continued to expand, with Instamart's GOV rising 31.4% year-on-year to ₹9,230 crore. Net order value grew 34.8% to ₹6,594 crore, while orders increased 29.3% year-on-year to 130 million.
Swiggy added 69 dark stores during the quarter, taking its network to 1,240 stores across 133 cities. However, Instamart's Adjusted EBITDA loss widened to ₹895 crore from ₹849 crore a year ago and ₹778 crore in Q1 FY27. Its contribution margin stood at -1% of GOV, improving 157 basis points year-on-year but deteriorating 82 basis points sequentially.
Swiggy said it expects another quarter of double-digit sequential growth in Instamart's net order value in Q3 FY27, with an improvement in Adjusted EBITDA margin.
Management also said it believes in the product differentiation in quick commerce. “We see assortment as a curation game rather than a volume game,” Majety said in the shareholders' letter.
Shares of Swiggy Limited ended 5.48% lower at ₹211.40 apiece on the NSE on Thursday. The stock has fallen over 51% in the past year, substantially underperforming the Nifty Midcap 50, which declined by just over 2% during the same period.