Food and grocery delivery platform Swiggy logged a consolidated net loss of Rs 922 crore in the second quarter ended September 2026 (Q2 FY27), down 16% from the Rs 1,092 crore loss it reported a year earlier.
On a quarter-on-quarter basis, losses ballooned 17% from Rs 791 crore, as quick commerce arm Instamart and newer businesses like Toing dragged down the company’s profitability.
Operating revenue came in at Rs 7,571 crore, up 36% from Rs 5,561 crore in the year-ago quarter. Sequentially, it grew 11% from Rs 6,812 crore.
Swiggy’s food delivery business reported revenue of Rs 2,619 crore in Q2 FY27, alongside an adjusted EBITDA profit of Rs 341 crore. Average monthly transacting users rose to 19.8 million, compared with 19.2 million in the preceding quarter.
Food delivery gross order value (GOV) grew 18% YoY and 6% QoQ to Rs 10,054 crore, led by growing demand in the affordable meals segment, where Swiggy serves customers through 99-Store and Toing.
Toing led to self-cannibalisation
In its shareholders’ letter, Swiggy acknowledged that Toing, its standalone app offering dishes priced between Rs 49 and Rs 199, drove some customers away from the core Swiggy app, a demand shift it had not anticipated.
“In the short term, there were some inter-play of demand levers on one platform vs the other which was hard to predict as we built out both the offerings,” the company said.
However, it remains bullish on Toing due to strong user adoption. Swiggy said two out of three users on Toing were either first-time Swiggy users or long-dormant users. This shows that the proposition is adding to the overall category growth.
“Toing’s success can catapult combined Food delivery (Swiggy+Toing) marketplace growth to 25-30% (from the current guided range of 18-20%),” Swiggy said.
Swiggy had launched Toing to compete with Rapido’s Ownly. Since then, IPO-bound Curefoods has also rolled out a budget-food app called MegaBite, according to The Hindu BusinessLine.
On the contrary, Eternal, the parent company of Zomato, is not completely sold on a standalone budget-food offering. Co-founder Deepinder Goyal said Toing and Ownly have not unlocked any new use case. “These platforms are offering the same restaurants, similar or longer delivery times, and lower menu prices funded by lower commissions and delivery fees — making the revenue gap even more unsustainable,” Goyal said in the Q1 FY27 shareholders’ letter.
However, Swiggy believes Toing will drive 30-40% additional category expansion, and its value proposition will unlock more than 150 million users. The company is betting that its food delivery GOV will grow 2.5-3.5x by FY31, driven by Toing and other affordability-led initiatives.
Instamart losses peaked in Q2, says Swiggy
Swiggy’s quick commerce business Instamart racked up Rs 1,307 crore in revenue in Q2 FY27, up 26% from Rs 1,038 crore a year earlier. Sequentially, revenue rose 6% from Rs 1,232 crore.
However, adjusted EBITDA loss widened 5% to Rs 895 crore from Rs 849 crore in Q2 FY26. On a QoQ basis, losses swelled 15% from Rs 778 crore.
“We believe the adjusted EBITDA losses to have peaked out in Q2 FY27,” Swiggy said.
The company said competitive intensity in the sector remains high, and it does not expect it to ease in the near term, with horizontal e-commerce players also participating actively through the festive quarter. The remarks come as Flipkart and Amazon have launched their own quick commerce offerings — Flipkart Minutes and Amazon Now.
Despite high competition, quick commerce GOV increased 31% to Rs 9,230 crore in Q2 FY27 versus Rs 7,022 crore a year earlier. Swiggy attributed this to three factors:
- Larger, higher-quality user base: After culling unprofitable users, Instamart added 1.3 million monthly transacting users in Q2 FY27, the highest addition in five quarters.
- Targeted pricing investments: During the quarter, Swiggy introduced the Rs 9 Store deal, a promotional feature that lets users buy select everyday items – such as fruits, vegetables and eggs – for just Rs 9. The move was aimed at reactivating its dormant user base and driving habit-building behaviours among repeat users.
- Network expansion and differentiated assortment: Swiggy added 69 dark stores during the quarter, taking its total to 1,240. Its differentiated assortment strategy, led by NOICE and the Switch range of products, continued to deepen user engagement.
Instamart to transition to inventory model next quarter
Following its transition into an India-owned and controlled company (IOCC) in August, Swiggy will begin shifting to an inventory-led model in quick commerce from mid-Q3 FY27. The process will take 2-3 quarters to get completed.
Swiggy co-founder and CEO Sriharsha Majety had previously hinted that the company could move to an inventory-led model during the company’s Q2 FY26 earnings call.
According to Swiggy, the shift to inventory ownership will improve Instamart’s contribution margin by roughly 80 basis points and give it greater control over assortment, pricing, availability and day-to-day operations.
Eternal, which runs quick commerce platform Blinkit, became an IOCC last year and already operates on an inventory model.
Key operating metrics (Q2 FY27)
Swiggy Platform
- B2C total orders: 334 million
- Average monthly transacting users: 27.8 million
- Average monthly transacting restaurant partners: 756,000
Food delivery
- Average monthly transacting users: 19.8 million
- Average monthly transacting restaurant partners: 265,900
Quick commerce
- Total orders: 130.3 million
- Average order value: Rs 708
- Average monthly transacting users: 14.8 million
- Active dark stores: 1,240
- Orders per dark store per day: 1,192
Also read:
- Five strategic developments from Eternal’s Q2FY27 earnings call
- Eternal clocks Rs 125 crore profit in Q2FY27, revenue zooms 78% to Rs 24,138 crore
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