Swiggy's loss widens to ₹1,092 crore, Instamart drags despite GOV growth

Swiggy reported a deeper loss for the quarter ended September 30, 2025, even as its revenue climbed sharply. The food delivery and quick-commerce company posted a consolidated net loss of Rs 1,092 crore in the second quarter of the financial year 2025–26 (FY26), compared with a loss of Rs 626 crore a year earlier.

 

Despite the loss, the company recorded strong top-line growth, with revenue from operations rising 54.42 per cent year-on-year (Y-o-Y) to Rs 5,561 crore during the quarter under review, reflecting continued expansion in both its core food delivery and instant grocery businesses.

 

Total expenses climbed 55.74 per cent Y-o-Y to Rs 6,711 crore, compared with Rs 4,309 crore in Q2FY25. Advertising and sales promotion expenses surged 93.48 per cent Y-o-Y to Rs 1,039 crore, while delivery and related charges increased 30.22 per cent Y-o-Y to Rs 1,426 crore. Employee benefit expenses stood at Rs 690 crore (up 13.67 per cent Y-o-Y), and finance costs climbed 108.69 per cent Y-o-Y to Rs 48 crore during the quarter.

 

The company’s pre-tax loss also stood at Rs 1,092 crore in Q2FY26, against a pre-tax loss of Rs 626 crore in Q2FY25.

 

Swiggy’s food delivery business continued to perform well, with gross order value (GOV) growing 18.8 per cent Y-o-Y to Rs 8,542 crore. Monthly transacting users (MTUs) in food delivery rose by over 0.9 million quarter-on-quarter (Q-o-Q), delivering a 17 per cent Y-o-Y growth. The adjusted Ebitda margin improved to 2.8 per cent of GOV (up 125 basis points Y-o-Y and 44 basis points Q-o-Q), demonstrating that efforts to increase users’ interactions with the platform through new use cases and optimal affordability are gaining traction — without sacrificing growth or profitability.

 

Instamart, the company’s quick-commerce platform, reported GOV growth of 108 per cent Y-o-Y (and 24.2 per cent Q-o-Q) to Rs 7,022 crore. Swiggy added 40 new dark stores, taking its total network to 1,102 dark stores across 128 cities, covering 4.6 million sq ft of space. The average order value (AOV) increased 39.7 per cent Y-o-Y to Rs 697, driven by continued traction from Maxxsaver, its basket-building proposition, and expansion into non-grocery categories.

 

The company said that, in an industry first, Instamart successfully completed the inaugural Quick Commerce sale called the “Quick India Movement”, showcasing over 30,000 stock-keeping units (SKUs) to the majority of consumers. The contribution margin improved to -2.6 per cent (+202 basis points Q-o-Q) on the back of expanded basket sizes, optimisation of customer incentives, and operating leverage. Overall, the quick-commerce segment posted a loss of Rs 849 crore for the quarter, while the adjusted Ebitda margin improved to -12.1 per cent from -15.8 per cent in Q1.

 

Sriharsha Majety, managing director and group chief executive officer, Swiggy, said the company’s food delivery business delivered another quarter of robust growth and improved profitability, with double-digit Y-o-Y order growth at the highest level in two years. This was led by acceleration in user growth on the back of new propositions such as Bolt, 99 Store, Deskeats, and health-focused curations — all aimed at covering the entire breadth of user expectations.

 

“Instamart made giant strides in catering to all purchase missions through Maxxsaver (grocery) and Quick India Movement (non-grocery), driving up AOV 40 per cent Y-o-Y,” said Majety. “A 200-basis-point Q-o-Q contribution margin improvement showcases our commitment to driving scale-led, sustainable, and profitable growth in quick commerce, led by best-in-class speed and selection.”

 

Meanwhile, the company’s board of directors is scheduled to meet on November 7, 2025, to consider and approve the raising of funds up to Rs 10,000 crore through public or private offerings. This includes one or more qualified institutional placements (QIPs) or other permitted modes under applicable laws, in one or more tranches, subject to requisite shareholder and regulatory approvals.

 

Blinkit extends quick-commerce lead

 

The net order value (NOV) share between Blinkit and Swiggy Instamart reveals a steady divergence in India’s quick-commerce market, according to a report by research firm Datum Intelligence.

 

It said Blinkit’s NOV share has climbed from 54 per cent in Q1FY24 to 70 per cent in Q2FY26, while Instamart’s share has contracted from 46 per cent to under 30 per cent over the same period.

 

This shift coincides with Blinkit’s deeper integration into Zomato’s ecosystem, faster dark store expansion, and stronger execution in high-frequency categories. Meanwhile, Instamart’s focus has tilted towards margin improvement and operational efficiency, slowing its volume-led growth, according to Datum.

 

“Blinkit is extending its lead, becoming the primary volume driver in India’s Rs 25,000-crore-plus quick-commerce sector,” said Datum.

 

It said Blinkit is pursuing scale and category breadth, while Instamart is recalibrating towards profitability and utilisation.

 

There is also competitive pressure. Datum said Instamart’s deceleration opens white space for players like Zepto, which continue to gain urban market share.