Margin recovery crucial for Swiggy re-rating despite strong Q1 growth

Swiggy posted 54% Y-o-Y revenue growth in Q1 FY26 but losses widened; analysts say margin recovery will be key for further stock re-rating despite strong GOV momentum

Swiggy reported a revenue of ₹4,961 crore in the first quarter of the financial year 2026 (Q1FY26), a growth of 12.5 per cent quarter-on-quarter (Q-o-Q) and 54 per cent year-on-year (Y-o-Y).

 

The food delivery business’ gross order value (GOV) grew 18.7 per cent Y-o-Y to ₹8,090 crore, whereas the contribution margin (CM) contracted 50 basis point (bp) Q-o-Q to 7.3 per cent. The adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) of the food delivery segment as a per cent of GOV margin dipped 50bp Q-o-Q to 2.4 per cent.

 

The monthly transacting users (MTU) count grew by 16