Swiggy Q2: Instamart’s Adjusted EBITDA Loss Declines 5.2% QoQ To INR 849 Cr 

Foodtech major Swiggy reported yet another quarter of loss in Q2, with its quick commerce arm Instamart continuing to be the biggest contributor to its burgeoning losses. However, Instamart managed to reduce its adjusted EBITDA loss on a sequential basis.

The quick commerce arm posted an adjusted EBITDA loss of INR 849 Cr in Q2 FY26, down 5.2% from INR 896 Cr EBITDA loss incurred in the previous quarter. However, adjusted EBITDA loss zoomed 136% YoY from INR 359 Cr. 

Adjusted EBITDA margin also improved 375 bps sequentially to -12.1% from -15.8%. The adjusted EBITDA margin was -10.6% in the year ago period. 

Instamart’s operating revenue doubled YoY to INR 980 Cr from INR 490 Cr in the year ago period. Quarterly, this revenue surged 21.6% from INR 806. 

These gains helped Instamart reduce contribution losses by nearly one-third QoQ to INR 181 Cr, with contribution margins improving by around 200 bps to -2.6% from -4.6% of GOV in Q1. 

“… our contribution margin increased by ~200 bps QoQ to -2.6%, led by higher advertising, optimization of customer incentives, increased capacity utilization, and operating leverage,” the company said in its shareholders letter. 

Growth in GOV and AOV

Instamart’s gross order value (GOV) zoomed 108% YoY and 24% QoQ to INR 7,022 Cr during the quarter under review. Average order value also grew 40% YoY and 14% QoQ to INR 697 Cr in the quarter.

Important to highlight that Instamart’s non-grocery share of GOV jumped to 26.2% in the quarter from 8.7% a year ago. As the share of non grocery category and large pack orders increased during the quarter under review, the NOV-to-GOV ratio declined to around 70%. And as the business continued to improve basket sizes, its take rate dipped 40 bps sequentially to 14.8%.

The company expects non-grocery and general merchandise to contribute more meaningfully going forward as it is both wallet-share and bottomline accretive. 

“Grocery continues to remain both the entry point and the flywheel for the category, and our thrust on the same through both selection and value vectors continues in parallel,” it added. 

Store Expansion For Profitability 

Instamart opened 40 new dark stores during the quarter under review, taking its total store count to 1,102 across 128 cities.

The company further informed that around 25% of its stores are now profitable against just 10% two quarters ago. Meanwhile, around 50 stores now operate at above 3% contributing margin, while the top cohort is already operating at above 5% margin.

Swiggy plans to maximise the efficiency and output of its current network of darkstores rather than opening new stores.

“..we will continue to sweat our already-established darkstore footprint (which can support more than 2X the current order-base), while adding stores to debottleneck capacity or selectively add coverage in specific hyperlocal zones; rather than expanding significantly into the long-tail of smaller cities in the near-term,” management said in the shareholders letter.

The company is also looking to meet on November 7 to consider raising up to INR 10,000 Cr via QIP to double down on its quick commerce arm. 

At the broader level, Swiggy’s consolidated net loss for the period zoomed 74.4% YoY and 9% QoQ to INR 1,092 Cr. Despite this, its operating revenue soared 54% YoY and 12% QoQ to INR 5,561 Cr in Q2 FY26.