Swiggy Q2: Loss Surges 74% YoY To INR 1,092 Cr

Swiggy continued to bleed heavily in the second quarter of FY26. The foodtech major’s net loss for the period zoomed 74.4% to INR 1,092 Cr from INR 626 Cr in Q2 FY25. On a sequential basis, the company managed to trim its loss by 9% from INR 1,197 Cr. 

Meanwhile, its top line continued to see strong growth. Swiggy’s operating revenue soared 54% to INR 5,561 Cr in Q2 FY26 from INR 3,601 Cr in the year-ago quarter. This also marked a 12% uptick from INR 4,961 Cr revenue reported in Q1 FY26. 

Including other income of INR 59 Cr, total income for the quarter under review stood at INR 5,620 Cr. Total expenses zoomed 56% YoY to INR 6,711 Cr. 

The company’s adjusted EBITDA loss zoomed 104% YoY to INR 695 Cr but reduced 15% from INR 813 Cr in the preceding June quarter. 

Now, let’s take a deeper look at the performance of Swiggy’s verticals in Q2. Swiggy divides its business into five segments – food delivery, quick commerce, supply chain and distribution, out of home consumption, and platform innovations. Here’s how the segments performed during the quarter.

Food Delivery: The vertical reported a 22% YoY revenue growth to INR 1,923 Cr. Food delivery continued to be the most profitable segment for Swiggy, bringing in a profit of INR 251 Cr in the quarter. The segment’s profit more than doubled on a YoY basis. 

Quick Commerce: Swiggy Instamart’s loss zoomed 133% YoY to INR 739 Cr. Its revenue grew 2X to INR 980 Cr from INR 490 Cr in Q2 FY25. 

Out Of Home Consumption: The segment, which operates DineOut and SteppinOut offerings, reported a profit of INR 6 Cr in the quarter under review as against a loss of INR 9 Cr in the year-ago quarter. Its operating revenue surged 49% YoY to INR 88 Cr. 

Platform Innovations: The segment, which houses Swiggy’s supplementary businesses like Swiggy Sports, SNACC, among others, saw its revenue plunge 52% YoY to INR 12 Cr. Its loss zoomed 4X YoY to INR 45 Cr.

Supply Chain & Distribution: Under this segment, Swiggy leverages its warehousing capabilities to offer supply chain services to FMCG brands. This vertical continued to be the main driver of Swiggy’s top line, bringing in a revenue of INR 2,560 Cr during the quarter. This marked a 22% YoY uptick. The segment’s loss reduced 71% YoY to INR 18 Cr.

Overall, Swiggy’s B2C business’ gross order value (GOV) zoomed 48% YoY to INR 16,683 Cr in Q2 FY26. Swiggy Platform had 2.3 Cr average monthly transacting users in the quarter, up 34% YoY and 6% QoQ. Platform frequency per user, however, shrunk from 4.53 times a day in the year-ago quarter to 4.10 times. 

Despite the consistent quarterly losses, Swiggy CEO Sriharsha Majety shared his excitement over the company’s “improved execution muscle”.

In the shareholder letter, Majety reflected upon the “unprecedented pace” of growth for Swiggy’s food delivery business and Dineout as well as an “improved customer proposition” in its quick commerce business. 

Now, let’s take a detailed look at the performance of the key food delivery and quick commerce verticals during the quarter.

Higher Competition In Food Delivery

Despite witnessing a general softness in discretionary consumer spending, Swiggy’s food delivery business’ GOV grew 19% YoY to INR 8,542 Cr. To unlock further growth in this business, the company said that affordability would remain a key focus area. 

Important to note that the company launched cheaper food propositions like Toing and 99 Store during the quarter. On its most recent launch, Toing, Swiggy said that the rationale behind a separate app launch was to run a clean experiment on the marketplace model for what is a different business model itself, given that the unit economics for low AOV meals can prove to be challenging for all parties involved.

“With affordability of meals likely to be the single largest unlock for the food delivery category, it is incumbent upon market creators like us to try multiple approaches and see what can succeed; even if it means disrupting the status quo,” it said.

The company noted that it saw heightened competitive action, both in terms of lower subscription fee and reduced minimum order value, in the food delivery segment during the quarter. To combat this, it said that it tweaked its Swiggy One proposition on a target basis to ensure no-short term loss of users or orders. 

Instamart Needs More Funds

While the company said that Instamart has consistently clocked over 100% GOV growth in the previous three quarters, the vertical continued to rake in losses. 

During the quarter, Swiggy added a mere 40 new dark stores, far less than the 272 dark stores set up by its larger competitor Blinkit. With this, the company’s dark store count stood at 1,102 across 128 cities. 

However, Instamart is focussing more on the size of the dark stores it operates.

Of the 40 new additions, about half were megapods, its larger dark stores that can house up to 50,000 stock-keeping units (SKUs).

“We continue to add stores for densification, expansion in zones with fully-utilised capacity, and selection expansion in specific hyperlocal areas. To elaborate, at a network average level our orders/darkstore/day has moved up 4% QoQ to 1,025, whereas darkstores can operate at 2,000+ orders (and megapods at much higher levels),” the company noted. 

While Swiggy believes that quick commerce would continue to grow at a very fast clip, it still faces an extremely competitive environment, necessitating additional investments. As a result, the company would consider a fundraise of up to INR 10,000 Cr via a QIP on November 7.

This comes nearly a year after the company netted INR 4,350 Cr via its IPO in November last year. Besides, Swiggy will also get INR 2,400 Cr through the sale of its stake in Rapido. With the INR 2,400 Cr boost, the company’s cash reserves are expected to touch INR 7,000 Cr. 

It is speculated that the fresh capital would help Swiggy bolster its domestic shareholding, a necessity for it to move to an inventory-led model. 

To note, Eternal is moving its quick commerce vertical Blinkit to an inventory-led model. The move led to a 8.5X YoY surge in its Q2 revenue to INR 9,891 Cr. Meanwhile, its adjusted EBITDA loss declined 4% YoY to INR 156 Cr in the quarter.

Shares of Swiggy ended today’s trading session 0.20% lower at INR 418.10 on the BSE.

(Edited  by: Vinaykumar Rai)