Swiggy Q1 Results: Loss nearly doubles YoY to ₹1,197 crore even as revenue surges 54%
The sharp spike in losses came despite a 54% year-on-year surge in revenue. The company's consolidated revenue during the quarter under review came in at ₹ 4,961 crore versus ₹ 3,222 crore in the same period a year ago.
On a sequential basis, the loss remained higher than ₹ 1,081 crore posted during the quarter ended March 2025. Meanwhile, revenue improved 12.5% quarter-on-quarter (QoQ).
The consolidated adjusted EBITDA loss jumped to ₹ 813 crore from ₹ 465 crore a year ago, and ₹ 732 crore in the preceding March quarter.
The company added that its platform Gross Order Value (B2C GOV) rose ~45% YoY to ₹ 14,797 crore, even as its B2C adjusted EBITDA margin saw a 204 bps decline YoY to -4.7%. The figure improved 12 bps QoQ. Overall, average monthly transacting users (MTU) on the Swiggy platform grew 35.2% YoY and 9% QoQ to 21.6 million.
The food delivery business saw an 18.8% YoY growth in GOV to ₹ 8,086 crore. The company added 1.2 million MTU to reach 16.3 million. Swiggy said this was the maximum number of MTUs added in a single quarter in two years.
The adjusted EBITDA margin contracted to 2.4% of GOV, led by seasonal investments into delivery partner availability and the impact of annual appraisals.
Instamart GOV growth rose to 108% YoY and 21% QoQ, led by a jump in AOV. Its average order value (AOV) grew 25.6% YoY to ₹ 612 ahead of its guidance, led by continued
expansion of non-grocery selection and larger-basket buying behaviour across user cohorts.
The contribution margins improved by ~100 bps QoQ to -4.6%, while the adjusted EBITDA margin improved to -15.8%. During the June quarter, Swiggy added 41 dark stores, driving up active dark store area to 4.3 million sq ft, up 158.7% YoY, 8.2% QoQ.
The Out-of-Home consumption segment's GOV grew 61% YoY and 21% QoQ, led by the continued success of GIRF and a thrust on making festive event days big.
The segment had turned profitable last quarter and continued to expand its operating margins, with an adjusted EBITDA margin of 0.5% (+20bps QoQ).
'Swiggy's Food delivery business continues to deliver robust growth, while innovating to create new customer propositions which can open up the market further. Bolt and 99-store are efforts to ensure that we keep challenging the status quo, and help our restaurant partners garner new users and incremental consumption. Instamart witnessed a massive leap in AOV led by assortment expansion and Maxxsaver adoption. Focus has been on agile and calibrated network expansion, and improving wallet-share by increasing basket size, which is one of the prime determinants of long-term profitability," said Sriharsha Majety, MD & Group CEO, Swiggy.
We have moved past the Mar-25 peak of losses in Quick-commerce, but amidst significant competition, we will modulate investments to ensure that we drive the business towards scale-led profitability, Majety added.
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Time of India
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- Time of India
ETtech Explainer: Swiggy's losses balloon despite moving towards improving economics
The company reiterated that it is past the expansionary phase in quick commerce. 'With nearly half our dark stores less than a year old, we're now shifting gears—from rapid expansion to consolidation and leverage,' it had said in its FY25 annual report, published earlier this week. It even slowed down dark store additions in the April-June period, with only 41 stores being added to its network, compared to 316 in the January-March quarter. In an interaction with ET, Swiggy CFO Rahul Bothra said that any expansion from hereon will be a 'derivative of growth and not necessarily flag planting.' During the company's earnings call, Instamart CEO Amitesh Jha said that the company can find near-term growth from the top 10-20 cities and will focus on that. On the unit economics front, Swiggy said it was pushing higher average order values (AOVs) on Instamart. For the June quarter, AOVs increased 16% quarter-on-quarter (QoQ) to Rs 612. To achieve higher AOVs, the company said it was focusing on Maxxsaver—its bulk order offering that lets users order a larger number of items with higher discounts. This helps the company save on last-mile logistics costs. It also increased the minimum basket size on Instamart for free deliveries, resulting in the filtering out of low AOV orders. In Q1, besides the heavy losses, Swiggy also burnt through more than Rs 1,000 crore in cash—the second consecutive quarter of it doing so. For quick commerce, the company saw orders per dark store per day declining on a sequential basis to 985 from 1,190. On a YoY basis, Instamart's gross order value (GOV) per square foot fell about 20% to Rs 13,163. Swiggy also said that its operating losses for Instamart peaked in March. However, adjusted Ebitda loss for the June quarter came in at Rs 896 crore, up from Rs 840 crore in Q4FY25 and Rs 318 crore in Q1FY25. Academy Empower your mind, elevate your skills Swiggy added a significant number of dark stores in the March quarter, and the full cost of operating those new stores hit in Q1, before they had time to mature and become efficient. Just like it did in its food delivery business, the company spent more on getting delivery partners on board during Q1 on account of seasonal challenges like monsoon and reverse migration. Maxxsaver was fully rolled out in Q1, and Swiggy said that while it helped increase AOVs, it didn't boost contribution margins immediately. Swiggy's fixed expenses jumped by Rs 56 crore compared to the previous quarter, mainly due to employee appraisals and hiring of senior executives. Even though store expansion has slowed, the company continues to spend heavily on brand and performance marketing to compete with rivals, keeping overall costs high. When Swiggy reported its losses for the April-June quarter, doubling to Rs 1,197 crore , it laid out a series of steps it had taken to improve profitability. But the high cash burn that the company is fraught with indicates that these measures may take some time to show their impact. For its quick commerce business , Instamart, Swiggy continued to guide for a contribution margin break-even between Q3FY26 and Q1FY27. Contribution refers to revenue minus the direct order fulfilment said that while Instamart's contribution margin is likely to improve going forward, Swiggy's falling cash balance remained a of June 30, Swiggy had a consolidated cash balance of Rs 5,354 crore, down from Rs 6,695 crore as of March 31 and Rs 8,183 crore as of December 31.'In our view, (Swiggy's) quick commerce contribution margins should improve sharply in the coming quarters with improvement in average throughput per store…cash balance is already down from around $1 billion in Q3FY25 to $620 million after Q1FY26. If capital expenditure and working capital investments do not fall sharply in the coming quarters, we worry cash exhaustion could continue to be significant,' HSBC Global Research said in a note on stock ended 2.85% down at Rs 392.3 on the BSE on Friday.
Time of India
15 hours ago
- Time of India
Swiggy's Q1 losses double to ₹1,197cr, revenue rises 54%
Food and grocery delivery company Swiggy on Thursday reported another quarter of steep net loss and the second consecutive three-month period of cash burn over Rs 1,000 crore amid heightened quick commerce competition even as the company itself slowed down on dark store expansion. For the April-June period, Swiggy's net loss doubled year-on-year to Rs 1,197 crore, while it spent Rs 1,053 crore of cash on a net basis, after accounting for operating, investing, and financing activities. The Bengaluru-based company's operating revenue for the quarter increased 54% to Rs 4,961 crore. The Bengaluru-based company also said that it is looking to offload its 12% stake in urban mobility startup Rapido, which has announced plans to enter the food delivery segment. Swiggy had invested around Rs 1,050 crore in the bike-taxi platform in 2022, and its stake is currently worth Rs 1,400-1,500 crore as per Rapido's last round valuation. 'When we got into Rapido, it was a mobility player doing really well and we wanted to partner with them on that journey. We've even had conversations with them on a partnership in food delivery but unfortunately that didn't materialise and they've decided to get into the business themselves. That's just a wedge…and we're planning to go separate ways on this,' said Sriharsha Majety, Swiggy's group CEO. In a conversation with ET, the company's CFO Rahul Bothra said that while Swiggy hasn't finalised a timeline to sell its stake in Rapido, it has received inbound interest from multiple buyers. During the three-month period ending June 30, Instamart, Swiggy's quick commerce business, added only 42 dark stores, compared to the 316 such micro-warehouses it had added in the January-March quarter. However, the number of orders Instamart clocked per dark store per day during the quarter fell to 985 from 1,190 in the March quarter. As of June 30, the company had a consolidated cash balance of Rs 5,354 crore. This compares to Rs 6,695 crore three months earlier and Rs 8,183 crore following its initial public offering in November 2024. So far, the company has burnt through nearly half of its nearly ₹4,500 crore in capital raised from the IPO. By comparison, Swiggy's key rival Eternal had ₹18,557 crore in closing cash balance as of June 30. Bothra said in a post-earnings conference call that the company had a strong balance sheet. 'We have sufficient cash balance to make investments,' he said, when asked if the company was planning to raise additional capital. Instamart logged a ₹896-crore loss — with a negative 15.8% margin — even as gross order value (GOV) more than doubled year-on-year to ₹5,655 crore. Analysts said the decline may indicate that Swiggy expanded more quickly than it was able bring in demand but the company said it has taken steps to raise its average order value (AOV) by pushing its bulk order feature, Maxxsaver, and cutting down on low-value orders by increasing the minimum order size required for free delivery.
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No structural negative in Indian pharma seen, FMCG companies chasing margin: Pankaj Pandey
Pankaj Pandey shares insights on various sectors. Pharma companies are focusing on specialty products. Generic drug pricing pressure is expected to continue. FMCG companies are shifting strategies to chase margins. Cement sector is showing better numbers. Hotel sector is also performing well. Auto sector is selectively positive. Food segment is expected to show double digit growth. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , Head Research,, says Indian pharma companies are focusing on specialty products for growth. Generic drug pricing pressure is expected to continue. FMCG companies are shifting strategies to chase margins. Global sectors may face pressure, making FMCG a better trading option. The food segment is expected to show double digit growth. Indian pharma faces US exposure, but structural negatives are not expected.I do not have coverage on Swiggy or even Eternal and so would not be able to comment. But some of the numbers which I have liked like Ambuja are again talking of Rs 350 per tonne of improvement and the volume growth is higher than the industry. So, cement as a pack has been coming out with a better set of numbers. We have been liking most of them and then Chalet again came up with a very good set of numbers. So, it is not really comparable from a YoY basis, but if you look at the hotel piece specifically, we have seen a high teen kind of a growth in the revenues for hotel business, margins have improved, so that is fact, we like hotels as a pack and overall most of the numbers have come out on expected auto, we are selectively positive. In Maruti, again a muted set of numbers. The only reason we are positive on Maruti is because we are hopeful of the fact that probably in the festive season, even Maruti might be able to deliver better growth than the industry. That is the only Eicher Motors came out with a decent set of numbers and they are also looking quite constructively, especially in the festive season and TVS also came out with a good set of numbers. From that perspective, one needs to be very selective in the overall results. But the result in general is lacking the spark to lift the market higher and which is why we are continuing to see consolidation in the market because of tariff-related the pharma side, all global majors will have a lot more challenges given the fact that some of them are housed in Ireland which again is a tax haven and obviously there are some challenges with respect to pricing which is what Trump is domestic manufacturers or even for exporters, largely the template seems cut out. For example, most of the companies have started to focus on the speciality side, like we have seen in the case of Sun Pharma and their global specialty sales have grown at about 17 odd percent. Domestic growth was 14 odd percent. From that perspective, overall, our sense is that companies have started to become selective in terms of growth and generic is where we do not expect much of a pricing leeway that India can is why we are not too worried from that perspective because all these tariff related noises are going to continue for a good period of time even for countries which have done the trade deal. A lot of details are still not available. You cannot pencil down your numbers on this basis and mark down the the sense is that though Indian pharma is exposed to the US and a sizable chunk too, there are no major alternatives for generic medicines like what US might be expecting. So, from that perspective, a knee-jerk or sentimental reaction can happen. But we do not see a structural negative that is going to pan out in pharma the FMCG front, they have changed the template. Earlier the growth was driven by premiumisation which is where we have seen volume growth tapering off for even a big player like HUL and as a result, the margins were on an elevated they are looking to chase margins and which is why we have seen for a company like HUL, quarter-on-quarter volume incremental improvement of about a percent. So, my sense is again given the fact that some of the global oriented sectors are expected to witness some kind of a pressure, so your FMCG becomes a better trading I am still not very convinced in terms of a very high growth rate for this sector, and so a sum total both pricing and volume growth is still going to be low single digits or probably mid-single or slightly higher depending on the case but in general this sector is not expected to outperform. Selectively, we are positive on a company like say Tata Consumer or Marico . The food segment is again expected to deliver double digit kind of growth and that looks sustainable, otherwise one needs to be very selective in FMCG as overall space.
