Swiggy falters under quick commerce strain as losses nearly double in Q1
The Bengaluru-based food delivery platform posted a revenue of ₹ 4,961 crore in April-June, 54% higher from a year ago, driven by a surge in its supply chain and distribution (SCD) business, the company said in an exchange filing on Thursday.
The SCD business, which provides tech services to wholesalers and retailers, rose 56% to ₹ 2,259 crore in the three months through June. It accounts for 45% of Swiggy's total revenue, and grew at more than three times the pace of its mainstay food delivery business, which rose 18.5% during the quarter.
Instamart saw its revenue grow to ₹ 806 crore in the April–June quarter, up from ₹ 374 crore a year ago. But its losses also shot up to ₹ 797 crore, compared to ₹ 280 crore last year. This steep rise in Instamart's losses is the main reason why Swiggy's total loss nearly doubled to ₹ 1,197 crore, from ₹ 611 crore in the same period last year.
The food delivery business accounted for 36% of Swiggy's revenue, while quick commerce brought in 16%.
Swiggy's quarterly revenue of ₹ 4,961 crore was slightly below Elara Capital's estimate of ₹ 5,088 crore.
Meanwhile, Swiggy's larger rival Eternal Ltd, formerly Zomato, maintained its dominance by staying profitable despite similar cost pressures. Eternal posted a ₹ 25 crore net profit for the same period, as its quick commerce unit Blinkit gained significant traction—tightening its grip in a vertical Swiggy once led through Instamart.
Swiggy has not issued a formal guidance for the year ahead, but chief executive officer (CEO) Sriharsha Majety said the company had moved past the peak of quick commerce losses seen in March. 'We will modulate investments to ensure that we drive the business towards scale-led profitability,' he said.
Still, pressure is mounting. 'The real problem is that Swiggy is not the category leader anywhere,' said Satish Meena, founder of Datum Intelligence. 'That makes the capital burn much harder to justify, especially in a post-IPO environment where public market patience is thinning.'
'Losses in Instamart are significantly higher compared to Blinkit, and it is indeed troubling for Swiggy,' Meena said. 'These losses cannot be attributed only to expansion of dark stores—there has been a heavy investment in customer acquisition and discounting.'
Swiggy's adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) loss widened 75% to ₹ 813 crore. Total expenses jumped to ₹ 6,244 crore, with marketing and promotional spend up 114% to ₹ 1,036 crore, and delivery-related costs rising 63% to ₹ 1,313 crore.
Instamart accounted for 38% of Swiggy's total Gross Order Value (GOV) in the quarter. Order volumes more than doubled, and average order value rose 25% to ₹ 612. However, the segment's adjusted Ebitda margin stood at –15.8%, meaning Swiggy lost nearly ₹ 16 for every ₹ 100 worth of goods sold.
Gross order value in e-commerce refers to the value of all orders placed on a platform during a specific period, and includes discounts and refunds etc.
Food delivery remained the most profitable business for Swiggy. It contributed 54.6% of total GOV and posted a segment profit of ₹ 202 crore in Q1FY26. Food delivery GOV rose nearly 19% year-on-year to ₹ 8,086 crore.
Zomato's Blinkit benefited from customer familiarity, having evolved from Grofers. 'Blinkit created buzz and scaled quickly, especially in NCR. Instamart, in contrast, is still building that presence,' said Meena.
Swiggy added 1.2 million monthly transacting users (MTUs) during the June quarter—its highest quarterly addition in two years—taking the total to 16.3 million. Overall platform GOV rose 45% year-on-year to ₹ 14,797 crore.
Beyond food and Instamart, the dining out and events segments— Dineout and SteppinOut—contributed 7.3% to total GOV and turned marginally profitable with an adjusted Ebitda margin of 0.5%.
Swiggy did not disclose performance data for its ultra-fast delivery platform Bolt.
A fresh source of concern also emerged with Rapido, a company in which Swiggy owns a 12% stake. Rapido recently announced its entry into the food delivery space, creating a potential conflict of interest. Swiggy acknowledged this in its earnings release: 'As a shareholder, we are extremely happy with their success and value-creation; but do acknowledge a potential conflict of interest that may arise in the future. We are actively re-evaluating our investment due to the above developments.'
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