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Business Standard
6 hours ago
- Business
- Business Standard
Quick commerce burns weigh on Swiggy in Q1; Instamart AOV jumps 25%
Swiggy posted a consolidated net loss of ₹1,197 crore in Q1 FY26, nearly doubling from ₹611 crore in the same period last year. Losses also rose sequentially from ₹1,081 crore in Q4 FY25. The widening loss was attributed to a sharp 60 per cent increase in total expenses, which climbed to ₹6,244 crore during the quarter. This came despite a significant 52 per cent year-on-year rise in revenue from operations, which reached ₹5,048 crore, up from ₹3,310 crore a year earlier. Sequentially, revenue rose 11.4 per cent from ₹4,531 crore. Swiggy's quick commerce arm Instamart recorded a Gross Order Value (GOV) of ₹5,655 crore in Q1, a YoY growth of 108 per cent and 21.1 per cent sequentially. The platform added 41 darkstores during the quarter, taking its total network to 1,062 darkstores across 127 cities, covering 4.3 million sq ft. Average Order Value (AOV) rose by 25.6 per cent YoY to ₹612, led by assortment expansion and Maxxsaver adoption. Despite these gains, Quick Commerce posted a loss of ₹896 crore in the quarter. Adjusted EBITDA margin improved marginally to -15.8 per cent from -18.0 per cent in Q4. Food Delivery Holds Steady with Double-Digit Growth Swiggy's core food delivery segment delivered GOV of ₹8,086 crore, up 18.8 per cent YoY. Monthly Transacting Users (MTUs) grew by 1.2 million quarter-on-quarter, driving 16 per cent YoY growth. Seasonal factors such as the monsoon and Q1's annual delivery partner appraisals impacted profitability, resulting in an adjusted EBITDA margin of 2.4 per cent, down from 2.9 per cent in the previous quarter. Leadership Outlook and Strategic Focus Sriharsha Majety, Swiggy's MD and Group CEO, noted that the company has surpassed its March 2025 peak loss in quick commerce. He reaffirmed the focus on 'agile and calibrated network expansion' and increasing basket sizes to drive profitability. Majety emphasised the role of initiatives like Bolt and 99-store in broadening Swiggy's food delivery appeal, enabling restaurant partners to access new customers and increase order volumes. Swiggy reported a consolidated adjusted EBITDA loss of ₹813 crore for the quarter. The company remains focused on achieving scale-led profitability while navigating competitive pressures, particularly in the quick commerce space. As the festive season approaches, Swiggy expects a normalisation in operating margins, while continuing to balance investment in new formats with disciplined financial planning.
Time of India
6 hours ago
- Business
- Time of India
Swiggy weighs Rapido exit amid conflict, loss widens to Rs 1,197 crore in Q1
BENGALURU: Swiggy is re-evaluating its 12% stake in bike-taxi startup Rapido after the latter announced plans to enter food delivery, a potential conflict with Swiggy's core business. 'When we got in two and a half years back, it was a mobility player doing really well. Unfortunately, it has decided to get into food delivery themselves. That has made us take notice of the conflict and therefore we're planning to go separate ways on this,' CEO Harsha Majety told analysts. The development comes as Swiggy's loss for the June quarter widened to Rs 1,197 crore from Rs 611 crore a year ago, even as revenue from operations surged 54% to Rs 4,961 crore. Quick commerce remained the company's biggest growth driver. Instamart's gross order value doubled year-on-year to Rs 5,655 crore, aided by a 26% jump in average order value to Rs 612 from its basket-building feature Maxxsaver. Contribution margins improved by 97 basis points sequentially to -4.6%, though the segment posted a loss of Rs 896 crore. Amitesh Jha, CEO of Instamart, said the focus would remain on deepening penetration in existing markets rather than adding new cities. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Jolie-Pitt Family Shows Support For Shiloh's Change Drivepedia Undo 'Market penetration is so low in the cities out of the top 10 or 20 that we believe the right opportunity is to be focused and not necessarily measured,' he said, adding that there is 'enough headroom for growth in the 127 cities we are already in.' Swiggy added 41 darkstores in the quarter, taking its network to 1,062. Food delivery continued to grow steadily, with gross order value rising 18.8% to Rs 8,086 crore. Adjusted Ebitda margin in the segment slipped to 2.4% from 2.9% sequentially, which Swiggy attributed to seasonal delivery-partner incentives and annual wage hikes. The company is also experimenting with new consumer offerings. Bolt, its 10-minute food delivery service, now contributes over 10% of orders, while the 99-Store targets price-sensitive Gen-Z users. Average monthly transacting users on the platform rose 35% year-on-year to 21.6 million, with more than a third using multiple services. Swiggy ended the quarter with Rs 5,354 crore in cash and reiterated its guidance to break even on quick commerce contribution margins between Q3 FY26 and Q1 FY27. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
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Business Standard
10 hours ago
- Business
- Business Standard
Swiggy Q1 FY26 result: Loss widens to ₹1,197 crore as expenses jump 60%
Food delivery platform Swiggy on Thursday reported a consolidated net loss of ₹1,197 crore for the first quarter of the financial year 2025-26 (Q1 FY26), widening from a loss of ₹611 crore in the same period last year. On a sequential basis, the company's losses also deepened from ₹1,081 crore in Q4 FY25. The company's revenue from operations, however, jumped 52 per cent year-on-year (Y-o-Y) to ₹5,048 crore in Q1 FY26 from ₹3,310 crore in Q1 FY25. Sequentially, revenue increased 11.4 per cent from ₹4,531 crore in the previous quarter. The loss widened due to a 60 per cent surge in total expenses, which rose to ₹6,244 crore in the April–June quarter from ₹3,908 crore in Q1 FY25. On a sequential basis, expenses increased 11 per cent from ₹5,610 crore in Q4 FY25. The company also stated that its consolidated adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) loss increased to ₹813 crore during the quarter. Swiggy: Segment-wise performance Food delivery gross order value (GOV) registered an 18.8 per cent Y-o-Y growth Swiggy's quick-commerce arm, Instamart, posted a total loss of ₹896 crore for the quarter. The segment reported 108 per cent Y-o-Y GOV growth and 21 per cent sequential growth, driven by a 16 per cent rise in average order value (AOV). The company also added 41 new dark stores during the quarter, taking the total count to 1,062. The 'Out-of-Home Consumption' segment maintained profitability, with 61 per cent Y-o-Y GOV growth and adjusted Ebitda margin improving to 0.5 per cent of GOV. The company also stated that its platform's average monthly transacting users (MTUs) grew 35 per cent Y-o-Y to 21.6 million. "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, managing director and group chief executive officer of Swiggy. Shares of Swiggy closed at ₹403.8 apiece on the BSE on Thursday. Swiggy Q1 FY26 result highlights
Mint
11 hours ago
- Business
- Mint
Swiggy Q1 Results: Loss nearly doubles YoY to ₹1,197 crore even as revenue surges 54%
Swiggy Q1 Results: Quick commerce and food delivery giant Swiggy on Thursday posted a wider net loss for the first quarter of the financial year 2025-26 (Q1 FY26). Swiggy's consolidated net loss for the quarter ended June 2025 stood at ₹ 1,197 crore, significantly higher than ₹ 611 crore posted in the corresponding period last year. 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.
Time of India
07-07-2025
- Business
- Time of India
Blink and you pay: The 10-minute tomato and cola might cost more than you think
A few months ago, buying a bunch of bananas or a packet of sugar at 10pm with just a few taps on your phone felt like magic. For many in India's big cities, 10-minute grocery delivery became a habit — a small luxury that promised speed and ease. But now, that convenience is coming at a cost, ToI reported. More and more users of Swiggy Instamart , Blinkit , and Zepto are noticing that their bills have started to creep up — not because of the items themselves, but because of the quiet add-ons. From handling fees to rain surcharges, small cart penalties to surge pricing, consumers say they are now paying up to ₹50 extra on every small order. The growing list of charges includes a fixed handling fee of ₹10 to ₹21, along with GST, delivery charges, small cart fees, rain fees, and surge pricing when applicable. While people still enjoy the convenience, many shoppers are going back to comparing prices — both offline and across different online platforms — before opening their quick commerce apps. What once gave these platforms an edge over neighbourhood kiranas — better prices and delivery speed — is now being undone by their rising fee structures. Delhi-based consumer Urvashi Sharma said, "I buy fruits and vegetables from local vendors now. Fruits, for example, tend to be cheaper by ₹30-40. Tomatoes and peas usually are cheaper online, but if you add handling and delivery fees, it comes to the same amount." Market researcher Satish Meena, adviser at Datum Intelligence, said that earlier, customers didn't think twice before placing frequent, small orders. But now they're more cautious — often delaying purchases or clubbing them together to avoid paying extra fees again and again. This shift in behaviour could hurt the gross order value (GOV) of these platforms and slow the movement of goods, which in turn increases the cost of running their dark stores. Live Events You Might Also Like: Quick commerce apps stack up extra fees to curb losses "Consumers are finding quick commerce a bit expensive, but convenience is still the winner. The platforms are trying to move consumers to planned purchases through plans like Super Saver and Maxxsaver, but there's a long way to go," Meena said. Fee structures are not just increasing — they are also becoming harder to track. Swiggy and Zepto typically waive delivery fees if the order is worth around ₹200 or more. But Blinkit requires customers to spend at least ₹500 for free delivery. The platforms did not comment on their pricing policies. Even the fixed fees aren't all that fixed. Swiggy's Instamart can charge anywhere between ₹10 and ₹15 depending on the order value. Zepto usually charges ₹21 for larger orders and ₹13 for smaller ones. Blinkit's handling fee is typically ₹11. Rain fees and surge fees are generally ₹15 and ₹30, respectively, and can be added when demand spikes or weather worsens. For companies still running at a loss, these added charges help improve their financials. But for customers placing last-minute or small-sized orders — the kind that built the quick commerce habit in the first place — the rising costs are hard to justify. Mumbai-based professional Nandini Paul said that even though she pays for premium services like Swiggy One and Zepto Daily to get discounts and benefits, she often ends up paying more than she would on Blinkit for the same basket. "Despite paying for Swiggy One membership and Zepto Daily to avail discounts and other benefits, I often end up paying higher prices on the platforms for the same cart compared to Blinkit," she said. Another customer pointed out the illusion of discounts and free delivery. "There are hidden charges on quick commerce platforms and an illusion of discounts. These days, I think, if I had more time, I would directly shop from the market. But the fact that I can shop anytime of the day is a plus," the consumer said. A recent JM Financial research note said most quick commerce platforms have increased the minimum order value needed to get free delivery. In a comparison of 11-item orders across Instamart , Zepto, Blinkit, and DMart Ready, Blinkit turned out to be the most expensive, while DMart Ready was the cheapest. According to a report by Bain, quick commerce companies have improved their financials by increasing the value of each order, cutting supply chain costs, and boosting profit margins. They have done this by sourcing goods directly from farmers and producers, and by earning more through ads and platform fees. But to keep growing in a profitable way, these firms will have to change their business strategies for smaller towns and cities, deal with more competition, and make supply chains more efficient. The market is also shifting to a two-speed model, where a few products will be delivered in under 15 minutes, while a wider range will arrive within an hour. As quick commerce expands into more cities and begins selling larger items like consumer electronics, the logistics will become more complicated. How well these platforms manage those challenges will decide how much of the overall e-commerce market they can capture. The sector remains crowded, and while there is space for both kiranas and online platforms, one question continues to trouble consumers — how much is too much to pay for convenience? (with ToI inputs) Economic Times WhatsApp channel )
