Swiggy Q2 Results: Loss Narrows 16% to ₹922 Crore; Instamart Losses Widen

Swiggy’s consolidated net loss narrowed 15.6% year-on-year to ₹922 crore in the July–September quarter, while revenue from operations rose 36% to ₹7,571 crore, the company reported on October 22.

The Swiggy Q2 results show a company running at two speeds. Food delivery posted its highest-ever profit, while Instamart, the quick commerce arm, lost more money as it kept adding dark stores.

The quarterly loss was also wider than the ₹791 crore reported in the June quarter. Revenue grew about 11% sequentially from ₹6,812 crore, while total expenses rose nearly 30% year-on-year to ₹8,703 crore, according to Business Standard.

Other income climbed to ₹212 crore from ₹59 crore a year earlier. The consolidated adjusted EBITDA loss stood at ₹760 crore, against ₹695 crore a year ago and ₹651 crore in the previous quarter, Indian Startup News reported.

Swiggy closed the quarter with ₹13,662 crore in cash after burning ₹708 crore. For the first half of FY27, its net loss fell about 25% to ₹1,713 crore on revenue of ₹14,383 crore.

Swiggy Q2 results: food delivery EBITDA hits a record

Food delivery gross order value (GOV) rose 17.7% year-on-year to ₹10,054 crore. Monthly transacting users increased 15.2% to 19.8 million.

Adjusted EBITDA for the segment rose to a record ₹341 crore from ₹240 crore a year earlier. That took the margin to 3.4% of GOV, an improvement of 58 basis points, while higher advertising income lifted the take rate to 26.1%.

Sriharsha Majety, Managing Director and Group CEO, said the food delivery business “delivered its highest ever profits and margins.” Swiggy kept its full-year food delivery GOV growth guidance of 18–20%, excluding Toing, its affordable-meals app that now runs in more than 50 cities.

Out-of-home consumption, which covers dining out and events, grew GOV 34.9% to ₹1,508 crore. The segment stayed profitable for a seventh straight quarter.

Instamart losses widen as the dark store network grows

Instamart’s GOV stood at ₹9,230 crore, up 31.4% year-on-year and 16.7% from the previous quarter. Net order value rose to ₹6,594 crore, and orders grew 29.3% to 130 million.

The unit added 69 dark stores during the quarter, taking its network to 1,240 stores across 133 cities. Its adjusted EBITDA loss widened to ₹895 crore from ₹778 crore in the June quarter, though the margin improved slightly to -9.7% of GOV from -9.8%.

Contribution margin slipped to -1% of GOV, 82 basis points weaker than in the June quarter but 157 basis points better than a year ago. In its shareholders’ letter, Swiggy said it believes Instamart’s adjusted EBITDA losses “have peaked out” in Q2.

The gap with rival Eternal remains wide. Eternal reported a Q2 net profit of ₹125 crore on revenue of ₹24,138 crore, and its Blinkit unit posted an adjusted EBITDA profit of ₹184 crore from 2,751 stores, more than twice Instamart’s footprint.

What happens next for Swiggy

For investors, the key question is how long Instamart will take to break even. Swiggy has said the business needs roughly 2.3 times its current scale, or about ₹60,000 crore in annualised net order value, to get there.

In the near term, the company expects Instamart’s adjusted EBITDA margin to improve by about 100 basis points in the December quarter. A shift in its inventory model should add about 80 basis points to contribution margin over two to three quarters, starting in the middle of the December quarter.

Swiggy is also selling its B2B distribution arm, Lynks Logistics, to Trustroot Internet, the parent of Udaan, for about ₹500 crore in preference shares, plus a separate ₹75 crore investment. The deal gives Swiggy a stake of roughly 3.2% in Udaan.

The quick commerce unit has new leadership. Nandita Sinha took over as Instamart CEO on August 3 after Amitesh Kumar Jha stepped down, and the results are among the first under her watch.

Shareholders have approved a 49.5% cap on foreign shareholding so that Swiggy qualifies as an Indian-owned and controlled company. Domestic ownership has since crossed 58%, according to the company.

Over the longer term, Swiggy is targeting adjusted EBITDA of ₹10,000 crore by FY31 on GOV above ₹2.5 lakh crore, a goal set at its Capital Markets Day on August 6. The full results filing is available on the NSE corporate announcements page. For more earnings coverage, see our latest business news.