Swiggy’s advertising and promotion expenses for the quarter ended June 30, 2025, reached ₹1,036 crore, a compelling 132–133% increase year-on-year, up from ₹445 crore in Q1 FY25.
This surge in ad spending exceeded a sequential rise of roughly 5.9%, up from ₹978 crore in the previous quarter.
🚀 Why the Big Marketing Push?
Swiggy intensified its marketing to support rapid expansion across verticals:
- Maintaining competitive edge in wake of rising pressures from Zomato, Eternal (Blinkit), and other quick-commerce players.
- Scaling instamart operations with more dark stores, stronger logistics, and deeper customer engagement.
- Driving loyalty programs, app engagement, and brand visibility to increase order frequency and expand wallet share.
💰 Financial Trade-Off: Rising Revenue vs. Widening Loss
Despite robust revenue growth, soaring costs led to a significant uptick in losses:
- Revenue from operations climbed 54% YoY to ₹4,961 crore (or ₹5,048 crore including other income).
- Total expenses rose nearly 60% YoY to ₹6,244 crore, fueled by elevated delivery, marketing, and logistics costs.
- As a result, net loss widened to ₹1,197 crore, nearly double the previous year’s ₹611 crore figure.
📋 Q1 FY26 Financial Snapshot
| Metric | Amount (₹ crore) |
|---|---|
| Advertising & Promotion Spend | ₹1,036 (↑133% YoY) |
| Total Revenue from Operations | ₹4,961 |
| Total Expenses | ₹6,244 (↑60% YoY) |
| Net Loss | ₹1,197 |
🧠 Analyst Commentary and Outlook
Analysts attribute Swiggy’s judgment to strategic long-term positioning:
- The aggressive ad spend reflects intent to gain market share in fiercely competitive segments.
- Motilal Oswal raised its Swiggy target price, citing improving average order values and customer traction, even while calling for cautious efficiency gains.
- Swiggy’s CEO emphasizes that continued investment aligns with its long-term goal of “creating convenience at scale” by balancing growth and profitability.
🔍 Why This Matters
- The ₹1,036 crore ad spend highlights how central marketing is to retention and expansion in India’s fragmented on-demand economy.
- At double-digit ad-spend growth, Swiggy underscores the shift from discount-driven volume to marketing-driven engagement.
- But the wide losses raise questions about sustainability, especially as costs balloon faster than soon-to-be improved margins.
🔚 Final Thoughts
Swiggy’s massive ₹1,036 crore ad spend in Q1 FY26 underscores its aggressive strategy to scale quickly across food, quick commerce, and supply chain segments. While the move helped drive 54% revenue growth, it also fueled a steep spike in net loss.
As Swiggy pushes forward, investor focus will likely shift to how effectively it transitions from growth-first to margin-first, especially as competition intensifies.
