Indian foodtech and quick-commerce giant Swiggy reported a consolidated net loss of ₹1,092 crore for Q2 FY26 (quarter ending September 2025), marking a sharp widening from the ₹626 crore loss in the same quarter last year
This comes even as the company’s revenue from operations surged by 54.4 % year-on-year to ₹5,561 crore, driven by growth across its core food delivery and Instamart (quick commerce) segments.
Key Figures & Drivers
- Revenue from operations: ₹5,561 crore (vs ₹3,601 crore in Q2 FY25)
- Total expenses: ₹6,711 crore — up ~55.7 % YoY from ₹4,309 crore
- Advertising & sales promotion: Jumped ~93.5 % YoY to ₹1,039 crore
- Delivery & logistics expenses: Up ~30.2 % YoY to ₹1,426 crore
- Finance costs: More than doubled YoY (108.7 % growth) to ₹48 crore
- GOV (Gross Order Value)
• Food delivery GOV grew ~18.8 % YoY to ₹8,542 crore
• Instamart (quick commerce) GOV jumped ~108 % YoY to ₹7,022 crore - Margins & segment performance
• The Instamart segment reported a loss of ~₹849 crore in Q2 FY26
• Swiggy’s adjusted EBITDA loss stood at ~₹798 crore, up from ~₹553–554 crore YoY
• The food delivery arm showed sequential margin improvement, with adjusted EBITDA margin reaching ~2.8 % of GOV (an improvement in profitability)
What’s Behind the Loss?
- High investment in growth & expansion
Swiggy expanded its Instamart network (dark stores), launched new propositions, and increased ad spend aggressively to capture market share - Rising operating & logistic costs
The surge in expenses—especially in delivery, logistics, and advertising—eroded margins as scale grew. - Quick commerce drag
The Instamart vertical, despite fast growth in order volume/GOV, continued to be a capital-intensive and loss-making operation. - Finance & interest burdens
Rising finance costs contributed to the widening loss.
Market & Strategic Response
- Board to consider ₹10,000 crore raise
To shore up capital, the Swiggy board has scheduled a meeting (Nov 7, 2025) to consider raising up to ₹10,000 crore via QIP or other permitted modes. - Structural reorganization
Swiggy has set up a step-down subsidiary, Swiggy Instamart Private Limited, under Scootsy Logistics Private Limited, to house its quick commerce operations via a slump-sale. - Asset divestment
The company entered into agreements to sell its entire stake in Roppen Transportation Services (Rapido) for ₹2,399 crore, which will help improve its balance sheet. - Investor reaction
Despite the steep loss, Swiggy’s shares rose ~4% intraday after Morgan Stanley reiterated an “Overweight” rating and key target of ₹450, suggesting that some investors remain optimistic about long-term prospects.
What This Means Going Forward
- Profitability path remains long
Swiggy needs to carefully balance expansion with cost discipline. Scaling without burning cash is the central challenge. - Reliance on capital markets
The success of its proposed ₹10,000 crore raise will be critical to sustaining operations and funding growth. - Focus on margin improvements
Further optimization in logistics, better unit economics in Instamart, and efficiency gains across operations will be key. - Competitive pressures
With multiple players in food delivery and quick commerce, Swiggy must continue innovating and retaining user loyalty. - Monitoring for turnaround signals
Investors will watch closely for signs of moderation in losses or even break-even on key verticals.
