Swiggy Ltd posted a net loss of ₹1,197 crore in Q1 FY26, up sharply from ₹611 crore in Q1 FY25. Operational revenue climbed 54% YoY, reaching ₹4,961 crore, fueled by growth across food delivery and Instamart
📌 Key Drivers of Loss
- Expenses surged 60% YoY to ₹6,244 crore, driven by delivery costs, marketing, employee benefits, and supply chain expansion
- Delivery costs alone amounted to ₹1,313 crore, while advertising and promotions tracked at ₹1,036 crore
- Food delivery revenue rose nearly 20% YoY to ₹1,800 crore and remained profitable at a segment result of ₹202 crore
- Revenue from Instamart nearly doubled to ₹806 crore, but incurred a steep segment loss of ₹797 crore
🚧 Strategic Context
Swiggy continues to invest heavily in diversifying its platform—beyond food delivery into quick commerce (Instamart), supply-chain services, dining-out, and experiential offerings. The company’s CEO, Sriharsha Majety, emphasized the long-term focus on building convenience at scale, acknowledging scale‑related losses as expected growth investments
📊 Segment Overview
| Business Segment | Q1 FY26 Revenue | Segment Result |
|---|---|---|
| Food Delivery | ₹1,799 crore | ₹202 crore profit |
| Instamart (Quick‑Commerce) | ₹806 crore | ₹–797 crore loss |
| Supply‑chain & Distribution | ₹2,259 crore | ₹–47 crore loss |
Additionally, Swiggy earned ₹87 crore in other income, with a minor ₹1 crore net loss from its associate, Loyal Hospitality
✅ Why It Matters
Despite strong topline growth, Swiggy remains deeply unprofitable due to aggressive investment in scale-up, especially in Instamart. Analysts still see growth potential:
- Morgan Stanley suggests Swiggy may gradually recapture market share in quick commerce despite losses
- Investor sentiment remains cautiously optimistic following positive momentum in rival Eternal’s performance—despite Swiggy stock being down 41% since IPO, it has rebounded ~21% in the past three months The Economic Times.
🔭 Outlook Ahead
- Watch for Improvements in Instamart unit economics, as Swiggy plans to reduce losses through operational efficiency.
- Future earnings impact will heavily depend on scalability of dark-store expansion, order frequency, and discounting intensity.
- The performance of newer verticals like dining-out, events, and Platform Innovations will also shape overall profitability.
