Swiggy's Financial Performance Improves in Q2
Bengaluru-based food and grocery delivery platform Swiggy announced its consolidated financial results for the September quarter of fiscal year 2027, revealing a narrowed net loss of Rs 922 crore. This marks an improvement from the Rs 1,092 crore loss reported in the same period last year. The company's revenue from operations saw a substantial 36.1% year-on-year increase, reaching Rs 7,571 crore, up from Rs 5,561 crore.
Despite the positive trend in revenue and reduced net loss, Swiggy's total expenses continued to climb, reaching Rs 8,703 crore compared to Rs 6,711 crore a year prior. This increase in operational costs outpaced revenue growth, keeping the company in the red for the quarter.
Strong Showing in Food Delivery and Out-of-Home Consumption
Swiggy's core food delivery business demonstrated robust growth, with Gross Order Value (GOV) increasing by 17.7% year-on-year to Rs 10,054 crore. The adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for this segment improved by Rs 101 crore, reaching Rs 341 crore. This translated to an adjusted EBITDA margin of 3.4% of GOV, indicating enhanced profitability.
The out-of-home consumption business also performed strongly, recording a 34.9% year-on-year growth in GOV to Rs 1,508 crore. This segment achieved its seventh consecutive quarter of profitability, posting an adjusted EBITDA margin of 0.5% of GOV.
Instamart's Continued Expansion and Losses
Swiggy's quick-commerce arm, Instamart, continued its expansion efforts during the quarter, adding 69 new dark stores to its network, bringing the total to 1,240 stores. Instamart's net order value grew 31.4% year-on-year and 13.4% sequentially, reaching Rs 6,954 crore.
However, Instamart continued to weigh on the company's overall profitability, reporting a quarterly loss of Rs 895 crore. While its contribution margin improved by 157 basis points year-on-year to minus 1% of GOV, it declined by 82 basis points sequentially. The adjusted EBITDA margin for Instamart improved only marginally to minus 9.7% from minus 9.8% in the preceding quarter.
Broader Financial Context
Overall, Swiggy's consolidated performance reflects a strategic balance, where strengthening profitability in its food delivery and out-of-home businesses helped mitigate the impact of rising expenses and the continued losses from Instamart. On Thursday, shares of Swiggy settled at Rs 211.30, experiencing a more than 5% fall for the day, with the company's total market capitalization standing at Rs 58,325 crore.