Swiggy Q2 Revenue Jumps 54% Even as Net Loss Widens to Rs.1,092 Crore
Swiggy Q2 Results: Net Loss Widens to ₹1,092 Crore Despite 54% Revenue Surge, Driven by Instamart Expansion
Bengaluru, October 30, 2025:
Food and grocery delivery platform Swiggy reported a widened net loss of ₹1,092 crore for the second quarter of FY26, marking a 74.4% year-on-year (YoY) increase from ₹626 crore a year earlier. The company’s financial performance reflects the cost pressures of scaling up its quick commerce vertical, Instamart, even as operational revenues saw robust growth.
Swiggy’s revenue from operations rose 54.4% YoY to ₹5,561 crore, compared to ₹3,601 crore in the same period last year and ₹4,961 crore in the previous quarter. Despite this sharp increase in revenue, the Bengaluru-based firm continues to operate at a loss as it prioritizes growth, infrastructure expansion, and market share gains in India’s competitive food delivery and quick commerce sectors.
Swiggy’s total expenses jumped nearly 56% YoY to ₹6,711 crore, up from ₹4,309 crore in Q2 FY25 and ₹6,244 crore in the previous quarter. The company’s adjusted EBITDA loss widened to ₹695 crore, more than doubling from ₹341 crore a year ago, though marginally improving from ₹813 crore in Q1 FY26.
The widening losses underline Swiggy’s continued investments in logistics, marketing, and dark store expansion — particularly under its Instamart segment — as it looks to capture a larger slice of India’s rapidly growing online grocery delivery market.
In comparison, rival Zomato reported a modest profit of ₹65 crore in Q2 FY26, down 63% YoY, on the back of strong performance from its quick commerce arm Blinkit, which adopted an inventory ownership model that boosted revenue by 183% to ₹13,590 crore.
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Swiggy’s operational performance remained strong during the September quarter. The company’s average monthly transacting users (MTUs) grew 34% YoY to 22.9 million, up from 17.1 million a year earlier — a reflection of the brand’s expanding user reach and engagement across urban and semi-urban markets.
Group CEO and Managing Director Sriharsha Majety highlighted that despite macroeconomic volatility and heavy rainfall across parts of India, the company’s food delivery and Instamart businesses maintained a steady growth trajectory.
“Food delivery continued to grow in line with our expectations, with 18.8% YoY growth in Gross Order Value (GOV), even amid volatile consumption trends,” Majety said.
“We also saw accelerated MTU growth and the highest double-digit YoY order growth in the past two years.”
Swiggy’s core food delivery segment reported a 22% YoY rise in revenue to ₹2,206 crore in Q2 FY26, compared to ₹1,808 crore a year ago. The GOV for the vertical increased nearly 19% YoY to ₹8,542 crore, indicating steady demand and higher average ticket sizes.
The company said that its subscription programmes, such as Swiggy One, continue to see strong traction as more users opt for membership-based discounts and delivery benefits. Despite the competition from Zomato’s premium offering, Swiggy’s customer retention rates have remained healthy, driven by promotional campaigns and localized offers.
Swiggy’s Instamart, the company’s quick commerce arm, remained the key growth driver during the quarter. The segment’s revenue jumped 102% YoY to ₹1,038 crore, from ₹513 crore in Q2 FY25. Correspondingly, GOV surged 108% YoY to ₹7,022 crore, compared to ₹3,382 crore a year ago and ₹5,655 crore in the previous quarter.
However, the company slowed down the pace of dark store expansion, adding just 40 new stores during the quarter and bringing the total to 1,102. This cautious approach contrasts with Zomato’s Blinkit, which added 271 new stores in the same period, taking its total footprint to 1,816.
Majety explained the rationale behind Swiggy’s strategy:
“We plan to optimize our existing dark store footprint — which can already support over twice our current order volume — while selectively adding new locations to debottleneck capacity in high-demand areas.”
He emphasized that the company’s focus remains on enhancing efficiency, improving order fulfillment speed, and strengthening unit economics rather than aggressively expanding into smaller cities in the short term.
On October 30, Swiggy’s shares closed marginally lower by 0.2% at ₹418 apiece on the NSE, as investors digested the mixed Q2 performance — strong revenue growth offset by continued losses.
Analysts said the company’s long-term prospects remain solid, given the rapid adoption of online food and grocery delivery in India, but cautioned that profitability will depend on how quickly Swiggy can control expenses and improve margins in its quick commerce business.
Industry watchers also noted that Swiggy’s focus on sustainability, logistics innovation, and user experience could provide a competitive edge in the coming quarters. “The next two quarters will be crucial for Swiggy to prove that its growth strategy can translate into sustainable profitability,” said a Mumbai-based market analyst.
Despite widening losses, Swiggy’s strong top-line performance and rapid growth in user base underscore its dominant position in India’s online delivery ecosystem. The company’s strategic restraint in expansion, combined with operational optimization, could help narrow losses in upcoming quarters.
As India’s consumption patterns evolve and quick commerce gains further traction, Swiggy’s ability to balance growth with profitability will define its success story in FY26. With continued focus on expanding high-margin segments, improving logistics efficiency, and leveraging data-driven insights, Swiggy remains poised for long-term growth in the competitive digital economy.
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