Swiggy’s stock took a hit on Friday, wiping out a chunk of investor enthusiasm. The shares slid as much as 7%, settling around ₹305 on the BSE after the company reported a widening Q3 net loss of ₹1,065 crore, up from ₹799 crore a year ago and slightly narrower than the ₹1,092 crore loss in Q2FY26. Revenue climbed 54% year-on-year to ₹6,148 crore, marking an 11% sequential increase. The mixed signals have sparked fresh debate on whether Swiggy’s shares are worth holding or facing a longer slump.
Let’s unpack what happened in the quarter, why the market reacted as it did, and what investors might consider next without glossing over the details.
Revenue Growth vs Loss Explosion
Swiggy continues to show strong top-line growth despite mounting losses. Revenue from operations jumped 54% YoY to ₹6,148 crore, while sequential growth was 11% from Q2FY26.
The user base is expanding steadily. Average monthly transacting users (MTUs) increased 36.8% YoY to 24.3 million, with food delivery MTUs reaching 18.1 million, up 22% YoY. These numbers highlight the strong engagement and adoption across India, even as profitability remains under pressure.
But the bottom line remains a concern. Net losses widened, and adjusted EBITDA losses persist, showing that operational efficiency is still a challenge for Swiggy’s rapid expansion strategy.
Segment-Wise Performance: Where the Money Is Going
Food Delivery
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Gross order value (GOV): ₹8,959 crore, up 20.5% YoY
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Adjusted EBITDA margin: 3% of GOV
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Food delivery remains the core revenue driver, with higher engagement and faster order frequency supporting revenue growth.
Quick Commerce (Instamart)
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GOV: ₹7,938 crore, 103.2% YoY growth
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Quarterly loss: ₹908 crore, up ₹59 crore QoQ
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Adjusted EBITDA margin: -11.4%
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Rapid expansion adds revenue but continues to burn cash aggressively, keeping margins deeply negative.
Network Expansion
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Added 34 dark stores, taking total to 1,136 across 131 cities
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Active dark store area grew 95.5% YoY to 4.8 million sq ft
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Investment in infrastructure is key to scaling Instamart but comes with high operational costs.
Average Order Value
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Rose 40% YoY to ₹746, reflecting larger baskets and non-grocery offerings, which improves revenue per user but has limited effect on profitability for now.
Investor Reaction
The 7% drop in shares isn’t just about one quarter. Investors are weighing the fast growth against persisting losses:
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Profitability still elusive: Despite revenue growth and higher engagement, losses remain high, keeping adjusted EBITDA negative.
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Quick commerce burn: Instamart continues to be a major cost driver, with losses widening QoQ.
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Rising expenses: Marketing, promotions, and delivery costs increased, putting further pressure on margins.
The result is a cautious market response, reflecting uncertainty about the timing of profitability.
Analyst Commentary
Brokerages are providing measured guidance:
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Motilal Oswal: Maintained Buy rating, revised target to ₹440. Cites food delivery strength and margin improvement potential, though Instamart remains a drag.
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Morgan Stanley: Maintained Equal Weight, lowered target to ₹375. Recognizes steady food delivery performance but sees limited visibility on a re-rating until margins improve.
Analyst views show that while growth is robust, visibility on profit realization remains limited.
What Investors Should Consider
Long-Term Investors
Swiggy dominates India’s food delivery market, and Instamart is gaining traction. Those confident in the business model and market consolidation may hold with measured exposure. Volatility and ongoing losses should be expected.
Short-Term or Risk-Averse Investors
Rising losses, especially from quick commerce, and high operational costs make near-term returns uncertain. Trimming exposure or setting stop losses is a cautious approach.
Key Metrics to Watch
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Quarterly profit trajectory
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Margin improvement across segments
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Cash flow trends and burn rate
Swiggy’s strong cash reserves from recent funding rounds and asset sales give it runway to keep investing, but cash alone does not guarantee profitable growth.
FAQs: Swiggy Q3 Loss and Stock Performance
1. Did Swiggy’s Q3 loss cause the stock to drop?
Yes. The shares fell about 7% after reporting a widened net loss of ₹1,065 crore.
2. Is Swiggy still growing despite the losses?
Yes. Revenue increased 54% YoY, with food delivery and Instamart showing strong demand.
3. Are investors concerned about profitability?
Yes. EBITDA and net losses remain negative, raising concerns about when Swiggy will turn a profit.
4. Should long-term investors sell Swiggy shares now?
No. Those confident in the company’s growth trajectory may hold, but exposure should be measured.
5. Is Instamart causing the widening losses?
Yes. Rapid expansion and operational costs are driving losses in quick commerce.
6. Will Swiggy become profitable soon?
Not guaranteed. Analysts expect gradual improvement, but margins are under pressure and profitability is not assured in the near term.
