Zomato rival Swiggy reports Rs 1,092 crore loss in Q2 FY26; revenue jumps 54% to Rs 5,561 crore

Swiggy, a Bengaluru-based food delivery giant that competes with Zomato, reported strong top-line growth in the September quarter, even as losses deepened amid heavier advertising outlays.

The company's consolidated revenue from operations rose 54.4% year-on-year to Rs 5,561 crore, driven by expansion in its food-delivery and Instamart quick-commerce verticals.

Total expenses grew 55.7% YoY to Rs 6,711 crore, with advertising and sales-promotion costs surging 93.5% to Rs 1,039 crore and delivery-related expenses up 30% to Rs 1,426 crore. Employee benefits increased to Rs 690 crore, while finance costs more than doubled to Rs 48 crore.

The company posted a consolidated and pre-tax loss of Rs 1,092 crore for the quarter, compared with Rs 626 crore a year earlier.

The food-delivery business continued its profitable trajectory at the adjusted EBITDA level, with gross order value (GOV) rising 18.8% YoY to Rs 8,542 crore. Monthly transacting users climbed 34% YoY to 22.9 million, with over a third using multiple services on the platform.

Adjusted EBITDA margin for food delivery improved to 2.8% of GOV, up 125 basis points YoY, indicating better user engagement through newer propositions such as Bolt, 99 Store, Deskeats and health-focused offerings.

Instamart, Swiggy’s quick-commerce arm, saw GOV growth accelerate 108% YoY (24% QoQ) to Rs 7,022 crore, supported by a 40% jump in average order value to Rs 697. The network expanded to 1,102 dark stores across 128 cities, covering 4.6 million sq ft. Contribution margin improved 200 basis points QoQ to -2.6 per cent, and the adjusted EBITDA loss narrowed to Rs 849 crore, reflecting progress toward operational efficiency and larger basket sizes.

Swiggy’s out-of-home consumption segment also remained profitable, with 52% YoY GOV growth and an adjusted EBITDA margin of 0.5% of GOV.

Managing Director and Group CEO Sriharsha Majety said the company achieved its strongest order-growth momentum in two years, aided by user-centric innovations. 

"This was led by acceleration in user-growth on the back of new propositions like Bolt, 99-Store, Deskeats and Health-focused curations; all aimed at covering the entire breadth of user expectations. Instamart made giant strides in catering to all purchase-missions through Maxxsaver (grocery) and Quick India movement (non-grocery), driving up AOV 40% YoY. A ~200 bps QoQ Contribution margin improvement showcases our commitment to drive scale-led, sustainable and profitable growth in Quick-commerce, led by best-in-class speed and selection," Majety added.

The board of directors is scheduled to meet on November 7 to consider a fund-raise of up to Rs 10,000 crore through public or private offerings, including qualified institutional placements (QIPs) in one or more tranches, subject to shareholder and regulatory approval.