Zomato rival Swiggy’s loss jumps to Rs 1,197 crore in Q1 FY26; revenue rises 54%

Bengaluru-based food delivery major Swiggy has reported a sharp widening of its net loss for the first quarter of fiscal year 2025-26, as aggressive investments in its quick commerce business continued to weigh on profitability despite robust revenue growth.

The company’s net loss surged 96% year-on-year to Rs 1,197 crore for the quarter ended June 30, up from Rs 611 crore in the same period last year. The loss also expanded sequentially, compared to Rs 1,081 crore in the March quarter.

Revenue from operations rose 54% to Rs 4,961 crore, driven by strong performance across its food delivery and Instamart verticals. The figure marked a 12.5% increase from Rs 4,410 crore in the previous quarter.

Swiggy’s adjusted EBITDA loss widened to Rs 813 crore, more than doubling from Rs 348 crore a year earlier. The EBITDA margin in its B2C business stood at -4.7%, narrowing slightly from -4.82% in the previous quarter but down 204 basis points year-on-year.

“Our food delivery business continues to deliver robust growth, while innovating to create new customer propositions,” said Sriharsha Majety, Swiggy’s managing director and group CEO. “Instamart witnessed a massive leap in average order value led by assortment expansion and Maxxsaver adoption.”

Swiggy’s core food delivery vertical reported gross order value (GOV) of Rs 8,086 crore, an 18.8% rise from the year-ago period. Revenue from the segment increased nearly 20% to Rs 1,800 crore. The platform’s average monthly transacting users (MTUs) in food delivery rose to 16.3 million, the highest addition in two years, reflecting a net gain of 1.2 million users sequentially.

However, profitability remained under strain. The food delivery adjusted EBITDA margin compressed to 2.4% of GOV, compared to 2.9% in the March quarter. The company attributed the decline to seasonal expenses associated with delivery partner availability during monsoon-related migration and its annual employee appraisal cycle.

Instamart emerges as a key growth engine

Instamart, Swiggy’s quick commerce arm, emerged as a key growth engine. GOV more than doubled year-on-year to Rs 5,655 crore, with a 21.1%  increase over the previous quarter. The average order value (AOV) rose 25.6% year-on-year to Rs 612, aided by expanded non-grocery selection and the adoption of Maxxsaver, a bundled savings feature encouraging larger baskets.

While the division continued to post losses — Rs 896 crore for the quarter — its contribution margin improved to -4.6% (up 97 bps sequentially), and adjusted EBITDA margin rose to -15.8% from -18.0%.

Swiggy added 41 new dark stores, bringing its total footprint to 1,062 across 127 cities, covering 4.3 million square feet. In comparison, rival Zomato added 243 dark stores in the same period, bringing its count to 1,544.

Swiggy’s Out-of-Home vertical maintained its positive momentum, with GOV rising 61% year-on-year and 21% sequentially. The segment sustained profitability for a second consecutive quarter, posting an adjusted EBITDA margin of 0.5%.

The company’s total expenses climbed nearly 60% to Rs 6,244 crore.

“We have moved past the March 2025 peak of losses in quick commerce,” Majety said. “But amidst significant competition, we will modulate investments to ensure we drive the business towards scale-led profitability.”