Swiggy Ltd. reported improved financial performance in the first quarter of FY27, with net loss narrowing significantly and revenue growing strongly in double digits. The company’s latest results are evidence of strong performance in its food delivery and quick commerce business as well as the rapidly expanding Instamart segment.
Swiggy reported a net loss of ₹791 crore in the April-June quarter, improving substantially from ₹1,197 crore in the corresponding period last year. “We are making progress and continue to improve operational efficiency, and we are going to invest in growth,” the company stated.
Revenue Surges 37%
Swiggy's revenue from operations rose 37.3% year-on-year to ₹6,812 crore as compared to ₹4,961 crore in the quarter ending in the previous year.
The robust revenue growth was driven by increased order volumes across food delivery and quick commerce, along with increased customer engagement and average order values.
Greater platform activity was also an advantage for the company, with average monthly transacting users increasing 27.4% year-on-year.
Operational Losses Continue to Improve
Swiggy's performance also showed steady progress.
Its EBITDA loss shrank to ₹650 crore from ₹954 crore in the year-ago quarter.
But the company said that additional investment to improve delivery partner availability impacted margins sequentially. In fact, adjusted EBITDA was 70 basis points higher year-on-year with better take rates and increased operating leverage.
Swiggy reiterated its medium-term target of achieving an adjusted EBITDA margin of 5% on Gross Order Value (GOV).
Food Delivery Business Remains Strong
Swiggy’s core food delivery business continued to perform very well despite some short-term disruptions.
The company reported 17.4% year-on-year growth in Gross Order Value (GOV) for food delivery.
The management also stated that restaurant cancellations in the early part of the quarter had an impact on growth. If we adjust for these disruptions, like-for-like GOV growth would have been around 18% in the first quarter.
Swiggy is confident of delivering 18–20% long-term growth in its food delivery business, excluding its new Toing platform.
Instamart Continues Rapid Expansion
Quick commerce remains one of Swiggy’s fastest-growing businesses.
Instamart reported a 39.8% year-on-year increase in Gross Order Value, signifying continued customer demand for ultra-fast grocery deliveries.
In fact, Instamart achieved contribution margin break-even, which is a significant operational accomplishment.
The company revealed that:
- More than 45% of Instamart stores became contribution margin positive during the quarter.
- That is compared with only 30% in the previous quarter.
- We expect contribution margins to remain between 0% and -1% in the next few quarters as expansion continues.
Swiggy also plans to add around 75 new Instamart stores in the second quarter of FY27.
Long-Term Growth Strategy
Swiggy expects its overall quick commerce business to achieve adjusted EBITDA break-even once its annualised Net Order Value (NOV) reaches about ₹60,000 crore.
The company's long-term target is to exceed ₹1 lakh crore in annual NOV while maintaining an adjusted EBITDA margin in the range of 4–5%.
Other Business Highlights
Swiggy reported several additional operational achievements during the quarter:
- Other income increased sharply from ₹87 crore to ₹211 crore.
- GOV from out-of-home consumption grew by 44.8%, indicating further recovery in dining experiences.
- The Bolt service is now available in more than 700 cities.
- The Eat Right initiative is now contributing about 15% of total food delivery volumes and has higher average order values.
- Swiggy has now launched the Toing platform in 50 cities and is investing in customer acquisition.
The company also confirmed that it has discontinued Snacc, concluding that the business category lacks long-term growth potential.
Foreign Shareholding Proposal
Swiggy also announced progress regarding its foreign investment structure.
The company expects shareholder approval to increase foreign shareholding to 49.5%, with the transition likely to be completed over the next two to four quarters.
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