Despite a healthy rise in revenue, foodtech firm Swiggy again reported heavy losses in the recently concluded quarter. The company reported a consolidated net loss of Rs 922 crore for the September quarter of FY27 (Q2FY27) as expenses continue to outpace revenue growth. Swiggy had reported a loss of Rs 1,092 crore in the same quarter last fiscal (Q2FY26).
The Bengaluru-based firm’s revenue from operations rose 36% Y-o-Y to Rs 7,571 crore in Q2FY27, up from Rs 5,561 crore a year ago. The company’s total expenses grew to Rs 8,703 crore in Q2FY27 from Rs 6,711 crore in the year-ago quarter.
The bulk of Swiggy’s losses comes from its quick-commerce business, Instamart. This segment reported an overall loss of Rs 895 crore for the quarter. Quick Commerce net order value (NOV) grew 31.4% Y-o-Y and 13.4% Q-o-Q to Rs 6,954 crore. Instamart added 69 darkstores in the quarter, equal to the cumulative additions of the last three quarters, bringing the total to 1,240 stores covering 5.2 million sq ft (+13.3% Y-o-Y).
“Contribution margin was -1.0% of GOV within the range guided earlier, as we added 69 net stores, taking the network to 1,240 stores across 133 cities, and invested in differentiated assortment, availability and service quality. The Adjusted EBITDA losses rose by Rs 46 Crore Y-o-Y to Rs 895 crore. We expect continued sequential growth in Q3 with operating margin improvement hereon,” said Sriharsha Majety Co-founder, MD & Group CEO of Swiggy.
Swiggy’s food delivery business delivered strong performance with gross order value (GOV) surging 17.7% Y-o-Y to Rs 10,054 crore. Adjusted EBITDA of this segment grew to Rs 341 crore from Rs 240 crore a year ago and the margin improved to 3.4% of gross order value from 2.8%.
“Toing, our standalone affordability app, is now in 50+ cities, and two in three of its new users are either new to Swiggy or long-term dormant. The annual guidance of 18-20% for Food delivery (ex -Toing) remains unchanged,” said Majety.
He added that a key update in the quarter was shareholder approval of the cap on foreign shareholding at 49.5% (on a fully diluted basis) to qualify as an Indian-Owned and Controlled entity. Majety said that the transition will allow Instamart to own inventory, and is expected to be completed over the next few quarters, with a net margin benefit of about 80 bps.