Food and grocery delivery platform Swiggy on July 31 reported that its net loss widened almost 96 percent year-on-year (YoY) to Rs 1,197 crore in the first quarter (Q1) of financial year 2025-26 (FY26), up from Rs 611 crore in the same period a year ago.
The Bengaluru-based firm had reported a loss of Rs 1,081 crore in the previous quarter, as rapid expansion in its quick commerce vertical Instamart took a toll on the company’s bottom line.
Swiggy’s revenue from operations rose 54 percent YoY to Rs 4,961 crore in Q1, up from Rs 3,222 crore a year ago. It had reported a revenue of Rs 4,410 crore in the previous quarter.
In comparison, its chief rival Zomato posted a massive 90 percent year-on-year (YoY) decline in quarterly profit at Rs 25 crore in Q1, while its revenue rose 70.4 percent YoY to Rs 7,167 crore.
Swiggy's adjusted EBITDA loss for the quarter stood at Rs 813 crore for the June quarter, up 134 percent from Rs 348 cr0re in the year ago period. This figure stood at Rs 732 crore in the previous quarter. Meanwhile, its total expenses increased nearly 60 percent to Rs 6,244 crore in the quarter ended June, up from Rs 3,908 crore a year ago and Rs 5,609.6 crore a quarter ago.
The platform's average monthly transacting users (MTUs) grew 35.2 percent YoY to 21.6 million during the quarter.
The firm's food delivery revenue rose nearly 20 percent YoY to Rs 1,800 crore in Q1FY26. Meanwhile the gross order value (GOV) of this vertical grew 18.8 percent YoY to Rs 8,086 crore, from Rs 6,808 crore in Q1 FY25. It also added 1.2 million MTUs during the quarter on a sequential basis to reach 16.3 million - the highest in a single quarter over the last two years.
“Q1 is a seasonal low for availability of delivery partners given reverse-migration and beginning of rains, and hence incremental investments into their availability are made every year by Food delivery platforms. Bunched with our regular annual appraisal cycle in Q1, this has kept our Adjusted EBITDA margin at 2.4 percent (vs 2.9 percent in Q4); a seasonal impact which will normalise as the year progresses,” Swiggy Group CEO and MD Sriharsha Majety, talking about the company’s food delivery business.
Revenue for Swiggy's quick commerce business, Instamart, more than doubled to Rs 806 crore on an annual basis. GOV growth accelerated to 107.6 percent YoY and 21.1 percent QoQ to Rs 5,655 crore, with 1.2 million MTUs added .
However, the company added just 41 dark stores during the quarter, taking its total store count to 1,062. In comparison, Zomato added 243 new stores in the June quarter, taking its total dark store footprint to 1,544.
“In Q1, we expanded operations to 127 cities (vs 124 in Q4), and added darkstores selectively for alleviating capacity constraints or creating coverage in specific pockets that demonstrated the need. Our focus has been on improving wallet-share by increasing basketsize, which is one of the prime determinants of long-term profitability,” Majety said.
On July 31, Swiggy's shares on BSE closed 0.7 percent higher at Rs 404 apiece.
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