Swiggy, Symbotic drive SoftBank Vision Fund gains; Group posts $2.87 billion profit in Q1

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SoftBank Group’s Vision Funds recorded strong investment gains in the first quarter of fiscal year 2026, buoyed by rising valuations in public portfolio companies, including India’s Swiggy and US-based Symbotic.

Overall, the Japanese conglomerate reported a consolidated net income of 421.8 billion yen (Rs 23,199 crore or $2.87 billion) attributable to its shareholders for the three months ended June 30, 2025, a sharp reversal from a net loss of 174.3 billion yen (Rs 9,586 crore) in the same period last year.

Swiggy drives gains after earlier setback

The group’s Vision Funds business, which includes Vision Fund 1, Vision Fund 2, and the Latin America Funds, posted a total investment gain of 726.8 billion yen (Rs 39,974 crore or $4.94 billion) during the quarter, as against gain of 177.26 billion yen (Rs 9749 crore) last quarter.

After accounting for operating costs, the Vision Funds segment reported a pre-tax income of ¥451.4 billion (Rs 24,827 crore) for the quarter versus a loss in the same quarter last year.

Vision Fund 1 contributed 517.4 billion yen (Rs 28,457 crore), driven by a rise in the share prices of public holdings such as Coupang and Auto1, while Vision Fund 2 added 114.5 billion yen (Rs 6,298 crore) on the back of gains in Symbotic and Swiggy.

"The gain at SVF2 was mainly due to unrealized valuation gains (net) totaling 45,508 million yen for investments held at the first quarter-end. These gains were largely attributable to share price increases of public portfolio companies, such as Symbotic Inc. and Swiggy Limited," the financials note.

SoftBank further said, “The fair value of investments held at the first quarter-end increased by 3.5% from the previous quarter-end — up 22.4% QoQ for public portfolio companies, mainly due to share price increases in Symbotic and Swiggy.”

Since inception, Vision Fund 1 has now generated a gross gain of $27 billion, while Vision Fund 2 continues to carry a gross loss of $22.1 billion.

However, its performance in exiting from investments and distributing profits has been patchy over last few quarters. The Vision funds had a cumulative investment gain of $5 billion out of total committed capital of $172.2 billion as of end of the June.

Swiggy stock performance

Swiggy’s stock delivered a rebound in the April–June quarter (Q1 FY26), with a standout rally in June driving much of the gains. After starting the quarter around Rs 330 and dipping to a low of nearly Rs 305 in start of May, the stock surged over 20 percent in June alone, closing the quarter near Rs 400-406. This upward movement fuelled by renewed investor confidence and a broader recovery in platform stocks helped lift Swiggy’s valuation, contributing to SoftBank Vision Fund 2’s investment gains during the period.

The rally extended into early July, with the stock touching highs around Rs 420 before cooling slightly in August. Swiggy’s stock continues to trade above its IPO price of Rs 390.

This recovery followed a muted March quarter, during which the stock had slipped below its IPO price amid widening losses.

March quarter marked by markdowns in India holdings

In the preceding March quarter, Vision Fund 2 had taken a hit from its India-linked holdings. The fair value of investments held by the fund fell 2.7 percent sequentially, with public portfolio companies declining 21.7 percent, “mainly due to share price declines in Swiggy and Ola Electric Mobility,” according to the company’s financials.

SoftBank swings back to black with $3.5 billion Q4 profit, but Swiggy, Ola markdowns sour India bets

While Vision Fund 1 posted a strong gain led by ByteDance and Coupang, Vision Fund 2 recorded a quarterly investment loss of $708 million. Swiggy, in particular, had reported a wider net loss of Rs 1,081 crore for the quarter, with deepening EBITDA losses due to mounting investments in its quick commerce arm.

Ola Electric too posted a net loss of Rs 564 crore in the October–December quarter, amid intense competition and price-led promotions. Both Swiggy and Ola continued to trade below their IPO issue prices, putting pressure on SoftBank’s potential exit timelines.

Softbank India chart

Softbank's Vision Fund holds $45 billion worth of late stage companies ready to list soon, up from $36 billion at the end of March. It took a complete exit from Paytm, Zomato and Policybazaar as of June 2025.

For the remaining listed portfolio, SoftBank has deployed a total of $1.67 billion across Swiggy, Ola Electric, Delhivery, and FirstCry (BrainBees Solutions), as of June 30, 2025.

According to the group’s latest earnings disclosure, these holdings are now valued at approximately $2.46 billion, implying an unrealised gain of around $793 million. While Swiggy, Delhivery, and FirstCry have each delivered mark-to-market gains, Ola Electric remains in the red with a current valuation below its invested amount.

Swiggy (SVF2) has generated a gross gain of $357 million on an investment of $450 million, with a 1.8x MOIC. Ola Electric Mobility, also under SVF2, has posted a gross loss of $138 million on a $556 million investment (0.8x MOIC). In the SVF1 portfolio, Delhivery has delivered a gross gain of $263 million against a $397 million investment, resulting in a 1.7x MOIC, while FirstCry (BrainBees Solutions) remains an active position, with a gross gain of $311 million on a $268 million investment, translating to a 2.2x MOIC.

While Softbank has been cautious in making new investments in India, it is closely watching a fresh wave of IPOs from its India portfolio, with companies like Meesho and Lenskart on the radar.

"There are a number of upcoming IPOs — PayPay, Klarna, Chakra Robots, our India portfolio Meesho, Lenskart, and the fintech portfolio overall," said Navneet Govil, CFO of SoftBank Investment Advisers, during the company’s Q1 FY2025 earnings call., while giving an update on SVF2 performance.

"Our India portfolio continues to do well, our fintech portfolio continues to do well, so over time, we'll continue to see value being unlocked by these investments,” he added.

Eyewear retailer Lenskart filed its draft papers with SEBI last week, aiming to raise Rs 2,150 crore via a fresh issue, while existing shareholders plan to offload up to 13.2 crore shares through an Offer for Sale (OFS). SoftBank is set to offload the largest chunk among institutional shareholders, offering 2.55 crore shares.

Lenskart IPO: SoftBank, Kedaara and others sell shares at steep discounted valuation of $1 billion to founder Peyush Bansal

On the other hand, Meesho has confidentially filed its DRHP to raise Rs 4,250 crore in primary capital through an IPO. In the run up to its IPO, Meesho also recast its board, converted into a public entity and also completed its flip back to India, Moneycontrol had exclusively reported.