Swiggy slides after Q1 net loss widens to Rs 1,197 cr

Revenue from operations rose 53.97% year-on-year to Rs 4,961 crore in Q1 FY26.

The company reported pre-tax loss of Rs 1,197 crore in Q1 FY26 as against pre-tax loss of Rs 598 crore in Q1 FY25.

Total expenses climbed 59.77% to Rs 6,244 crore in Q1 FY26, compared with Rs 3,908 crore in Q1 FY25. Advertising and sales promotion were at Rs 1,036 crore (up 132.80% YoY), delivery and related charges were at Rs 1,313 crore (up 25.52% YoY), employee benefit expenses stood at Rs 686 (up 16.46% YoY) and finance cost was at Rs 41 crore (up 105% YoY) during the period under review.

Swiggy's food delivery business reported a strong performance in the first quarter, with gross order value (GOV) rising 18.8% year-on-year to Rs 8,086 crore, in line with company guidance. Monthly transacting users (MTUs) also increased by more than 1.2 million quarter-on-quarter, marking a 16% year-on-year growth. The company's Adjusted EBITDA margin stood at 2.4%, down from 2.9% in the previous quarter. This decline was attributed to seasonal investments aimed at boosting delivery partner availability during the monsoon season, coupled with the effects of the annual appraisal cycle in Q1. Swiggy expects these impacts to normalize as the year progresses.

Instamart's gross order value (GOV) grew sharply by 108% year-on-year and 21.1% quarter-on-quarter, reaching Rs 5,655 crore. The company strategically added 41 darkstores during the quarter, expanding its network to a total of 1,062 darkstores spanning 4.3 million square feet across 127 cities.

Average Order Value (AOV) jumped 25.6% YoY to Rs 612, driven by a significantly expanded product selection and a higher non-grocery mix within Instamart's GOV. The success of its basket-building proposition, Maxxsaver, further boosted AOV by 16% quarter-on-quarter.

Contribution margin improved to -4.6% (+97 bps QoQ), as expanded basket-sizes and optimization of customer incentives more than offset the network underutilization drag. Overall, Quick Commerce posted a Rs 896 crore loss for the quarter, and Adjusted EBITDA margin improved to -15.8% from -18.0% in Q4.

Sriharsha Majety, MD & Group CEO, Swiggy, said 'Swiggy's Food delivery business continues to deliver robust growth, while innovating to create new customer propositions which can open up the market further. Bolt and 99-store are efforts to ensure that we keep challenging the status quo, and help our restaurant partners garner new users and incremental consumption.

Instamart witnessed a massive leap in AOV led by assortment expansion and Maxxsaver adoption. Focus has been on agile and calibrated network expansion; and improving wallet-share by increasing basket-size which is one of the prime determinants of long-term profitability. We have moved past the Mar-25 peak of losses in Quick-commerce, but amidst significant competition we will modulate investments to ensure that we drive the business towards scale-led profitability.

Swiggy is India's pioneering on-demand convenience platform, catering to millions of consumers each month. Founded in 2014, its mission is to elevate the quality of life for the urban consumer by offering unparalleled convenience, enabled by over 6 lakh delivery partners. With an extensive footprint in food delivery, Swiggy Food collaborates with over 2.5 lakh restaurants across 720+ cities.

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