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Informist, Thursday, Jul. 31, 2025

By Shakshi Jain

NEW DELHI – Food delivery and quick commerce platform Swiggy Ltd.'s consolidated net loss widened in the June quarter due to a sharp year-on-year rise in its total expenses, led by a more than two-fold jump in its advertising and sales promotion costs. Overall, the company reported mixed results for the quarter, with its top line surpassing Street's expectation but the bottom line falling short of the consensus estimate.

Swiggy reported a consolidated net loss of INR 11.97 billion for the June quarter, up from INR 6.11 billion a year ago. Analysts had expected the company to report a consolidated net loss of INR 9.74 billion. The company's consolidated revenue, however, rose 54% year and over 12% sequentially to INR 49.61 billion in Apr-Jun, beating analysts' estimate of INR 48.95 billion. Other income of the company fell marginally on year to INR 870 million during the quarter. 

Revenue from the company's food delivery segment rose 19% on year in the June quarter to INR 18 billion. The quick-commerce business revenue more than doubled from a year ago to INR 8.06 billion during the quarter. Swiggy's supply chain and distribution segment grew 78% in Apr-Jun to contribute INR 22.59 billion to the company's overall top line while the out-of-home consumption business contributed 770 million, up 67% on year. Its platform innovations segment added INR 200 million during the reporting quarter, up 5% on year.

Swiggy's total expenses rose nearly 60% on year to INR 62.44 billion during the June quarter, led by a 133% jump in the company's advertising and sales promotion costs to INR 10.36 billion. The expenses related to purchases of stock-in-trade rose 72% on year to INR 20.58 billion during the three-month period. The company's employee benefit expenses grew 16% on year at INR 6.86 billion and costs tied to delivery and related charges increased almost 26% on year to INR 13.13 billion in Apr-Jun.  

Swiggy's business-to-consumer gross order value in the June quarter was INR 147.97 billion, up 45% on year. The company's Swiggy platform reported consolidated adjusted earnings before interest, taxes, depreciation, and amortisation loss of INR 8.13 billion for Apr-Jun, up from INR 3.48 billion in the year-ago quarter. Average monthly transacting users on the platform grew 35.2% on year and 9% on quarter to 21.6 million.

FOOD DELIVERY

Swiggy's food delivery gross order value in Apr-Jun grew almost 19% on year to INR 80.86 billion. This growth was within the company's guided range, Swiggy said. The food delivery category added 1.2 million monthly transacting users during the quarter to reach a total of 16.3 million. It was the maximum number of monthly transacting users added in a single quarter over the last two years, the company said.

The food delivery contribution margin for the quarter was 7.3% of gross order value, up from 6.4% in the year-ago quarter. However, on a sequential basis, the metric contracted 43 basis points, impacted by higher investments in delivery costs to manage lower availability of delivery partners due to reverse-migration and monsoons, the company said.

The company has maintained its guidance of 5% adjusted EBITDA margins in the medium-term. Overall, there is no structural change in the economics of the business, and we expect to continue to reap the benefits of higher monetisation and strong operating leverage going forward, Swiggy said.

QUICK COMMERCE

The gross order value of Swiggy's quick commerce business grew to INR 56.55 billion, up 108% on year and 21% sequentially. The average order value in this category stood at INR 612 during the quarter, reflecting a 25.7% year-on-year growth and a 16% sequential rise.

The category recorded a 12% sequential rise in the number of monthly transacting users to 11.1 million. The company added 41 dark stores to its network in Apr-Jun to take the overall tally to 1,062 across 127 cities. 

Its quick-commerce contribution margin for the quarter improved to (-)4.6% of gross order value from (-)3.2% in the year-ago quarter. The contribution margin was in line with the company's guided trajectory, Swiggy said. The company expects the quick-commerce contribution margin to break even between the December quarter and the June quarter of FY27.  

Swiggy's shares ended Thursday's session 0.7% higher at INR 403.75 on the National Stock Exchange. The company announced its earnings post-market hours. End

With input from Arya S. Biju

Edited by Saji George Titus

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