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Informist, Thursday, Oct. 30, 2025

By Arya S. Biju

MUMBAI – Food delivery and quick commerce platform Swiggy Ltd.'s consolidated net loss increased sharply year-on-year in the September quarter as its total expenses grew at a faster pace than its sales. The surge in the company's total expenses was primarily driven by costs related to advertising and sales promotion, which nearly doubled on year, and a double-digit jump in its expenses related to purchases of stock-in-trade and delivery charges. However, the company's top line for the quarter grew at its fastest pace since listing, supported by robust growth in gross order value.

Swiggy reported a consolidated net loss of INR 10.92 billion for the September quarter, compared to a consolidated net loss of INR 6.26 billion in the corresponding quarter a year ago. Analysts had expected the company to report a consolidated net loss of INR 11.05 billion. Its consolidated revenue for the quarter grew over 54% on year and over 12% on quarter to INR 55.61 billion, slightly above the analysts' estimate of INR 54.88 billion.  

The company's total expenses for the quarter rose nearly 56% on year to INR 67.11 billion. This was primarily because of an over 93% on-year rise in costs related to advertising and sales promotions to INR 10.39 billion. These expenses accounted for 15% of the total expenditure. Expenses related to purchases of stock-in-trade, which accounted for 35% of total costs, jumped up over 68% on year to INR 23.30 billion. Expenses on delivery and related charges for the quarter rose over 30% on year to INR 14.26 billion.

Depreciation and amortisation expenses for the quarter more than doubled on year to INR 3.04 billion. Analysts had expected rise in depreciation and amortisation costs from new store openings for the grocery delivery business to keep the profitability under stress.

Swiggy's business-to-consumer gross order value in the September quarter grew nearly 48% on year to INR 166.83 billion. Its consolidated adjusted earnings before interest, taxes, depreciation, and amortisation loss for the quarter was INR 6.95 billion, compared to an EBITDA loss of INR 8.13 billion in the trailing quarter and an EBITDA loss of INR 3.41 billion in the corresponding quarter a year-ago. Its business-to-consumer adjusted EBITDA margin as a percentage of gross order value declined 135 basis points on year but improved 111 bps on quarter to (-)3.6%. The average monthly transacting users on the platform grew 34% on year and 6% sequentially to 22.9 million.

FOOD DELIVERY

Revenue from the company's food delivery segment rose nearly 22% on year in the September quarter to INR 19.23 billion. Swiggy's food delivery business gross order value grew almost 19% on year to INR 85.42 billion, in line with its guidance, the company said. The food delivery category added 900,000 monthly transacting users during the quarter to reach a total of 17.2 million.

"Food delivery continued its growth trajectory in line with our guidance, with a steady 18.8% YoY GOV growth even amidst volatile macro-consumption trends and higher than-usual rainfall," the company said in a post-earnings press release. "This was led by acceleration in user-growth on the back of new propositions like Bolt, 99-Store, Deskeats and Health-focused curations; all aimed at covering the entire breadth of user expectations," Sriharsha Majety, managing director and chief executive officer of the company, said in the press release.

The food delivery contribution margin for the quarter remained at 7.3% of gross order value, as in the trailing quarter. "Growth remains the overarching priority, while continuing our progress towards the guided steady-state margin of 5% of GOV," Swiggy said. The food delivery business' adjusted EBITDA more than doubled on year and grew 25% sequentially to INR 2.40 billion. Adjusted EBITDA margin of the segment rose to 2.8% of gross order value in the reporting quarter.

Amid heightened competition in the segment, the company had tweaked its "own proposition for ' Swiggy One' on a targeted basis, to ensure no short-term loss of users or orders" which led to higher subsidised deliveries. However, the impact of these elevated subsidised deliveries was offset by a hike in platform fee, Swiggy said.

QUICK COMMERCE

Revenue from the company's quick commerce segment doubled on year to INR 9.80 billion in the reporting quarter from INR 4.90 billion. The gross order value of Swiggy's quick commerce business grew to INR 70.22 billion, up 108% on year and over 24% on quarter. During the quarter, the average order value in this category grew around 40% on year and 14% sequentially to INR 697 per order, led by continued expansion of non-grocery items and larger-basket buying behaviour across user segments. Its quick-commerce contribution margin for the quarter was (-)2.6% of gross order value, compared to (-)1.9% in the year-ago quarter.

Swiggy added 900,000 monthly transacting users in the segment, taking the total average monthly transacting users to 12 million. The company added 40 dark stores to its network in Jul-Sept to take the overall tally to 1,102 across 128 cities. Of the 40 dark stores added in the quarter, about 20 were megapods. "We will expand our city-reach incrementally as the current network matures, and consumers in smaller cities also latch on to the Quick-commerce proposition," Swiggy said.

However, store-additions are neither the primary growth-lever nor a growth-bottleneck for the company in the near-term, Swiggy said, adding that it will provide more information about the next phase of store-growth in due course.

Revenue from the company's supply chain and distribution business grew over 76% on year to INR 25.60 billion. Adjusted EBITDA loss from the segment was INR 460 million, compared to an EBITDA loss of INR 740 million in the year-ago quarter.

Swiggy announced its earnings post-market hours Thursday. Ahead of the earnings, shares of the company closed marginally lower at INR 417.95 on the National Stock Exchange.  End

Edited by Ashish Shirke

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