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Informist, Thursday, Jul. 30, 2026

 

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--Swiggy Apr-Jun consol net loss INR 7.91 bln
--Analysts saw Swiggy Apr-Jun consol net loss at INR 7.30 bln 
--Swiggy Apr-Jun consol revenue INR 68.12 bln 
--Analysts saw Swiggy Apr-Jun consol revenue at INR 67.61 bln 
--Swiggy Apr-Jun consol net loss INR 7.91 bln vs loss INR 11.97 bln year ago 
--Swiggy Apr-Jun consol revenue INR 68.12 bln vs INR 49.61 bln year ago 
--Swiggy Q1 consol food delivery sales INR 22.08 bln vs INR 18.00 bln yr ago 
--Swiggy Apr-Jun consol quick commerce revenue INR 12.32 bln vs INR 8.06 bln 
--Swiggy Q1 consol supply chain sales INR 31.95 bln vs INR 22.59 bln yr ago 
--Swiggy Apr-Jun consol advt expenses INR 11.60 bln vs INR 10.36 bln yr ago 
--Swiggy Q1 consol delivery expenses INR 17.50 bln vs INR 13.13 bln year ago 
--Swiggy Apr-Jun consol total expenses INR 78.13 bln vs INR 62.44 bln yr ago 
--Swiggy Q1 consol adjusted EBITDA loss INR 6.51 bln vs loss INR 8.13 bln 
--Swiggy Q1 B2C gross order value INR 189.26 bln vs INR 147.97 bln yr ago 
--Swiggy Q1 food delivery gross order value INR 94.9 bln vs 80.9 bln yr ago 
--Swiggy Q1 quick-commerce gross order value INR 79.07 bln vs INR 56.55 bln 
--Swiggy Apr-Jun food delivery contribution margin 7.6% vs 7.3% year ago 
--Swiggy Apr-Jun quick commerce contribution margin (-)0.2% vs (-)4.6% yr ago 
--Swiggy Q1 quick-commerce avg order value INR 691 vs INR 612 year ago 
--Swiggy active dark stores 1,171 on Jun 30 vs 1,143 qtr ago 
--Q1: LPG disruption hit growth in Q1 food delivery order value
--Q1: Retain food deliver gross order value growth guidance of 18-20%
--Q1: 25% of quick commerce network had 3-5% contribution margin Q1
--5 out of top 7 cities had positive constribution margin in Q1
--Instamart constribution margin seen flat or fall up to 100 bps Q2, Q3
--Expect to add 75 stores in Jul-Sept
 

 

By Avishek Rakshit and Shakshi Jain

 

KOLKATA/NEW DELHI – Swiggy Ltd. Thursday narrowed its losses considerably for the June quarter but disappointed the Street. The company reported a consolidated net loss of INR 7.91 billion for the June quarter, which was worse than the Street's estimate of INR 7.30 billion of loss. The loss in the June quarter was much lower than the net loss of INR 12 billion the company posted in the year-ago quarter. 

 

The revenue, however, rose over 37% on year to a tad above INR 68 billion. The Street's estimate for revenue was about INR 68 billion. The company's gross order value for the food delivery business grew 17.4% on year to nearly INR 95 billion and adjusted earnings before tax, interest, depreciation, and amortisation increased by INR 1 billion to reach nearly INR 3 billion in the June quarter. 

 

Its quick commerce business, housed under Instamart, reported around 40% on year growth in gross order value to INR 79 billion in the June quarter and its contribution margin improved by 440 basis points on year to (-)0.2%, with adjusted EBITDA losses down by INR 800 million on quarter.

 

In a letter to its shareholders, submitted on the bourses, Swiggy said one of the factors influencing a slight slow-down in food deliveries in the June quarter was the marked increase in restaurant driven cancellations during the initial part of Apr-Jun owing to LPG led disruptions leading to higher percentage of unfulfilled orders. Normalised for this, the like-to-like gross order value growth would have been 18%. 

 

The other important factor influencing the overall demand has been the continued expansion of the value led offerings. The company saw good traction on the 99 Store on the Swiggy platform and more recently on the Toing platform which are solving for the affordability use case and unlocking new category growth levers. In the short term, Swiggy expects some inter-play of demand levers on one platform versus the other.

 

"We remain confident of our ability to deliver on the stated guidance of 18-20% (outside of Toing). We continued to see healthy user addition (+17.8% YoY) and basket value increase (+4.8% YoY) in Q1," the company's management said in the letter.

 

The company's contribution margin losses from the quick commerce business had peaked at (−)5.6% of the gross order value in the March quarter of 2024-25 (Apr-Mar). "Since then, we continued to make steady progress on our goal of achieving break-even within Q1FY27. Through this period, we chose to stay vested in our chosen strategy of incentivising growth through profitability rather than seeing it as a trade-off," the company said in the letter.

 

This meant making hard choices on monetisation, build-up of larger baskets through assortment and availability expansion, growing and maturing non-grocery mix, improving advertising revenue and securing operating leverage. 

 

The company's consolidated food delivery sales increased 23% on year to INR 22 billion in the June quarter and revenue from the Instamart business increased 53% on year to over INR 12 billion. Consolidated sales from supply chain increased 41% on year to nearly INR 32 billion. 

 

"Food delivery economics continue to strengthen as we innovate across aordability and consumer propositions to broaden adoption and unlock the next 100 million users in the category," Sriharsha Majety, managing director and group chief executive officer at Swiggy, said in a statement. "Out-of-home consumption remains a profitable, fast-growing part of our business, making meaningful progress. In quick commerce, we delivered contribution breakeven exactly as we guided a year ago- a milestone that marks a real inflection point for the business."

 

In the letter, Swiggy said it expects to hit overall Adjusted EBITDA break-even at a scale of INR 600 billion of run rate annualised net order value with 5-6% contribution margin equating to INR 30 per order. Over the last five quarters, Swiggy added INR 28 per order and needs to add another INR 30 per order to break-even at the above volume run-rate.

 

In the June quarter, its consolidated adjusted EBITDA losses were INR 6.51 billion as against INR 8.13 billion in the year-ago quarter. The company's expenses on advertisement went up by around 12% on year in the June quarter to INR 11.60 billion and delivery expenses increased 33% on year to 17.50 billion. Total expenses increased over 25% on year to a little over INR 78 billion.  

 

The company's business-to-consumer gross order value for the quarter was INR 189.26 billion, up from INR 147.97 billion a year ago. In the quick commerce business, the average order value improved to INR 691 from INR 612 in the year-ago quarter. It exited the quarter with a total of 1,171 active dark staores compared with 1,143 as of Mar. 31. 

 

In the quick commerce business, more than 45% of the company's store network turned contribution margin positive in the June quarter compared with 30% in the trailing quarter. "During the quarter, 25% of the network operated at 3-5% CM (contribution margin), with 5 out of the top 7 cities turning Contribution margin positive," the company said.

 

Swiggy said its has built a strong network across the 131 cities it currently operating in with store utilisation at approximately 40% with significant headroom for further growth. Simultaneously, the underlying volume growth in high growth areas necessitates new store opening and Swiggy expects to add 75 stores in the ongoing quarter.

 

For Instamart, the company expects contribution margins to be range bound in the zero to (-)100 basis point territory for the next couple of quarters.

 

Swiggy said being an Indian-owned and controlled company will allow Instamart, the company's quick-commerce business, to directly own and sell inventory while continuing to run its marketplace business, which will add around 80 basis points to Swiggy's contribution margin, the company said in a letter to shareholders. After the company's domestic ownership crossed 50% on Jul. 1, its board, on Jul. 23, approved limiting Swiggy's aggregate foreign shareholding to 49.5% to qualify for Indian-owned and controlled company status.

 

The board's decision will be put to vote before shareholders on Aug. 18 in the company's annual general meeting. Swiggy expects the transition to an Indian-owned company to be complete over 2-4 quarters after approval from shareholders. "We do not expect any disruption to the customer experience or to our supply relationships during this period, and our teams have been preparing the operational groundwork in parallel so that we are ready to move in a seamless fashion once we receive the necessary approvals," the company said.

 

Thursday, shares of the company ended almost 3% higher at INR 295.91 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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