Mumbai: Swiggy reported a 96% rise in losses to Rs.1,197 crore in the first quarter of FY26 even as its revenues have risen 54% to Rs.4,961 crore from Rs.3,222 crore from the same period last year. This loss is higher than the loss reported in the previous quarter, even as revenues improved 12.5% on a sequential basis. The company’s Gross Order Value has risen to Rs.14,797 crore, a 45% YoY rise from last year.
The company’s total expenses increased to Rs.6,244 crore, a 60% rise from the same quarter last year, as the company has had to spend heavily on advertising, employee benefits, logistical expenses and higher delivery costs in its quick commerce segment.
Despite a 25.6% rise in Average Order Value (AOV) for its quick commerce business, the segment reported a steep loss of Rs.797 crore this quarter.
On the other hand, Swiggy’s food delivery business remains profitable, with an 18.8% YoY growth to Rs.8,086 crore. Due to the annual appraisal cycle in Q1 and the lack of delivery partners during the rains, the company has witnessed a lower adjusted EBITDA margin at 2.4% from 2.9% last quarter, a trend that the company expects to normalise later this year.
“Swiggy’s Food delivery business continues to deliver robust growth, while innovating to create new customer propositions which can open up the market further. 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.” Sriharsha Majety, MD & Group CEO, Swiggy, said.
Swiggy’s shares were down 2.54% on August 1, a day after the announcement. The company’s shares have lost 8% of their value since its IPO in November 2024, even as its main rival Zomato is facing the same challenges but has managed to eke out a profit this quarter.
