Swiggy’s adjusted EBITDA loss improved to ₹651 crore from ₹813 crore in the year-ago period
Swiggy Ltd narrowed its losses in the June quarter as revenue continued to expand, but the company’s closely watched quick commerce business delivered slower-than-expected growth after prioritising profitability over market share.The food and grocery delivery company reported a consolidated net loss of ₹791 crore for the first quarter of FY27, compared with ₹1,197 crore a year earlier. Revenue from operations rose 37.3% year-on-year to ₹6,812 crore, while adjusted revenue increased 34% to ₹7,112 crore. Adjusted EBITDA loss improved to ₹651 crore from ₹813 crore in the year-ago period.“Our efforts over the last few quarters to reset our user base, economics and experience have together made the business much stronger and increased the staying power. This milestone marks a pivotal transition, as growth increasingly serves as a driver for profitability, rather than a compromise against it,” Group CEO Sriharsha Majety said in the shareholder letter.Instamart: Margin milestone comes at the cost of growthInstamart achieved its long-promised contribution margin break-even target in May, with contribution margin improving to -0.2% of gross order value (GOV), a 440 basis-point improvement from a year earlier. However, the focus on unit economics weighed on growth.Quick commerce GOV rose 39.8% year-on-year to ₹7,907 crore, but increased only 0.3% sequentially, missing analyst estimates of ₹8,460 crore. Adjusted EBITDA loss narrowed to ₹778 crore, but remained higher than Visible Alpha’s estimate of ₹735.5 crore.Growth indicators also softened. Orders increased just 1.7% sequentially to 114.5 million, while average order value declined to ₹691 from ₹700 in the previous quarter. Swiggy added 28 dark stores, taking its network to 1,171 stores across 131 cities. In comparison, rival Blinkit reported 19% sequential growth in net order value and posted an adjusted EBITDA profit of ₹102 crore.Swiggy said its four-week trending NOV growth had accelerated to 10% by late July from 1% in the preceding four weeks, supported by improving customer retention.The company expects contribution margins to remain between 0% and -1% over the next couple of quarters as it increases investments to accelerate growth. Rather than providing a timeline for adjusted EBITDA profitability, Swiggy said Instamart will break even when it reaches an annualised ₹60,000 crore NOV run rate and 250-300 million orders per quarter, implying both significantly higher scale and better margins.Food delivery: New formats drive the next phaseFood delivery remained profitable, with GOV growing 17.4% year-on-year to ₹9,490 crore, while adjusted EBITDA stood at ₹292 crore, representing a 3.1% margin. Monthly transacting users increased 17.8% to 19.2 million. Swiggy said growth would have been around 18% after adjusting for LPG-related restaurant disruptions that led to higher order cancellations.Rather than relying solely on discounts, Swiggy is expanding specialised formats to widen demand. Its affordability-focused standalone app Toing is now live in 50 cities, with two-thirds of new users either joining Swiggy for the first time or returning after being inactive. Alongside 99 Store, Bolt, Eat Right, Desk Eats, Late Night Eats and Food on Train, the company is targeting specific consumer occasions while defending market share against rising competition.Swiggy maintained its guidance of 18-20% food delivery GOV growth, excluding Toing, while reiterating its medium-term adjusted EBITDA margin target of 5% of GOV.The company’s shared closed at Rs 295.80, up by 2.99 per cent at BSE.Published on July 30, 2026
