Swiggy Reports Q1FY26 Loss of ₹1,197 Cr Despite 54% Revenue Growth; Quick Commerce Drag Continues

Bengaluru, July 31, 2025 — Swiggy Limited (NSE: SWIGGY | BSE: 544285) has reported a consolidated net loss of ₹1,197 crore for the quarter ended 30th June 2025 (Q1 FY26). This represents a widening of losses from ₹611 crore in Q1 FY25, even as the company’s consolidated revenues saw a substantial 54% year-on-year (YoY) increase, reaching ₹4,961 crore. The profitability was significantly weighed down by continued losses in its quick commerce and platform innovation segments.

Despite the announcement, the shares of the company rose by 0.66% or ₹2.65 and closed at ₹403.75 on Thursday.

Consolidated Financial Performance (₹ crore)

For Q1 FY26, Swiggy’s consolidated revenue from operations reached ₹4,961 crore, demonstrating a robust 54% year-on-year growth from ₹3,222 crore in Q1 FY25, and a 12.5% sequential increase from ₹4,410 crore in Q4 FY25.

Total income for the quarter stood at ₹5,048 crore, compared to ₹3,310 crore in Q1 FY25 and ₹4,531 crore in Q4 FY25. Total expenses, however, rose to ₹6,244 crore in Q1 FY26, up from ₹3,908 crore in Q1 FY25 and ₹5,610 crore in Q4 FY25. Consequently, the consolidated net loss for Q1 FY26 widened to ₹1,197 crore, from ₹611 crore in Q1 FY25 and ₹1,081 crore in Q4 FY25.

The Earnings Per Share (EPS), both basic and diluted, for the quarter was ₹(5.04), compared to ₹(2.76) in Q1 FY25 and ₹(4.60) in Q4 FY25. For the full fiscal year 2025 (FY25), Swiggy’s revenue from operations was ₹15,227 crore, total income ₹15,623 crore, total expenses ₹18,725 crore, and net loss ₹3,117 crore, with an EPS of ₹(13.72). Auditor BSR & Co LLP issued an unmodified review opinion on these results.

Segment-Wise Revenue & Profitability

Swiggy’s logistics-heavy businesses continue to exert pressure on margins. Quick Commerce (Instamart) and Platform Innovations posted significant losses, while Food Delivery remained the sole profitable segment.

Segment Revenue (₹ crore)

Swiggy’s logistics-heavy businesses continue to exert pressure on margins, with Quick Commerce (Instamart) and Platform Innovations posting significant losses, while Food Delivery remained the sole profitable segment. In terms of segment revenue for Q1 FY26, Food Delivery contributed ₹1,799 crore, an 18.7% YoY increase from ₹1,515 crore in Q1 FY25. Quick Commerce revenue surged by 115.6% YoY to ₹806 crore from ₹374 crore.

Supply Chain & Distribution revenue grew by 78.1% YoY to ₹2,259 crore from ₹1,268 crore. Out-of-Home Consumption recorded ₹77 crore in revenue, an increase of 67.4% from ₹46 crore, and Platform Innovations generated ₹20 crore in Q1 FY26 revenue, up from ₹19 crore in Q1 FY25.

Regarding segment results, the Food Delivery business showcased operational resilience, reporting a segment profit of ₹202 crore in Q1 FY26, a substantial rise from ₹67 crore in Q1 FY25. However, the consolidated performance was significantly impacted by heavy losses from the Quick Commerce segment, which posted a loss of ₹(797) crore in Q1 FY26, widening from ₹(280) crore in Q1 FY25.

Supply Chain & Distribution also recorded a loss of ₹47 crore, a slight increase from ₹43 crore in Q1 FY25. Conversely, Out-of-Home Consumption turned profitable with a segment result of ₹5 crore, compared to a loss of ₹ 13 crore in Q1 FY25. Platform Innovations continued to incur losses, with a segment loss of ₹52 crore in Q1 FY26, widening from ₹16 crore in Q1 FY25.

The heavy losses from Quick Commerce and newer segments such as Swiggy Minis, Genie, and Snacc continued to drag the overall consolidated performance further into the red.

Standalone Financial Highlights

On a standalone basis, Swiggy reported a net loss of ₹991 crore for Q1 FY26. The standalone revenue from operations reached ₹2,693 crore, representing a 37.8% year-on-year increase. Despite the revenue growth, high advertising expenses of ₹1,119 crore and delivery expenses of ₹1,313 crore remained significant cost factors.

Corporate Developments

• ESOP Allotments: Swiggy allotted over 20.35 crore equity shares to its Employee Stock Option Trust and 36.4 lakh shares to employees under various ESOP schemes during the quarter.
• IPO Proceeds: The company raised ₹4,359 crore from its IPO earlier this year and is in the midst of post-IPO expense recognition, with ₹13 crore recorded in Q1FY25 under exceptional items.

Management Commentary

Sriharsha Majety, Managing Director & Group CEO, stated, “While our Food Delivery business continues to deliver strong unit economics, our investments in new segments like Instamart and Minis are part of our long-term growth roadmap. We remain focused on driving operational efficiency while expanding user touchpoints.”

Insights For Investors 

• Widening Losses Despite Revenue Growth:
  Swiggy’s net loss more than doubled YoY to ₹1,197 crore, even as revenue jumped 54% to ₹4,961 crore. Rising costs, especially from logistics-heavy segments, offset strong topline growth.
• Quick Commerce Drag Continues:
  The Quick Commerce (Instamart) segment remains a major loss center, with losses widening to ₹797 crore. Despite over 115% YoY revenue growth in this segment, it continues to pressure overall margins.
• Food Delivery Profitability a Bright Spot:
  The core Food Delivery segment reported ₹202 crore in segment profit, up from ₹67 crore last year, showing operational efficiency and profitability in Swiggy’s original business line.
• High Cost Structure:
  Total expenses rose to ₹6,244 crore, driven by high advertising spend (₹1,119 crore) and delivery costs (₹1,313 crore), indicating an aggressive market push and a cost-heavy growth strategy.
• Standalone Losses Reflect Core Challenges:
  Even excluding other subsidiaries, the standalone loss stood at ₹991 crore, signaling deep-rooted profitability issues across the board.
• IPO Funds Yet to Ease Pressures:
  Despite raising ₹4,359 crore through its IPO, losses continue, highlighting the time needed for new business segments to mature and contribute positively.
• Investor Sentiment Stable:
  Shares rose 0.66% post-results, showing investors remain cautiously optimistic about long-term growth, especially if operational efficiency improves.
• Segment Divergence:
  While Food Delivery and Out-of-Home Consumption turned profitable, new platforms like Swiggy Minis and Platform Innovations posted growing losses, dragging consolidated results.
• Strategic Focus on Long-Term Scale:
  Swiggy’s investments in newer verticals are part of a long-term strategy, but near-term investor gains may be limited by continued cash burn and execution risk.

Company Overview

Swiggy Limited, a publicly listed company on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), was incorporated in 2013. It is primarily engaged in providing on-demand food delivery services, quick commerce solutions, comprehensive restaurant solutions, and last-mile logistics across India. Over the years, Swiggy has strategically expanded its operations into adjacent verticals, including private brands, event management, and supply chain services, solidifying its position as a diversified player in the Indian consumer services sector.

REF:https://nsearchives.nseindia.com/corporate/SWIGGY_31072025154328_SE_Intimation_Outcome_Signed.pdf

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