Swiggy's quarterly loss expands to 1,197 crore rupees in Q1 FY26, yet revenue increases by 54%
Swiggy, the popular Indian food delivery platform, has reported its financial results for the quarter ended June 30, 2025. The company's Out-of-Home vertical continued to show positive momentum, while its quick commerce arm, Instamart, demonstrated significant growth.
Sriharsha Majety, the Managing Director and Group CEO of Swiggy, revealed that the Out-of-Home vertical's gross order value (GOV) increased by 21% sequentially and 61% year-on-year. This growth was accompanied by an adjusted EBITDA margin of 0.5%, marking a second consecutive quarter of profitability for the vertical.
However, Swiggy's overall net loss expanded sequentially, with the company reporting a loss of Rs 1,197 crore for the quarter. This increase was attributed to seasonal expenses associated with delivery partner availability during monsoon-related migration and the annual employee appraisal cycle.
Revenue from operations rose 54% to Rs 4,961 crore for the same period. Swiggy's food delivery segment saw a nearly 20% increase in revenue, reaching Rs 1,800 crore. Despite this growth, the adjusted EBITDA margin in the food delivery business compressed to 2.4% of GOV.
Meanwhile, Instamart, Swiggy's quick commerce arm, posted losses of Rs 896 crore for the quarter. However, Instamart's GOV more than doubled year-on-year to Rs 5,655 crore, and its average order value (AOV) rose 25.6% year-on-year to Rs 612. Instamart added 41 new dark stores in the quarter, bringing its total to 1,062 across 127 cities.
Majety stated that Instamart has moved past the March 2025 peak of losses, indicating a potential path towards profitability for the quick commerce arm. Instamart's contribution margin improved to -4.6% (up 97 bps sequentially), and its total expenses climbed to Rs 3,649 crore.
Swiggy's platform's average monthly transacting users (MTUs) in food delivery rose to 16.3 million. The company's total expenses climbed nearly 60% to Rs 6,244 crore. The CEO also mentioned that they will modulate investments to ensure the business drives towards scale-led profitability.
In comparison, Swiggy's rival, Zomato, added 243 dark stores in the same period, bringing its count to 1,544. The financial results of Zomato for the same quarter have not been disclosed at the time of this report.
These financial results provide a snapshot of Swiggy's and Instamart's performance in the first quarter of the 2025-26 fiscal year. The company continues to navigate the challenges of the food delivery and quick commerce industries, striving for profitability while expanding its user base and services.
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