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Foodtech major Swiggy reported a consolidated net loss of ₹922 Cr in the September quarter of FY27, narrowing 16% from ₹1,092 Cr in the year-ago quarter. However, its loss widened 17% from ₹791 Cr in the preceding quarter. Operating revenue increased 36% YoY and 11% QoQ to ₹7,571 Cr. Including other income of ₹212 Cr, total income stood at ₹7,783 Cr. Swiggy’s consolidated adjusted EBITDA loss widened to ₹760 Cr from ₹695 Cr a year earlier and ₹651 Cr in Q1 FY27, with higher losses at Instamart and its newer businesses weighing on profitability. Across its consumer-facing businesses, gross order value (GOV) increased 25% YoY to ₹20,793 Cr. Average monthly transacting users rose 21% to 27.8 Mn. Total expenses increased 30% YoY to ₹8,703 Cr. Swiggy’s consolidated cash balance stood at ₹13,662 Cr at the end of September, down ₹705 Cr from the preceding quarter. Instamart Steps Up Investments Ahead Of IOCC Conversion Swiggy’s quick commerce arm Instamart reported operating revenue of ₹1,306 Cr, up 33% YoY and 6% QoQ. Its segment loss widened to ₹764 Cr from ₹739 Cr a year earlier and ₹651 Cr in Q1 FY27. Adjusted EBITDA loss increased to ₹895 Cr from ₹849 Cr a year earlier and ₹778 Cr in the preceding quarter. Adjusted EBITDA margin improved marginally to -9.7% of GOV from -9.8% in Q1 FY27. Swiggy said it believes Instamart’s adjusted EBITDA losses peaked in Q2 FY27. It expects another quarter of double-digit sequential net order value (NOV) growth in Q3 FY27, alongside an improvement of around 100 basis points in adjusted EBITDA margin. Instamart’s GOV increased 31% YoY and 17% QoQ to ₹9,230 Cr during the September quarter. NOV, which excludes discounts from GOV, rose 35% YoY and 13% QoQ to ₹6,594 Cr. However, its contribution margin deteriorated 82 basis points sequentially to -1% of GOV. Swiggy attributed the decline to targeted pricing investments to reactivate dormant users and encourage repeat purchases, changes in customer and category mix, and the initial costs of new dark stores. The renewed spending follows Instamart’s achievement of contribution breakeven in Q1 FY27, after which Swiggy stepped up investments to accelerate growth. Instamart added 1.3 Mn average monthly transacting users sequentially, taking the total to 14.8 Mn. Orders increased 29% YoY to 130.3 Mn, while net average order value rose 4% to ₹506. It also added 69 dark stores during the quarter, taking its network to 1,240 stores across 133 cities. Alongside these investments, Swiggy said Instamart’s transition to an inventory-led model will begin in mid-Q3 FY27 and take two to three quarters to complete. The update follows the earlier shareholder approval to cap foreign ownership at 49.5% on a fully diluted basis, enabling Swiggy’s transition to an Indian-owned and controlled structure. Swiggy said inventory ownership could improve Instamart’s contribution margin by around 80 basis points once fully implemented, while giving it greater control over assortment, pricing, and availability. The company also expects its working capital cycle to improve by eight to 10 days, offsetting the additional investment required to hold inventory on its balance sheet. Food Delivery Posts Records Swiggy’s food delivery business reported operating revenue of ₹2,338 Cr, up 22% YoY. Segment profit increased 39% YoY to ₹349 Cr. “Our food delivery business delivered its highest ever profits and margins while we continue to unlock new category growth through Toing, our standalone offering for affordable meals,” Swiggy cofounder, MD, and group CEO Sriharsha Majety said. Food delivery GOV increased 18% YoY and 6% QoQ to ₹10,054 Cr. The business posted record adjusted EBITDA of ₹341 Cr, compared with ₹240 Cr a year earlier and ₹292 Cr in Q1 FY27. Its adjusted EBITDA margin expanded to 3.4% of GOV from 2.8% a year earlier. Swiggy attributed the improvement to advertising-led monetisation, delivery efficiencies, and operating leverage. Bolt and its ₹99 Store together accounted for more than 25% of food delivery volumes. The company retained its full-year food delivery GOV growth guidance of 18–20%, excluding Toing, after growth exceeded 20% YoY in September. Meanwhile, its affordable meals app Toing, now present in more than 50 cities, continued to attract new and dormant users. Swiggy said two in three new Toing users were either first-time Swiggy users or users who had been inactive for a long time. The company said Toing could help lift combined food delivery marketplace growth to 25-30%. In some cities, Toing’s order volumes have already reached 20-30% of core food delivery volumes. Swiggy said repeat-user unit economics had turned positive in Toing’s earliest launch cities. However, the offering still requires improvements in monetisation and costs to make it sustainable. It expects Toing’s investment outlay to remain within a limited range in the near term, with spending primarily directed towards customer acquisition and supported by its existing technology and execution infrastructure. Swiggy expects greater clarity on the model’s scalability over the next one to two quarters. Toing remains part of the platform innovations segment, whose adjusted EBITDA loss widened to ₹162 Cr from ₹131 Cr in the preceding quarter. Meanwhile, Swiggy’s out-of-home consumption business, which includes Dineout and Scenes, reported GOV of ₹1,508 Cr, up 35% YoY. It posted adjusted EBITDA of ₹8 Cr, marking its seventh consecutive profitable quarter on this metric. Shares of Swiggy ended today’s trading session 5.01% lower at ₹211.30 apiece on the BSE.
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