Swiggy reported a consolidated net loss of Rs 791 crore for the first quarter of FY27, wider than the Bloomberg estimate of Rs 717 crore, as a sharp increase in spending on its incubated new businesses absorbed almost the entire improvement delivered by quick commerce arm Instamart. Consolidated adjusted revenue stood at Rs 7,112 crore, ahead of the estimated Rs 6,754 crore.
Consolidated adjusted Ebitda loss came in at Rs 651 crore, against an estimated loss of Rs 515 crore, and was virtually unchanged from the Rs 652 crore loss in the previous quarter. Instamart narrowed its adjusted Ebitda loss by Rs 80 crore sequentially, but the Platform Innovations segment saw its loss more than double to Rs 131 crore from Rs 58 crore, while food delivery gave up Rs 5 crore. Platform Innovations is the company’s incubator for newer bets and houses the standalone budget food delivery app Toing, along with Swiggy Minis, Swiggy Sports, Crew and Snacc, the micro-kitchen brand that the company has now decided to shut.
Instamart Reaches Margin Breakeven
The company said Instamart hit its contribution margin break-even target in May 2026, meeting guidance issued five quarters ago, though contribution for the full quarter remained marginally negative at -0.2% of gross order value (GOV). Instamart’s adjusted Ebitda loss narrowed to Rs 778 crore from Rs 858 crore. Its GOV grew 39.8% year-on-year to Rs 7,907 crore but was flat sequentially against Rs 7,881 crore in the March quarter. The unit added a net 28 dark stores to reach 1,171 across 131 cities and guided for about 75 additions in Q2FY27. Orders per dark store per day slipped to 1,089 from 1,093.
Platform-level growth decelerated sharply. B2C GOV grew 27.9% year-on-year to Rs 18,926 crore, against 40.7% in the previous quarter and 49% in Q3FY26. Platform frequency, or completed orders per user in a month, fell to 3.87 from 4.01, marking a sixth consecutive quarterly decline, even as average monthly transacting users rose 27.4% to 27.5 million. The company said it had weaned away over 4 million unprofitable users on Instamart over the last three quarters.
Food delivery GOV rose 17.4% year-on-year to Rs 9,490 crore, below the 18-20% band the company guides for, which it attributed to restaurant-driven cancellations early in the quarter caused by LPG supply disruptions. Adjusted Ebitda slipped to `292 crore from Rs 297 crore, the first sequential decline in five quarters, with the margin at 3.1% of GOV. Monthly transacting users for food delivery grew 17.8% to 19.2 million.
The out-of-home consumption business saw GOV grow 44.8% year-on-year and 22.8% sequentially to Rs 1,529 crore, with an adjusted Ebitda of Rs 14 crore at a margin of 0.9% of GOV. Dineout had 59,000 average monthly active restaurant partners during the quarter.
Toing expanded to 50 cities during the quarter. In the shareholders’ letter, the company said the initial investment in the app “is largely on new user acquisition which is discretionary in nature and can be quickly scaled or cut-back depending on the progress.” Swiggy does not break out the individual businesses within the segment. On Snacc, it said the decision to shut it down followed its expectation of a low potential market size for the category against the incremental complexity of running the business.
The consolidated cash balance stood at Rs 14,367 crore at the end of June, down from Rs 15,053 crore three months earlier, with quarterly cash burn widening to Rs 695 crore from Rs 606 crore.
Separately, Amitesh Kumar Jha resigned as chief executive officer of Instamart with effect from July 28, two days before the results. Swiggy said its domestic ownership crossed 50% for the first time on July 1 and that its board, on July 23, approved capping foreign shareholding at 49.5% as part of its effort to qualify as an Indian Owned and Controlled Company. Both the cap and the related amendments to the company’s Articles of Association require shareholder approval, which Swiggy will seek at its annual general meeting on August 18. The status would allow Instamart to directly own and sell inventory alongside its marketplace business, which the company said has the potential to add about 80 basis points to its contribution margin over a transition period of two to four quarters.
Group CEO Sriharsha Majety said the company delivered “contribution breakeven exactly as we guided a year ago”, calling it an inflection point, and said further Ebitda improvement would come from scale-led efficiencies.