Swiggy on Thursday reported a narrower consolidated net loss for the January-March quarter, beating Bloomberg estimates across consolidated revenue, adjusted Ebitda and net loss, as its food delivery business posted the best-ever profitability margins even as quick commerce growth decelerated sharply with the company prioritising unit economics over volume.
The company posted a net loss of Rs 800 crore, narrower than the Bloomberg consensus estimate of Rs 909 crore and down 26% from Rs 1,081 crore a year earlier, driven by stronger operating leverage in food delivery and reduced cash burn in Instamart, though the quick commerce arm continued to remain the primary drag on consolidated profitability.
Consolidated revenue from operations rose 44.7% year-on-year to Rs 6,383 crore, exceeding Bloomberg’s estimate of Rs 6,262 crore, supported by sustained momentum across food delivery and quick commerce. Consolidated adjusted Ebitda loss narrowed to Rs 652 crore from Rs 732 crore a year ago, better than the Street’s estimate of Rs 687 crore, reflecting improved operating leverage across food delivery and the out-of-home segment even as Instamart losses persisted.
Food Delivery Performance
Food delivery recorded its fastest growth in 15 quarters, with gross order value rising 22.6% year-on-year to Rs 9,005 crore, ahead of the company’s guided range of 18-20%. The segment posted an adjusted Ebitda of Rs 297 crore, up 39.8% year-on-year, with margins hitting a lifetime high of 3.3% of GOV, expanding 41 basis points year-on-year and 26 basis points sequentially.
Monthly transacting users grew 21% year-on-year to 18.3 million, driven by newer propositions such as Bolt, 99-Store, and Eat Right, which together with other speed and affordability offerings now account for roughly a fourth of total platform volumes. The company also shut down Snacc, its micro-kitchen experiment, during the quarter after concluding the category was too small for the complexity involved.
Contribution margin improved to 7.8%, up 20 basis points sequentially, supported by higher fleet utilisation and ad-led revenue growth. Management reiterated its medium-term food delivery guidance of 18-20% GOV growth and a 5% adjusted Ebitda margin target.
Instamart Strategy
Quick commerce arm Instamart saw GOV growth decelerate to 68.8% year-on-year at Rs 7,881 crore, down from 103.2% in Q3FY26, as the company pulled back from unprofitable low-value orders and rolled back a no-delivery-fee campaign in January. Average order value grew 33% year-on-year to Rs 700 but declined sequentially from Rs 746 in Q3FY26, as the company rationalised discounting — the net order value to GOV ratio improved to 72% from 69% in Q3.
The segment reported an adjusted Ebitda loss of Rs 858 crore, compared with Rs 840 crore a year earlier, though losses improved Rs 50 crore sequentially. Contribution margin improved sharply to -1.8% from -5.6% a year ago, with March alone reaching -1.1%. Management guided for contribution margin breakeven in Q1FY27 and outlined a medium-term target of over Rs 1 lakh crore in net order value with 4-5% Ebitda margins.
The out-of-home segment, comprising Dineout and events platform Scenes, continued its profitability trajectory with adjusted Ebitda of Rs 10 crore on GOV of Rs 1,245 crore, up 43% year-on-year. Adjusted Ebitda margins expanded to 0.8% during the quarter through growing brand advertising revenue. Average monthly active restaurant partners grew 36% year-on-year to over 53,000.
Swiggy ended the quarter with a consolidated cash balance of Rs 15,053 crore, up from Rs 13,512 crore in Q3, as reduced cash burn and treasury income offset continued investments in quick commerce infrastructure.