In the April–June quarter of FY 2025–26 (Q1 FY26), Swiggy reported a net loss of ₹1,197 crore—almost double the ₹611 crore it lost in the same period last year. This is a major setback, especially because its revenue jumped by 54% to ₹4,961 crore.
Fast Growth in Orders and Users
Swiggy’s gross order value rose by about 45% year-on-year to ₹14,797 crore. The number of monthly active users also grew 35% compared to last year, reaching 21.6 million. This clearly shows that more and more people are using Swiggy to order food and groceries.
Food Delivery Rising, But Margins Shrinking
Swiggy’s food delivery business saw a 19% rise in gross order value to ₹8,086 crore. The company added 1.2 million new active users—the highest growth in two years. However, its profit margins dropped, meaning the business is growing but not earning more money from each order.
Instamart: Quick Commerce Growing Fast—but Still Costly
Swiggy’s Instamart (quick commerce) business showed huge growth. Its order value increased by 108% year-on-year. The average order value rose to ₹612, thanks to larger basket sizes and more non-grocery items. Swiggy added 41 new dark stores, taking the total space to 4.3 million sq ft. But still, this part of the business is losing money with an EBITDA margin of –15.8%.
Company Strategy and Rapido Exit
Swiggy’s CEO, Sriharsha Majety, said they will now focus on controlled spending to make Instamart profitable. Also, Swiggy is planning to sell its 12% stake in Rapido because Rapido is now entering the food delivery space — which makes them a direct competitor.
Competition from Zomato
Swiggy’s main rival, Zomato, reported a 70% jump in revenue to ₹7,167 crore in Q1 FY26. Even though Zomato’s profits dropped 90% to ₹25 crore, the company still stayed in profit. Zomato’s quick commerce arm, Blinkit, outperformed food delivery, giving it an edge over Swiggy.
Market Reactions: Mixed but Hopeful
Swiggy’s stock price dropped below its listing value after the Q1 loss news. However, investors later showed confidence due to strong demand in the sector. Broking firm Jefferies even upgraded Swiggy’s rating to “Buy” with a target price of ₹500, calling it a “high-risk, high-reward” investment.
Swiggy is growing quickly, with more users and bigger orders. But high costs, especially in quick commerce, are affecting profits. Meanwhile, Zomato is expanding too—and managing to stay profitable. It’s now a race between both giants to balance growth with long-term profit in a very competitive market.
, Swiggy reported a net loss of ₹1,197 crore — almost double the ₹611 crore.){kind=link}