Food delivery shines with profitability and scale, but ballooning Instamart losses and platform bets keep Swiggy’s bottom line in the red.
Swiggy’s Q3 FY26 consolidated net loss surged 33% YoY to INR 1,065 Cr, as the company struggled to contain quick commerce losses despite strong gains in food delivery and B2B services.
Though the loss narrowed 3% QoQ from INR 1,092 Cr, the company’s claim in the previous quarter that losses had “bottomed out” now appears premature.
At the same time, operating revenue hit a record INR 6,148 Cr, marking a 54% YoY and 11% QoQ growth, backed by strong momentum in core food delivery and supply chain verticals.
Profitability Still Elusive Amid Rising Costs
Swiggy’s total expenses jumped 49% YoY to INR 7,298 Cr, driven by continued investments in quick commerce and platform innovation. Including other income of INR 96 Cr, total income stood at INR 6,244 Cr.
The company also incurred an exceptional loss of INR 10 Cr during the quarter due to the statutory impact of India’s new labour code.
Despite the loss, adjusted EBITDA improved 45% YoY to INR 712 Cr, reflecting gradual operating leverage—though much of this was overshadowed by Instamart’s performance.
Segment Snapshot: Food Delivery Profitable, Instamart Bleeds
Food Delivery
- Revenue: INR 2,041 Cr (+25% YoY)
- Profit: INR 282 Cr (+46% YoY)
- Monthly Transacting Users: 2.4 Cr (+36% YoY)
- Gross Order Value: INR 18,122 Cr (+49% YoY)
Food delivery remains Swiggy’s profit anchor, fueled by rising premiumisation, average order value (AOV), and adoption of new formats like Bolt (10-min delivery) and 99store (value meals). These now account for over 20% of delivery volumes.
“Lower AOV but shorter last-mile distances improve unit economics,” said the company, signalling smart optimisation amid intense competition.
Quick Commerce – Instamart
- Revenue: INR 1,016 Cr (+76% YoY)
- Orders: 10.6 Cr (+45% YoY)
- AOV: INR 746 (+40% YoY)
- Loss: INR 791 Cr (+50% YoY)
- Adjusted EBITDA Loss: INR 908 Cr (+57% YoY)
Instamart’s aggressive expansion—adding 34 dark stores to reach 1,136—is burning cash faster than ever, contributing the largest share of Swiggy’s Q3 losses.
Yet, CEO Amitesh Jha ruled out price wars:
“We will not chase growth through discounts. The goal is long-term customer stickiness, not short-term spikes.”
Out-of-Home Consumption (DineOut & SteppinOut)
- Revenue: INR 88 Cr (+56% YoY)
- Profit: INR 8 Cr (vs INR 8 Cr loss YoY)
Platform Innovations (Swiggy Sports, SNACC)
- Revenue: INR 9 Cr (-59% YoY)
- Loss: INR 40 Cr (4X YoY)
Supply Chain & Distribution (B2B)
- Revenue: INR 2,981 Cr (+76% YoY)
- Loss: INR 8 Cr (-87% YoY)
B2B operations remain Swiggy’s operational backbone, with strong revenue growth and near-break-even economics.
Can Growth Sustain Without Deeper Losses?
While food delivery shows strong structural growth and unit economics, Instamart continues to be Swiggy’s cash sink. The company insists that quick commerce scale is being built responsibly—but the market is watching Blinkit and Zepto push harder on aggressive growth.
Despite headwinds, Swiggy has maintained its guidance of 18–20% YoY GOV growth in food delivery and aims to retain profitability in the segment.
The path to profitability now hinges on curbing quick commerce burn, consolidating gains in B2B logistics, and winding down loss-making bets in experimental verticals.
But with INR 1,065 Cr quarterly loss, can Swiggy afford to keep playing the long game?
TL;DR
Swiggy’s Q3 FY26 loss rose 33% YoY to INR 1,065 Cr, driven by mounting Instamart losses. Food delivery posted INR 282 Cr profit and strong order growth. Quick commerce revenue surged 76%, but losses ballooned. The company plans to focus on structural growth, not discount wars.
AI summary
- Net loss at INR 1,065 Cr, up 33% YoY; trimmed 3% QoQ
- Operating revenue crossed INR 6,000 Cr (+54% YoY)
- Food delivery profitable with INR 282 Cr profit
- Instamart loss surged to INR 791 Cr; AOV and orders up
- Swiggy avoids discounting in quick commerce, focuses on sustainable growth
