Swiggy Ltd reported its Q2 FY27 results for the quarter ended September 30, 2026, delivering strong revenue growth across its food delivery and quick-commerce businesses. The company continued to expand its customer base and order volumes, although significant investment in Instamart kept overall profitability under pressure.

Consolidated revenue from operations increased 36.1% year-on-year to ₹7,571 crore, compared with ₹5,561 crore in Q2 FY26. The growth reflects rising demand across Swiggy’s consumer-facing businesses and continued expansion in online food delivery and quick commerce.

Swiggy reported a consolidated net loss of ₹922 crore, compared with a loss of ₹1,092 crore in the corresponding quarter last year. This represents a year-on-year reduction in losses of approximately 15.6%. However, the loss increased from ₹791 crore in Q1 FY27, highlighting the near-term cost of expansion and competitive investment.

The company’s adjusted EBITDA loss stood at ₹760 crore, compared with ₹695 crore in Q2 FY26. This indicates that revenue growth has not yet translated into a reduction in the group’s adjusted operating loss. Adjusted EBITDA is a non-GAAP measure and should be considered alongside reported financial results.

Swiggy’s consumer-facing businesses recorded a combined gross order value (GOV) of ₹20,793 crore, up 24.6% year-on-year. Average monthly transacting users across the platform increased 21% to 27.8 million, showing continued customer engagement.

The food-delivery business remained an important source of operating improvement. Its GOV rose 17.7% year-on-year to ₹10,054 crore. Monthly transacting users in the segment increased to 19.8 million from 17.2 million a year earlier.

Food delivery adjusted EBITDA reached ₹341 crore, up from ₹240 crore in Q2 FY26. Its adjusted EBITDA margin improved to 3.4% of GOV from 2.8%, supported by better delivery efficiency, advertising revenue and order density. This segment’s improving profitability is an important counterbalance to the investment-heavy quick-commerce business.

Management retained its full-year FY27 food-delivery GOV growth guidance of 18–20%, excluding the Toing app. The company also reported that food-delivery GOV growth exceeded 20% year-on-year in September, indicating stronger momentum toward the end of the quarter.

Swiggy is also expanding Toing, its affordable food-ordering platform, which was available in more than 50 cities according to the company’s quarterly update. Management said the platform is attracting new customers as well as users who had been inactive for an extended period. Its longer-term contribution will depend on customer retention, order frequency and sustainable unit economics.

Instamart, Swiggy’s quick-commerce business, recorded GOV of ₹9,230 crore, up 31.4% year-on-year. Net order value, which excludes discounts, increased 34.8% to ₹6,594 crore. Sequential growth in net order value accelerated compared with the previous quarter.

Instamart’s monthly transacting users reached 14.8 million, up 23% year-on-year. The business expanded its network by adding 69 net dark stores during the quarter, taking the total to 1,240 stores across 133 cities. Total dark-store area exceeded 5.2 million square feet.

However, the rapid expansion of Instamart continued to weigh on profitability. The segment reported an adjusted EBITDA loss of ₹895 crore, compared with ₹849 crore in Q2 FY26 and ₹778 crore in Q1 FY27. The higher loss reflects investment in store expansion, customer acquisition and service capabilities.

There were also signs of improvement in Instamart’s unit economics. Its adjusted EBITDA margin improved to negative 9.7% of GOV from negative 12.1% a year earlier, while contribution margin improved to negative 1% from negative 2.6%. These measures suggest better economics relative to order value, even though the segment remains loss-making.

Management expects another quarter of double-digit sequential growth in Instamart net order value during Q3 FY27 and sees scope for further operating-margin improvement. Investors will need to watch whether the business can achieve these gains without continued sharp increases in spending.

Swiggy’s out-of-home consumption business, which includes Dineout, reported GOV growth of 35% year-on-year to ₹1,508 crore. The business remained adjusted EBITDA-positive for the seventh consecutive quarter, providing another source of operational diversification.

The company also announced an agreement to sell its Lynks Logistics business for ₹500 crore. The transaction, together with a separate investment of ₹75 crore, is expected to result in Swiggy holding approximately 3.2% of Udaan. The disposal changes the company’s portfolio and should be assessed in the context of the transaction’s completion and financial impact.

Swiggy’s consolidated cash balance stood at ₹13,662 crore at the end of September 2026, down from ₹14,367 crore at the end of June. Cash resources remain an important factor because the company is investing in quick-commerce infrastructure while working toward sustainable profitability.

For investors, the central question is whether Swiggy can sustain food-delivery growth and profitability while reducing Instamart’s losses. The food-delivery business showed stronger margins, while Instamart delivered rapid GOV growth but remained the main pressure point on group profitability.

The next few quarters will be important for monitoring order growth, customer retention, dark-store productivity, contribution margins and cash consumption. Faster growth alone may not be sufficient if expansion costs continue to rise faster than the company’s ability to improve operating efficiency.

Overall, Swiggy’s Q2 FY27 performance presents a mixed picture: revenue and platform engagement grew strongly, food delivery improved its profitability, and the quick-commerce business expanded rapidly. However, the sequential increase in the consolidated loss and the higher Instamart adjusted EBITDA loss underline the execution risks in reaching sustainable profitability.

This article is for educational and informational purposes only. It is not investment advice or a recommendation to buy or sell any security. Investors should review the company’s official filings, complete financial statements and earnings-call disclosures before making investment decisions.

Swiggy Ltd — Q2 FY27 Concall Highlights

• Revenue from Operations: ₹7,571 crore, up 36.1% YoY
• Consolidated Net Loss: ₹922 crore vs ₹1,092 crore in Q2 FY26
• Sequential Performance: Net loss widened from ₹791 crore in Q1 FY27
• Adjusted EBITDA Loss: ₹760 crore vs ₹695 crore a year ago
• Combined Consumer GOV: ₹20,793 crore, up 24.6% YoY
• Monthly Transacting Users: 27.8 million, up 21% YoY

Food Delivery:
• GOV: ₹10,054 crore, up 17.7% YoY
• Adjusted EBITDA: ₹341 crore vs ₹240 crore
• Adjusted EBITDA Margin: 3.4% of GOV vs 2.8%
• Monthly Transacting Users: 19.8 million
• FY27 GOV Growth Guidance: 18–20%, excluding Toing

Instamart:
• GOV: ₹9,230 crore, up 31.4% YoY
• Net Order Value: ₹6,594 crore, up 34.8% YoY
• Adjusted EBITDA Loss: ₹895 crore vs ₹849 crore a year ago
• Adjusted EBITDA Margin: -9.7% of GOV vs -12.1%
• Dark Stores: 1,240 across 133 cities
• Monthly Transacting Users: 14.8 million
• Management expects another quarter of double-digit sequential NOV growth in Q3 FY27

Out-of-Home Consumption:
• GOV: ₹1,508 crore, up 35% YoY
• Adjusted EBITDA-positive for the seventh consecutive quarter

Other Important Updates:
• Consolidated cash balance: ₹13,662 crore at September-end
• Agreed sale of Lynks Logistics for ₹500 crore
• Separate ₹75 crore investment linked to the transaction is expected to result in an approximately 3.2% stake in Udaan

Key Positives:
• Strong revenue growth and rising customer engagement
• Food delivery profitability improved
• Instamart’s margin metrics improved year-on-year

Key Risks:
• Consolidated loss increased sequentially
• Instamart’s adjusted EBITDA loss widened both year-on-year and quarter-on-quarter
• Continued investment and competition may delay group-level profitability

Investor Focus:
Watch food-delivery margins, Instamart unit economics, dark-store productivity, order growth and cash consumption in upcoming quarters.

Disclaimer: For educational purposes only. Not investment advice.