Swiggy , India's leading on-demand convenience platform, has reported robust growth across its key business segments for the first quarter of fiscal year 2026, ending June 30, 2025. The company's financial results showcase significant expansion in its food delivery and quick commerce operations, along with improvements in user engagement and platform metrics.

Food Delivery Maintains Steady Growth

Swiggy's core food delivery business continued its strong performance, recording an 18.8% year-over-year increase in Gross Order Value (GOV) to ₹8,086.00 crore. This growth was driven by an expansion of the company's user base, with Monthly Transacting Users (MTUs) rising to 16.3 million, marking an addition of 1.2 million users compared to the previous quarter. This represents the highest number of MTUs added in a single quarter over the past two years.

Despite the growth, the segment's Adjusted EBITDA margin slightly decreased to 2.4% of GOV, down from 2.9% in Q4 FY25. This decline was attributed to seasonal investments in delivery partner availability during the monsoon season and the impact of annual appraisals.

Quick Commerce Witnesses Explosive Growth

Instamart, Swiggy's quick commerce offering, demonstrated exceptional performance with a 107.6% year-over-year increase in GOV, reaching ₹5,655.00 crore. The segment added 1.2 million MTUs, representing a 12% quarter-over-quarter growth. Notably, the Average Order Value (AOV) grew by 25.6% year-over-year to ₹612.00, surpassing the company's guidance.

The quick commerce segment expanded its network to 127 cities, adding 41 dark stores during the quarter. This expansion increased the active dark store area to 4.3 million square feet, a significant 158.7% year-over-year growth. The company's focus on improving wallet share and increasing basket size has started showing results, with contribution margins improving by 97 basis points to -4.6% in Q1 FY26.

Platform-wide Improvements

Swiggy's overall platform metrics showed positive trends:

Strategic Initiatives and Future Outlook

Sriharsha Majety, MD & Group CEO of Swiggy, commented on the results: "Swiggy's Food delivery business continues to deliver robust growth, while innovating to create new customer propositions which can open up the market further. Instamart witnessed a massive leap in AOV led by assortment expansion and Maxxsaver adoption."

The company has introduced several new initiatives to drive growth and improve user experience:

1. Launch of 'Bolt' for 10-minute delivery of select food items.
2. Introduction of '99-Store' offering single-serve, fast-prep meals priced at ₹99 with free delivery.
3. Expansion of Instamart's assortment, with many metro users now having access to over 30,000 SKUs.
4. Implementation of 'Maxxsaver', a basket-building proposition providing additional discounts for larger orders.

Looking ahead, Swiggy remains focused on sustainable growth and improving profitability across its segments. The company maintains its guidance of achieving a 5% Adjusted EBITDA margin for its food delivery business in the medium term and expects to reach contribution margin break-even for its quick commerce segment between Q3 FY26 to Q1 FY27.

As Swiggy continues to innovate and expand its services, the company is well-positioned to capitalize on the growing demand for convenient, on-demand delivery services in India's rapidly evolving digital economy.

Swiggy , India's leading on-demand convenience platform, has reported robust growth across its key business segments for the first quarter of fiscal year 2026. The company's financial results, released on July 31, 2025, showcase significant expansion in both its food delivery and quick commerce operations.

Food Delivery Maintains Steady Growth

Swiggy's core food delivery business continued its strong performance, with Gross Order Value (GOV) rising 18.8% year-over-year to ₹8,086.00 crore. The segment added 1.2 million Monthly Transacting Users (MTUs) compared to the previous quarter, reaching 16.3 million MTUs. This marks the highest number of MTUs added in a single quarter over the last two years.

However, the Adjusted EBITDA for food delivery declined by 9.6% quarter-on-quarter to ₹192.00 crore, with the Adjusted EBITDA margin at 2.4% of GOV. The company attributed this dip to seasonal investments in delivery partner availability during the monsoon season and the impact of annual appraisals.

Quick Commerce Sees Explosive Growth

Instamart, Swiggy's quick commerce offering, witnessed explosive growth with GOV surging 107.6% year-over-year and 21.1% quarter-on-quarter to ₹5,655.00 crore. The segment added 1.2 million MTUs, representing a 12% increase from the previous quarter.

Notably, the Average Order Value (AOV) for quick commerce jumped by 25.6% year-over-year to ₹612.00, driven by expanded selection and larger basket sizes. The contribution margin for this segment improved by 97 basis points to -4.6% in Q1 FY26.

Expansion and Innovation

Swiggy continued to expand its quick commerce network, adding 41 dark stores during the quarter. The company now operates 1,062 dark stores covering 4.3 million square feet across 127 cities, representing a 158.7% year-over-year increase in active dark store area.

The company also highlighted the success of its new initiatives, including:

1. Bolt: Swiggy's 10-minute food delivery service, which now contributes over 10% of overall food delivery volumes.
2. Maxxsaver: A basket-building proposition that provides additional discounts as customers increase their order size, utilized by over 28% of MTUs.
3. 99-Store: Recently launched in early July, offering quick dishes at a flat price of ₹99 across 175+ cities.

Financial Overview

Despite strong top-line growth, Swiggy reported a consolidated loss of ₹1,197.00 crore for the quarter. The company's revenue from operations increased to ₹4,961.00 crore, up from ₹3,222.00 crore in the same quarter last year.

Sriharsha Majety, MD & Group CEO of Swiggy, commented on the results: "Swiggy's Food delivery business continues to deliver robust growth, while innovating to create new customer propositions which can open up the market further. Instamart witnessed a massive leap in AOV led by assortment expansion and Maxxsaver adoption."

Future Outlook

Swiggy maintains its guidance of achieving a 5% Adjusted EBITDA margin for food delivery in the medium term. For quick commerce, the company expects to reach contribution margin break-even between Q3 FY26 and Q1 FY27.

The company also noted that it is re-evaluating its approximately 12% stake in Rapido, which has appreciated significantly, due to potential future conflicts of interest as Rapido enters the food delivery space.

As Swiggy continues to innovate and expand its services, the company remains focused on balancing growth with profitability across its diverse business segments.