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 upward trajectory, recording an 18.8% year-over-year increase in gross order value (GOV). This growth was driven by an expansion of the company's user base, with the addition of 1.2 million monthly transacting users (MTUs) during the quarter, reaching a total of 16.3 million MTUs. This marks the highest number of MTUs added in a single quarter over the past two years.

Quick Commerce Segment Accelerates

The company's quick commerce arm, Instamart, demonstrated exceptional performance with a staggering 107.6% year-over-year growth in GOV. Quarter-on-quarter, the segment grew by 21.1%, reaching ₹5,655 crore. Instamart's success was fueled by significant expansion in its dark store network and a substantial increase in average order value (AOV).

Key Financial Highlights

Operational Expansions and Innovations

Swiggy continued to innovate and expand its services during the quarter:

1. The company added 41 new dark stores, bringing its total active dark store area to 4.3 million square feet across 127 cities.
2. The average size of dark stores increased to over 4,000 square feet, allowing for expanded product assortment.
3. Swiggy introduced 'Maxxsaver', a basket-building proposition that provides additional discounts as users increase their cart value.

Challenges and Future Outlook

Despite the strong growth, Swiggy reported a consolidated Adjusted EBITDA loss of ₹813 crore for the quarter. The company attributes this to seasonal investments in delivery partner availability and the impact of annual appraisals.

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."

Looking ahead, Swiggy remains focused on growth through unlocking fresh pockets of consumption and improving wallet-share by increasing basket sizes. The company maintains its guidance of achieving a 5% Adjusted EBITDA margin (as a percentage of GOV) in the medium term for its food delivery business.

As Swiggy continues to expand and innovate in the competitive food delivery and quick commerce sectors, it faces the challenge of balancing growth with profitability. The company's performance in the coming quarters will be crucial in determining its path towards sustainable profitability while maintaining its market leadership position.

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.