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.

Swiggy , India's leading on-demand convenience platform, reported a significant 54% year-over-year increase in revenue, despite a near doubling of net losses. The company's financial results highlight both its robust growth and the challenges it faces in achieving profitability.

Revenue Growth and Expanded Losses

Swiggy's revenue from operations rose 54% to Rs 4,961.00 crore. However, the company's net loss widened to Rs 1,197.00 crore from Rs 611.00 crore year-over-year, nearly doubling from the previous fiscal year. This increase in losses reflects the company's continued investments in growth initiatives and market expansion.

Segment Performance

Food Delivery

Swiggy's core Food Delivery business faced some challenges. Food delivery contribution margins dropped to 7.3% of Gross Order Value, down 43 basis points quarter-over-quarter, primarily due to seasonal factors including higher delivery costs from lower delivery partner availability and monsoons. Adjusted EBITDA margins declined to 2.4%, down 52 basis points quarter-over-quarter.

Quick Commerce

Swiggy's Quick Commerce segment, Instamart, showed remarkable growth. The segment posted losses of Rs 896.00 crore but demonstrated strong performance with 108% year-over-year GOV growth to Rs 5,655.00 crore. Instamart added 41 new dark stores, bringing the total to 1,062 across 127 cities. Swiggy maintains guidance of reaching contribution margin break-even in Quick Commerce between Q3FY26 and Q1FY27.

Strategic Initiatives and Developments

Swiggy continues to innovate and expand its service offerings. The company has introduced new initiatives such as:

1. 99-Store: Launched affordability initiatives including flat-priced meals at Rs 99.00 across 175+ cities.

2. Rapido Stake Re-evaluation: Swiggy is actively re-evaluating its 12% minority stake in Rapido due to potential conflict of interest after Rapido announced plans to enter the food delivery business.

Outlook

While Swiggy's rapid revenue growth is impressive, the widening losses highlight the challenges in the highly competitive food delivery and quick commerce sectors. The company remains focused on expanding its user base, improving unit economics, and driving towards profitability in its Quick Commerce segment.

As Swiggy continues to balance growth with profitability, investors will be watching closely to see how the company navigates the competitive landscape, especially with the potential changes in its relationship with Rapido, and progresses towards its financial goals in the coming quarters.