Swiggy , India's leading food delivery platform, has announced plans to achieve profitability by the June 2026 quarter. The company's strategy involves doubling its business operations without significant investments in new stores, highlighting a focus on operational efficiency and leveraging existing infrastructure.

Efficient Growth Strategy

Swiggy's approach to expansion demonstrates a keen focus on maximizing returns from its current assets. By aiming to double its business without major store investments, the company is prioritizing:

1. Operational Efficiency: Utilizing existing infrastructure more effectively.
2. Cost Management: Minimizing capital expenditure on new physical locations.
3. Scalability: Expanding services through current resources and technology.

Financial Outlook

While specific financial details were not disclosed, Swiggy's profitability target for June 2026 suggests a long-term vision for sustainable growth. This timeline indicates:

• A measured approach to achieving financial stability
• Potential for gradual improvements in revenue and cost structures over the next few years

Market Implications

Swiggy's announcement comes at a time when investors are increasingly focusing on profitability in the tech and delivery sectors. This strategic move could:

• Boost investor confidence in Swiggy's long-term viability
• Set a benchmark for other players in the food delivery industry
• Potentially influence market dynamics and competition strategies

Conclusion

Swiggy's plan to achieve profitability while doubling its business without major store investments represents a significant shift in strategy for the food delivery giant. As the company works towards its 2026 goal, market observers will be keenly watching how this approach unfolds and impacts the broader food delivery ecosystem in India.

Note: As Swiggy is a private company, detailed financial information is not publicly available. The company's progress towards its stated goals will be an important area to monitor in the coming years.

Swiggy , India's leading on-demand convenience platform, has reported robust growth for the second quarter of fiscal year 2026, with its food delivery business showing improved profitability and quick commerce segment experiencing rapid expansion.

Key Financial Highlights

• Consolidated revenue from operations grew 54.4% year-over-year (YoY) to ₹5,561.00 crore
• B2C Gross Order Value (GOV) increased 47.6% YoY to ₹16,683.00 crore
• Consolidated Adjusted EBITDA loss improved to ₹695.00 crore, down from ₹813.00 crore in Q1 FY26

Food Delivery Segment Strengthens

Swiggy's core food delivery business demonstrated solid performance:

• GOV grew 18.8% YoY to ₹8,542.00 crore
• Average Monthly Transacting Users (MTU) increased 17.2% YoY to 17.20 million
• Adjusted EBITDA improved by 25.4% quarter-over-quarter (QoQ) to ₹240.00 crore
• Adjusted EBITDA margin expanded to 2.8% of GOV, up 125 basis points YoY

The company attributed this growth to new propositions like Bolt, 99-Store, Deskeats, and health-focused curations, which have helped in expanding the user base and increasing order frequency.

Quick Commerce Accelerates

Instamart, Swiggy's quick commerce offering, showed remarkable growth:

• GOV surged 107.6% YoY and 24.2% QoQ to ₹7,022.00 crore
• Average Order Value (AOV) grew approximately 40% YoY to ₹697.00
• Contribution margin improved by 202 basis points QoQ to -2.6%
• Adjusted EBITDA margin improved by 375 basis points QoQ to -12.1%

The rapid expansion in quick commerce was driven by increased dark store network efficiency, with 1,102 stores now operational across 128 cities.

Strategic Initiatives and Future Outlook

Swiggy has undertaken several strategic initiatives to drive growth:

1. Launched 'Toing', a new app catering to budget-conscious users in Pune
2. Expanded 'Deskeats' to 7,000+ tech parks across 30 cities
3. Introduced health-focused categories on the platform
4. Planned divestment of its stake in Rapido for ₹2,399.00 crore, subject to regulatory approvals

The company's board is set to consider a fundraise of up to ₹10,000.00 crore through the Qualified Institutional Placement (QIP) route on November 7, 2025.

Management Commentary

Sriharsha Majety, MD & Group CEO of Swiggy, commented on the results: "Swiggy's Food delivery business delivered another quarter of robust growth and improved profitability, with the double-digit YoY order growth at the highest in 2 years. Instamart made giant strides in catering to all purchase-missions through Maxxsaver (grocery) and Quick India movement (non-grocery), driving up AOV 40% YoY."

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

Note: All financial figures are in Indian Rupees (₹).