Swiggy posted its Q1 results recently, reflecting a significant surge in sales, but the dipping losses may raise concerns.
India's top food and quick commerce delivery platform, Swiggy, reported its Q1 financial performance for the period ending June 30, 2025, witnessing robust top-line growth but increased losses, demonstrating sustained investments and scale challenges.
Swiggy's total revenue grew 54% year-on-year to ₹4,961 crore in Q1 FY26 from ₹3,222 crore during the same quarter last year. Quarter-on-quarter, revenue grew by around 12.5% from ₹4,410 crore during the earlier quarter. The company said it was due to growth in both its food delivery core business and its quick commerce business, Instamart.
The food delivery vertical registered revenue of close to ₹1,799 crore, registering a growth of close to 20% year on year, and Instamart's quick commerce revenue more than doubled to ₹806 crore, reflecting Swiggy's strong push into grocery and essentials delivery. Supply chain and distribution, another core business, registered revenue at ₹2,259 crore but continued to be in the red.
Even with robust top-line growth, the net loss of Swiggy increased massively to ₹1,197 crore in Q1, nearly doubling from ₹611 crore in Q1 FY25 and widening from ₹1,081 crore in Q4 FY25. Profit Before Tax for the company was a negative ₹1,196 crore.
The gross widening losses were largely due to increased operating costs, which grew 60% year-on-year to ₹6,244 crore, driven by rising delivery costs, advertising and promotions (₹1,036 crore), employee benefits, and logistics costs required to support fast growth across various verticals.
Swiggy's adjusted EBITDA loss grew to ₹813 crore, from a loss of ₹465 crore a year earlier and ₹732 crore in the last quarter, reflecting sustained pressure on profitability owing to aggressive bets.
Swiggy's online platform continues to see increasing user base. The number of monthly transacting users (MTUs) grew 35.2% year-on-year to 21.6 million in Q1, rising 9% on a quarterly basis. This is aligned with the company's approach of increasing penetration in its existing markets as well as increasing offerings.
Swiggy CEO Sriharsha Majety described the losses as a part of a strategic investment towards building a large-scale convenience ecosystem, with profitable food delivery complemented by a high-growth but loss-making quick commerce segment. The firm continues to be committed to long-term sustainable profitability despite margin pressures in the short term.
Swiggy's Q1 FY26 performance is a typical growth vs profitability conundrum. Revenues and user engagement are growing well, but operating losses have grown sharply owing to scale-based expenses and investments towards innovation and market expansion. Swiggy's test is handling cost efficiencies and enhancing unit economics, particularly in its quick commerce business, as it works to maintain the growth and transition toward profitability in a highly competitive environment.
Investors and analysts will be keen to see Swiggy's capacity to balance margin discipline and expansion during the next few quarters and how it is able to leverage India's increasing demand for food and fast-commerce delivery services.
