Swiggy reported a robust first-quarter performance for FY27, with strong gains in revenue and a narrower loss, underscoring improving operating efficiency across food delivery and its quick-commerce arm, Instamart. The company also detailed progress on profitability metrics, network expansion, and product initiatives as competition intensifies in India’s online food services market.
Financial performance in Q1 FY27
Revenue from operations rose 37.31% year-on-year to Rs 6,812 crore in the April–June quarter, compared with Rs 4,961 crore a year earlier. Including other income, total income reached Rs 7,023 crore, up nearly 39%.
Net loss narrowed by about 34% to Rs 791 crore from Rs 1,197 crore in Q1 FY26, indicating tighter cost control despite ongoing investments. EBITDA loss reduced to Rs 650 crore, with the EBITDA margin improving to -9.54%. Quarterly expenses stood at Rs 7,813 crore, led by product procurement, delivery, and advertising and promotions, while employee costs were slightly lower year-on-year.
Following the results, the company’s shares closed higher, valuing Swiggy at over Rs 81,000 crore. The board has sought shareholder approval to raise the foreign shareholding limit to 49.5%.
Instamart edges towards profitability; food delivery scales steadily
Instamart remained a key growth driver. Revenue from the quick-commerce platform rose 53% year-on-year to Rs 1,232 crore. Gross Order Value (GOV) increased nearly 40% to Rs 7,907 crore. Instamart achieved contribution margin break-even in May 2026; by quarter-end, contribution margin improved to around -0.2%. Over 45% of dark stores and five of the seven largest cities turned contribution-margin positive.
To strengthen unit economics, Swiggy rationalised discounts and free delivery on small baskets, discontinuing service to over four million unprofitable users. Management estimates Instamart would require 250–300 million quarterly orders to reach adjusted EBITDA break-even.
The network continued to expand with 28 new dark stores added during the quarter, taking the total to 1,171 across 131 cities and covering nearly 4.9 million square feet. Around 75 additional stores are planned for the next quarter. Swiggy also launched the “Switch to Better” campaign in partnership with over 400 brands across categories to promote premium assortments.
In food delivery, revenue rose 23% to Rs 2,208 crore, while GOV reached Rs 9,490 crore. The segment reported a profit of Rs 299 crore with an adjusted EBITDA margin of 3.1%. Monthly transacting users grew nearly 18% year-on-year to 1.92 crore. Growth at the start of the quarter was partly tempered by LPG supply disruptions affecting some restaurants.
The company scaled its budget-focused Toing to 50 cities and expanded Bolt to over 700 cities. Orders through the Eat Right initiative now comprise around 15% of food delivery volumes. Swiggy permanently shut its Snacc category citing limited long-term potential.
Beyond these verticals, Scootsy remained the largest revenue contributor at Rs 3,195 crore, posting only a marginal loss, while Dineout delivered strong growth and stayed profitable.
Competitive landscape and platform fee dynamics
Swiggy’s update comes amid an increasingly competitive delivery ecosystem. Platform fees paid by customers have risen to Rs 17.58 per order including GST, a revenue lever that industry observers expect could see further adjustments.
Competition is set to intensify as Flipkart prepares a Bengaluru launch using the ONDC network alongside its existing customer base and Flipkart Minutes delivery capability—an approach likely to appeal to price-sensitive users and restaurants seeking lower commissions.
Swiggy said it remains confident of its position, citing its multi-vertical footprint and extensive network. The company also filed a self-declaration with the Central Consumer Protection Authority, confirming compliance with India’s Dark Patterns Guidelines, 2023, after reviewing its user interface for misleading or unfair design practices.
With stronger unit economics, continued Instamart traction, and steady growth in food delivery, Swiggy is prioritising profitability while expanding its services across more cities.
