Swiggy reported a strong increase in Q3 FY26 revenue, driven by rapid expansion in logistics and quick commerce, even as losses widened due to higher operating costs and aggressive investment. The results underline the company’s growing scale across food delivery, logistics and instant grocery fulfilment, while highlighting the ongoing challenge of achieving sustained profitability.
Revenue growth driven by logistics, Instamart and core delivery
Operating revenue rose 54% year-on-year to ₹6,148 crore in Q3 FY26, up from ₹3,993 crore in the same quarter a year earlier. Growth was broad-based, led by Scootsy Logistics and the quick commerce arm, alongside steady gains in the core food delivery business.
Scootsy Logistics emerged as the largest contributor, accounting for nearly half of operating revenue. Revenue from this segment increased more than 70% year-on-year, reflecting higher volumes from food deliveries and rapid scaling of B2B and B2C logistics services.
The food delivery business contributed approximately one-third of total collections, with revenue up about 25% year-on-year. The improvement was supported by higher order volumes, increased average order values and deeper penetration in existing cities.
Instamart, Swiggy’s quick commerce arm, continued its strong momentum: segmental revenue rose nearly 76% and crossed the ₹1,000 crore mark. The company has been expanding its dark-store footprint in metros and large tier-1 cities to meet growing consumer demand for ultra-fast grocery and daily essentials delivery.
Including other verticals such as dining solutions, Genie and Swiggy Mini, total income for the quarter stood at around ₹6,244 crore.
Expenses rise faster than revenue
Total expenditure climbed about 49% year-on-year to ₹7,298 crore, outpacing revenue growth and exerting pressure on margins. The mismatch between top-line expansion and cost control contributed to the wider loss for the quarter.
Procurement costs for FMCG and grocery inventory — a major component of quick commerce operations — nearly doubled versus the prior year and formed a substantial share of overall expenses. Delivery-related costs also rose due to higher volumes and investments in delivery infrastructure.
Employee benefit expenses increased as the company hired across technology, operations and supply-chain roles. Advertising and promotional spending remained elevated amid intense competition in food delivery and instant commerce categories.
Net loss widens, cumulative losses remain significant
Swiggy posted a consolidated net loss of ₹1,065 crore in Q3 FY26, a rise of roughly 32–33% from the year-ago quarter. For the nine months to December 2025, cumulative losses exceeded ₹3,300 crore. The results show strong consumer adoption and scale, but also the distance yet to travel toward sustained profitability.
Healthy cash reserves provide runway
Despite widening losses, Swiggy reported cash and cash equivalents of over ₹13,500 crore at the end of December 2025. This liquidity position was bolstered by institutional placements and proceeds from strategic stake sales, giving the company flexibility to fund growth and absorb short-term losses.
Outlook: growth-focused, with increasing emphasis on unit economics
Swiggy’s performance mirrors a broader pattern across India’s consumer internet sector, where market leaders prioritise scale and category leadership over near-term profitability. With persistent demand for convenience-led services and rising traction for quick commerce, Swiggy is likely to continue investing in network expansion, technology and fulfilment capability.
Going forward, the company’s financial trajectory will hinge on managing procurement and delivery costs, improving delivery efficiencies, and progressively enhancing unit economics while sustaining growth in core and adjacent verticals.
