Swiggy's Q2 loss widens as bullish marketing, delivery costs outpace revenue growth

Swiggy’s losses widened on a year-on-year basis in the quarter ended September 30 as higher spending on marketing, logistics, and inventory outpaced revenue growth.

Swiggy posted revenue from operations of Rs 5,561 crore in Q2 FY26, up sharply from Rs 3,601 crore earned a year earlier. Total revenue climbed to Rs 5,620 crore.

However, the rise in revenue couldn’t outstrip expenses, which climbed 55.7% to Rs 6,711 crore from Rs 4,309 crore in Q2 FY25. As a result, Swiggy’s net loss widened to Rs 1,092 crore, from Rs 626 crore a year earlier.

Purchases of stock-in-trade also contributed to the rising expenses, jumping 68.4% YoY to Rs 2,330 crore, while advertising and sales promotion expenses almost doubled to Rs 1,039 crore as the company intensified marketing efforts. Meanwhile, delivery and related charges increased 30.2% YoY to Rs 1,426 crore.

Swiggy delivered robust growth across its core business segments in the July-September quarter.

Swiggy reported a sharp rise in platform activity for the quarter ended September 30, 2025, with total gross order value (GOV) climbing 48% year-on-year to Rs 16,683 crore. Average monthly transacting users increased 34% to 22.9 million, with 36% of users engaging across more than one Swiggy service.

Food delivery service revenue grew 21.9% year-on-year to Rs 1,923 crore. EBIT (earnings before interest and taxes) for the segment, indicating core operational profitability, more than doubled to Rs 251 crore from Rs 122 crore a year earlier.

Instamart saw GOV double to Rs 7,022 crore, rising 108% year-on-year and 24% sequentially. Average order value increased nearly 40% to Rs 697. Instamart operated 1,102 dark stores across 128 cities, covering 4.6 million square feet.

The quick commerce revenue doubled to Rs 980 crore from the corresponding period last year. However, the segment’s EBIT loss widened significantly to Rs 739 crore from Rs 317 crore in Q2 FY25.

Revenue from supply chain and distribution service, which offers comprehensive supply chain services to wholesalers, retailers, and FMCG brands leveraging its warehousing capabilities, surged 76.2% YoY to Rs 2,560 crore. The segment demonstrated improved profitability, with EBIT loss narrowing substantially to Rs 18 crore from Rs 61 crore in Q2 FY25—a 70.5% reduction in losses.

Earlier in September, Swiggy spun off Instamart into a wholly owned subsidiary, Swiggy Instamart Private Limited, with the board clearing the plan. The company will transfer all of Instamart’s assets, employees, and contracts to the new entity through a slump sale, effectively moving the business as a single unit onto a separate balance sheet.

During the quarter, Swiggy also launched Giftables, a new on-demand gifting service for users to order curated items such as cakes, flowers, perfumes, and electronics, delivered within an hour.

Swiggy also plans to raise as much as Rs 10,000 crore ($1.2 billion) through a mix of public or private offerings, as it prepares for its next phase of expansion.

In a filing to the stock exchanges on Thursday, the Bengaluru-based company said its board will meet on November 7 to consider and approve the fundraising proposal. The company didn’t specify the exact route but said options include qualified institutional placements and other securities.

Meanwhile, Swiggy and Zomato also face higher tax outgo after the government brought delivery fees under the 18% GST bracket. The move, approved at the 56th GST Council meeting, makes the platforms responsible for collecting and remitting tax on behalf of delivery partners.

Previously, delivery fees operated in a grey area as gig workers were unregistered under GST. By invoking Section 9(5) of the CGST Act, the Council has now deemed Swiggy and Zomato as suppliers of delivery services.

Swiggy shares were relatively unchanged ahead of the company’s second-quarter earnings announcement, slipping 0.23% to close at Rs 418 on Wednesday after a muted session.

(The copy was updated with additional details.)