Swiggy Limited has announced its consolidated financial results for Q1 FY26, revealing a powerful growth trajectory across segments, especially Quick-Commerce and Supply Chain. However, this growth comes with a steep cost, as the company also posted a significant quarterly loss. The dual nature of Swiggy’s performance — booming topline expansion and deepening net losses — paints a complex picture of a company in aggressive scale-up mode.
Explosive Revenue Growth Led by Quick-Commerce and Supply Chain
Swiggy posted a consolidated revenue of ₹5,048 crore for the quarter ended June 30, 2025, representing a 54% year-on-year (YoY) increase. The topline expansion was primarily fueled by a 115.5% YoY growth in Quick-Commerce revenue and a 78.1% YoY jump in the Supply Chain business. Swiggy’s total income for Q1 stood at ₹5,048 crore, including ₹87 crore in other income.
Segment-wise breakdown shows:
Quick-Commerce revenue at ₹806 crore (up from ₹374 crore YoY)
Supply Chain and Distribution surged to ₹2,259 crore
Food Delivery revenue rose to ₹1,800 crore (up 18.6% YoY)
Platform Innovations contributed ₹20 crore
B2C (Business-to-Consumer) Gross Order Value (GOV) rose to ₹14,797 crore, marking a 45.2% YoY rise, while adjusted B2C revenue jumped 38.6% YoY. However, adjusted consolidated EBITDA stood at -₹813 crore, significantly wider than the -₹465 crore in Q1 FY25.
Food Delivery: Meeting Guidance but Facing Margin Pressure
Swiggy’s flagship Food Delivery segment reported a GOV of ₹8,086 crore, growing 18.8% YoY. The adjusted EBITDA margin stood at 2.4% of GOV, showing a YoY improvement of 152 basis points but slipping sequentially by 52 bps. The segment's EBITDA came in at ₹192 crore, down 9.6% QoQ.
However, profitability concerns remain. The Food Delivery margin contracted from 13.5% to 11.2% QoQ — a drop that may concern investors as this is Swiggy’s most mature and monetizable segment.
Quick-Commerce: Hyper Growth with Improving Unit Economics
Swiggy's Quick-Commerce vertical (Instamart) continues to be the crown jewel of growth. The segment saw GOV jump 107.6% YoY (and 21.1% QoQ) to ₹5,655 crore. This growth was powered by the addition of 1.2 million monthly transacting users (MTUs) and 41 new dark stores.
Though the vertical remains unprofitable, unit economics are showing tangible improvement. The contribution margin improved by 97 basis points to -4.6%, while adjusted EBITDA margin improved by 213 bps QoQ to -15.8%, indicating better operational leverage and path to profitability.
Sequentially, Quick-Commerce’s loss margin improved from -111.9% to -98.9%, a strong signal that scale is beginning to soften the burn rate.
Supply Chain and Other Segments: Backbone of Efficiency
The Supply Chain and Distribution segment saw strong YoY revenue growth, reaching ₹2,259 crore from ₹1,268 crore in Q1 FY25. Segment losses narrowed from ₹218 crore last year to ₹47 crore in Q1 FY26, showing a trend toward operational efficiency.
The "Out-of-Home" segment (including DineOut and SteppinOut) posted ₹77 crore in revenue and is now firmly profitable with margins of 6.5%, indicating that Swiggy’s diversification is bearing fruit.
Financial Summary: Growing Losses Amid Expansion
Despite the robust revenue performance, Swiggy reported a net loss of ₹1,197 crore for Q1 FY26, compared to ₹611 crore in Q1 FY25. The loss includes:
Finance cost: ₹41 crore
Share-based payment expense: ₹265 crore
Depreciation & amortization: ₹288 crore
Loss from associate: ₹1 crore
On a year-to-date basis (FY25), the company reported a total loss of ₹3,117 crore.
Key Risks: Cash Burn and Margin Squeeze
While Swiggy’s expansion strategy is yielding higher revenues and better unit economics in newer verticals, it’s also burning through massive cash. The ₹1,197 crore loss in a single quarter is a red flag for sustainability unless supported by fundraising or operational cash flow improvements.
Also, margin contraction in the Food Delivery business is a worrying trend — dropping from 13.5% to 11.2% QoQ — suggesting competitive pressures or increasing marketing costs.
Conclusion: Growth with Growing Pains
Swiggy’s Q1 FY26 performance clearly shows a company successfully scaling its new growth engines — Quick-Commerce and Supply Chain — while struggling to balance profitability in its legacy businesses. The focus on operational efficiency, platform innovation, and diversification seems to be working, but the massive cash burn and slipping margins in core segments could weigh on investor sentiment.
As Swiggy eyes doubling Quick-Commerce revenue and pushing toward profitability in FY26, the road ahead will depend on how well it can control costs and translate scale into sustainable margins.
Disclaimer:
This article is for informational purposes only and is based on publicly available financial data and reports. It does not constitute investment advice or a recommendation to buy, sell, or hold any securities. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author and the platform are not responsible for any losses arising from reliance on this information.
