Swiggy (SWIGGY) Q2 FY27's Q2 Revenue Jumps 36% as Losses Widen on Quick Commerce Push
Swiggy's revenue surged on strong order growth, but its net loss widened sequentially as heavy spending on its quick commerce business, Instamart, continued.
Swiggy's Q2 FY27 revenue grew 36% year-on-year to ₹7,571 crore. However, the net loss widened to ₹922 crore as investments in quick commerce expansion outpaced food delivery profits.
Swiggy’s latest quarter shows a business running on two speeds. Revenue growth accelerated, but profitability moved in the opposite direction as the company doubled down on its costly quick commerce bet. The result is a familiar tension: a maturing food delivery engine funding an ambitious, loss-making expansion.
Revenue for the September quarter rose 36% year-on-year to ₹7,571 crore, a solid 11% jump from the previous quarter. Yet, the net loss widened 17% sequentially to ₹922 crore. The company's net profit margin, while improving from a year ago, remained deeply negative at -12.2%.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 7,571YoY +36% | 6,812 | 5,561 |
| Profit (₹ Cr) | -922YoY +16% | -791 | -1,092 |
| Net Profit Margin (%) | -12.2YoY +38% | -11.6 | -19.6 |
Why the Losses Grew
The widening loss stemmed from a deliberate push to accelerate growth in quick commerce. According to reports from Fortune India and Business Standard, Instamart's gross order value surged 31% year-on-year. But this growth came at a high cost. The segment's adjusted EBITDA loss ballooned to ₹895 crore, up from ₹778 crore in the prior quarter.
Management attributed this to spending on customer reactivation, a shift in user mix, and the cost of new, under-utilised dark stores. Swiggy added 69 stores in the quarter, taking its network to 1,240. While food delivery posted a record ₹341 crore in adjusted EBITDA, those profits were more than consumed by Instamart's investments.
The Path Ahead and Persistent Costs
Management, in an earnings call covered by AlphaStreet, expects Instamart's losses to have peaked this quarter. They guided for a 100-basis-point improvement in its EBITDA margin next quarter. The company also plans a transition to an inventory-ownership model, which could eventually add 80 basis points to margins.
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ISIN: INE00H001014
However, competitive intensity isn't fading. Analysts note discounting in quick commerce has eased but remains high, and new e-commerce entrants are planning major dark store expansions. Furthermore, new labour codes mandating contributions to a gig worker welfare fund could add ₹1.5-2.5 per order, as noted by Morgan Stanley analysts.
Key Points
- Revenue growth remained robust at 36% YoY, driven by a 25% increase in gross order value across consumer businesses.
- The consolidated net loss widened sequentially to ₹922 crore as spending on quick commerce growth outpaced food delivery profits.
- Food delivery profitability hit a record high, with adjusted EBITDA of ₹341 crore, demonstrating the core business's strength.
- Management believes Instamart's losses peaked in Q2 and expects margin improvement, but the path to group profitability remains extended.
- Foreign portfolio investors reduced their stake by over 5 percentage points in the quarter, reflecting caution over the prolonged investment phase.
Hexa Perspective
The quarter underscores Swiggy's strategic gamble: using its profitable, cash-generating food delivery business to fund a battle for quick commerce market share. The food delivery unit's record profits show the model works where scale is established.
The critical question is how quickly Instamart can replicate that leverage. Management's guidance suggests losses may plateau, but the promised margin improvements must materialise against a backdrop of rising competition and potential regulatory costs. Until Instamart shows a clearer path to breakeven, Swiggy's consolidated profits will remain hostage to its growth ambitions.
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