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Swiggy's Losses Widen Despite Revenue Surge
30 Jan
Summary
- Revenue surged 54% year-on-year to Rs 6,148 crore in Q3FY26.
- Net losses widened to Rs 1,065 crore due to Instamart investments.
- Company ended the quarter with Rs 13,512 crore cash balance.
In the third quarter of fiscal year 2026, Swiggy announced revenue figures that exceeded estimates, reaching Rs 6,148 crore, a 54% increase year-on-year. This growth was fueled by significant expansion in its food delivery services and continued momentum in quick commerce. Despite the revenue upswing, the company's consolidated net loss expanded to Rs 1,065 crore, surpassing projections. This widening loss is attributed to substantial investments made in the Instamart quick commerce division, alongside competitive market pressures.
The company's food delivery segment experienced its most robust growth in three years, with gross order value increasing by 20.5% year-on-year. This segment also achieved an adjusted EBITDA of Rs 272 crore, indicating improved profitability. Conversely, Swiggy's quick commerce arm, Instamart, continued to show rapid expansion in gross order value, exceeding 100% year-on-year growth for the fourth consecutive quarter. However, this segment remained a significant contributor to the overall losses.
Swiggy concluded the quarter with a strong cash position of Rs 13,512 crore, bolstered by proceeds from a qualified institutional placement in December. Further strengthening its financial standing, the company completed the sale of its stake in Rapido in January, increasing its pro forma cash reserves to approximately Rs 15,900 crore. The company views this robust balance sheet as a strategic advantage in the face of escalating competition in the quick commerce sector.
