Swiggy's Q4 net loss narrows to Rs 800 cr

While acknowledging that the quick commerce category continues to remain a very highly competitive segment in a multi-player market, Swiggy said it sees Instamart growing to over Rs 1 lakh crore net order value business with 4-5 per cent EBITDA earnings before interest tax depreciation and amortization over the medium term.

Food delivery and quick commerce firm Swiggy on Friday reported a narrowing of consolidated net loss to Rs 800 crore for March quarter FY26. The company, which owns Instamart, had incurred a loss of Rs 1,081 crore in the year-ago period, as per a regulatory filing. However, for full financial year 2025-26, Swiggy's net loss widened to Rs 4,154 crore from Rs 3,117 crore a year ago, on account of a rise in total expenses including purchase of stock-in-trade; advertising and sales promotion; delivery and related charges; among others. Revenue during the fourth quarter rose nearly 45 per cent to Rs 6,383 crore as against Rs 4,410 crore a year ago. Total expenses also soared to Rs 7,448 crore from Rs 5,610 crore a year ago. During the quarter under review, Swiggy food delivery hit a 15-quarter high with gross order value (GOV) growth of 22.6 per cent YoY, the highest since demand normalised in the post-COVID period. Meanwhile, Instamart's GOV grew 68.8 per cent YoY to Rs 7,881 crore. ''Food delivery has grown at its strongest pace in nearly four years, crossing Rs 1,000 crore in annual adjusted EBITDA and defying scepticism around a sector slowdown, with meaningfully better margins than a year ago. Out of home continues to be a profitable and growing part of the business,'' said Sriharsha Majety, MD & Group CEO, Swiggy. ''In quick commerce, the next phase will be defined by anticipating consumer needs, not merely fulfilling them. Unit economics continue to improve quarter-on-quarter, and we remain on track for contribution margin break-even in line with our guidance. The strong balance sheet gives us room to be disciplined and deliberate as we enter FY27,'' he added. In a letter to shareholders, Swiggy informed that it shut down Snacc -- its quick delivery service of snacks, beverages, and ready-to-eat food items -- as it was ''not convinced on the steady state size of the category''. ''We launched, tested, and shut down Snacc within the fiscal year. The micro-kitchen model requires a high density of demand in micro markets to operate on sustainable economics. We pro-actively shut down Snacc during the quarter as we were not convinced on the steady state size of the category for the incremental complexity involved to run the business,'' Swiggy stated in the letter. While acknowledging that the quick commerce category continues to remain a very highly competitive segment in a multi-player market, Swiggy said it sees Instamart ''growing to over Rs 1 lakh crore net order value business with 4-5 per cent EBITDA (earnings before interest tax depreciation and amortization) over the medium term''. The medium term opportunity in this sector remains very attractive and we see ourselves well placed to appropriate a large share of the industry growth from here, having achieved sustainable unit economics, Swiggy said on quick commerce segment. The company also shared that it witnessed widespread migration of the gig workforce over the last four weeks on account of the peak harvest season and major state elections, that has constrained delivery partner supply across the entire industry, causing a momentary increase in its promised delivery times across some cities. ''We expect the situation to start normalising over the next couple of weeks,'' it said.