Swiggy faces quick-commerce test as Instamart losses hit ₹895 crore in Q2

Swiggy Ltd expects its quick-commerce business, Instamart, to have peaked its losses in the September quarter, as it steps up investments to accelerate growth amid intensifying competition.

The company expects Instamart’s adjusted Ebitda losses to decline from the ₹895 crore in the second quarter of fiscal year 2026-27 (FY27), with management guiding for a sequential margin improvement of around 100 basis points (bps) in the December quarter. Instamart’s losses widened from ₹849 crore a year ago.

Swiggy’s consolidated net loss narrowed 15.6% year-on-year to ₹922 crore from ₹1,092 crore, while revenue from operations grew 36% to ₹7,571 crore from ₹5,561 crore.

Quick answers to key questions

•5 QUESTIONS

1

How much did Swiggy Instamart lose in Q2 FY27?⌵

Instamart reported adjusted EBITDA losses of ₹895 crore in Q2 FY27, up from ₹849 crore a year earlier. Swiggy said it expects the losses to have peaked in the quarter.

2

Why did Instamart's losses widen in Q2 FY27?⌵

Swiggy increased investment to accelerate growth amid intense competition. Spending on pricing, customer acquisition and warehouse expansion also contributed to the wider losses.

3

When does Swiggy expect Instamart's losses to improve?⌵

Swiggy expects sequential margin improvement of around 100 basis points in the December quarter. It also expects contribution margin to improve after Q3, when it is guided to remain between 0 and -100 basis points of gross order value.

4

How fast did Instamart grow in Q2 FY27?⌵

Instamart's net order value rose 34.8% year on year to ₹6,594 crore, while orders increased 29.3% to around 130 million. Its monthly transacting user base grew 23% to 14.8 million.

5

How does Swiggy plan to differentiate Instamart from competitors?⌵

Swiggy is using its Noice private label, curated Nectr fruits and vegetables, and Switch brand partnerships to offer a differentiated assortment. It also plans to move Instamart to an inventory-led operating model, which it expects to improve contribution margin by around 80 basis points once fully implemented.

The company’s shares fell 5.01% to close at ₹211.30 on National Stock Exchange on 22 October, after touching an intraday low of ₹209.35, a record low for the stock.

“We believe the adjusted Ebitda losses to have peaked out in Q2FY27,” Swiggy said in its shareholders’ letter.

It expects the contribution margin to remain within the range of 0 to -100bps of gross order value in the third quarter, with sequential improvement thereafter.

Instamart’s net order value (NOV), which measures order value after discounts, grew 34.8% on-year to ₹6,594 crore. Orders increased 29.3% to around 130 million, while its monthly transacting user base expanded 23% to 14.8 million.

The company added 69 dark stores during the quarter, taking its network to 1,240 across 133 cities, compared with 1,102 a year ago.

Swiggy said month-one retention averaged more than 60% among transacting users for the quarter, while targeted pricing initiatives and a wider assortment helped drive engagement.

“As speed becomes table stakes in quick commerce and aggressive pricing proves unsustainable, we believe differentiated assortment will help us build a unique consumer proposition,” the company said.

Swiggy said it is attempting to differentiate Instamart through its private label Noice, curated fruits and vegetables under Nectr, and Switch, which brings together partnerships with around 400 brands. Noice products featured in more than one in eight orders, and customers buying the brand showed 15 percentage points higher retention, it added.

This comes as competition remains intense, with Blinkit, operated by Eternal, and other e-commerce companies, including Amazon and Flipkart, expanding their quick-commerce offerings.

The company is also preparing to move Instamart towards an inventory-led operating model following its transition to an India-owned and controlled structure. Swiggy expects this shift to improve contribution margin by around 80bps once fully implemented, with the transition expected to be completed over the next two to three quarters, it said in its letter.

Swiggy’s food delivery business delivered stronger profitability, with gross order value rising 17.7% on-year to ₹10,054 crore. Adjusted Ebitda climbed to a record ₹341 crore from ₹240 crore a year ago, while the margin improved to 3.4% of gross order value from 2.8%.

The company attributed the improvement to advertising-led monetization, higher order density and delivery-cost efficiencies. Its take rate reached a record 26.1%, while Bolt and 99-Store together accounted for more than a quarter of food-delivery volumes, the letter said.

Food delivery growth exceeded 20% on-year in September, excluding Toing, Swiggy’s separate app for affordable meals. The company retained its full-year growth guidance of 18-20% for the core food-delivery business and reiterated its longer-term target of a 5% adjusted Ebitda margin.

“As we had indicated last quarter, having achieved contribution break-even in May 2026, we chose to calibrate near-term investments to accelerate growth while remaining within our guided range of 0 to -100bps on contribution margin,” the company said.

Sowmya is a senior correspondent covering retail, FMCG, corporate strategy, and consumer technology, with a focus on how companies navigate demand, competition, and shifting consumption patterns across both urban and emerging markets. She reports on business decisions through both breaking news and long-form stories.<br><br>An alumna of the Asian College of Journalism, she has reported on a range of consumer-facing industries, including e-commerce, healthcare, and startups. Her work focuses on understanding how companies grow, compete, and adapt in a changing economic environment, as well as how broader trends translate into everyday consumption and business outcomes.<br><br>She is particularly interested in how business decisions show up in everyday consumer experiences, and often looks at trends through the lens of how they play out on the ground.<br><br>Prior to her current role, Sowmya was part of the editorial team at YourStory, where she covered startups and entrepreneurship. She has also worked on longform stories at The Morning Context and reported on technology at The Hindu in Chennai, gaining experience across different formats and newsrooms.<br><br>Her reporting aims to be accurate and accessible, with an emphasis on context and careful sourcing. She is particularly interested in stories that sit at the intersection of business strategy and consumer behaviour.<br><br>Based in Bengaluru and always curious about evolving consumption trends, she is often exploring new coffee and kombucha spots, both as a personal interest and a way to observe how consumer preferences are taking shape on the ground.

Get Latest real-time updates

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

HomeCompaniesCompany ResultsSwiggy faces quick-commerce test as Instamart losses hit ₹895 crore in Q2

✕

Wait for it…

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.