Swiggy Ltd. saw its shares fall over 3% in Friday morning trade after the food delivery giant reported a significant widening of losses in the June 2025 quarter. As of 9:35 AM, the shares were trading 3.29% lower at Rs 390.45.
The company posted a consolidated net loss of ₹1,197 crore, almost double the ₹611 crore loss recorded during the same period last year. While revenue grew a strong 54% year-on-year to ₹4,961 crore—up from ₹3,222 crore in Q1 FY24—the surge in expenses, especially in the Quick Commerce segment under the Instamart brand, dragged down profitability.
Quick Commerce Weighs Heavy on Margins
Instamart, Swiggy’s fast-growing grocery delivery arm, continues to be a cash-guzzler. EBIT (Earnings Before Interest and Tax) losses in the Quick Commerce segment widened sharply to ₹797 crore, compared to a loss of ₹379 crore in the same quarter last year.
Quick Commerce revenue, however, showed impressive growth—doubling from ₹374 crore to ₹806 crore year-on-year—indicating a rise in order volumes, but not enough to offset operational losses.
EBITDA Loss Widens
Swiggy’s overall EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) loss rose to ₹954 crore in Q1 FY26, up from ₹544 crore in the same quarter last year. Rising logistics and supply chain costs, along with continued investment in platform innovation and customer acquisition, contributed to the larger deficit.
Food Delivery Business Sees Steady Growth
On a more stable front, Swiggy’s core food delivery business delivered solid growth. Revenue from this segment rose to ₹1,799 crore from ₹1,515 crore last year. EBIT from food delivery improved to ₹202 crore from ₹67 crore, suggesting better cost efficiency and increased order volumes.
Gross Order Value (GOV) for the food delivery vertical increased 18.8% year-on-year to ₹8,086 crore. In comparison, the GOV for the Quick Commerce business surged 108% to ₹5,655 crore, highlighting its rapid expansion despite losses.
The total B2C GOV across businesses reached ₹14,797 crore, registering a 45% year-on-year growth.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
