- Swiggy's Q1 FY27 net loss narrowed to Rs 791 crore from Rs 1,197 crore year ago
- Revenue from operations rose 37.3% to Rs 6,812 crore from Rs 4,961 crore
- EBITDA loss reduced to Rs 650 crore from Rs 954 crore in the previous year quarter
Swiggy Ltd.'s net loss for the first quarter of FY27 narrowed year-on-year, according to an exchange filing on Thursday. The company posted a net loss of Rs 791 crore compared to a loss of Rs 1,197 crore in the -year ago period. However, revenue from operations surged 37.3% to Rs 6,812 crore from Rs 4,961 crore.
Pressure decreased on the operational front as earnings before interest, taxes, depreciation, and amortisation loss also narrowed to Rs 650 crore as against a loss of Rs 954 crore in the corresponding quarter of last year.
The company said increased investments to improve delivery partner availability led to a sequential decline in margins. Despite this, adjusted Ebitda improved by 70 basis points year-on-year, driven by higher take rates and operating leverage. Swiggy reiterated its medium-term guidance of achieving a 5% adjusted Ebitda margin on gross order value (GOV).
Food delivery remained resilient, with GOV growing 17.4% year-on-year. The company said restaurant-driven cancellations during the early part of the quarter affected performance, adding that like-for-like GOV growth would have been around 18% after normalising for the impact.
Quick commerce business Instamart continued to expand rapidly, with GOV rising 39.8% year-on-year. Swiggy also achieved contribution margin break-even in the segment, marking an important operational milestone.
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The company said more than 45% of its Instamart store network turned contribution margin positive during the quarter, up from 30% in the previous quarter. It expects contribution margins for Instamart to remain in the 0% to -1% range over the next couple of quarters as investments continue.
Swiggy expects the overall quick commerce business to achieve adjusted Ebitda break-even at an annualised net order value (NOV) run rate of around Rs 60,000 crore. It reiterated its long-term ambition of scaling the business beyond Rs 1 lakh crore in NOV while delivering a 4-5% adjusted Ebitda margin.
The company plans to add around 75 new Instamart stores during the second quarter.
Other income increased sharply to Rs 211 crore from Rs 87 crore a year ago, while platform average monthly transacting users grew 27.4% year-on-year.
Out-of-home consumption GOV surged 44.8%, reflecting continued recovery in the dining-out segment.
Swiggy also highlighted strong traction for its "99 Store" initiative and the recently launched Toing platform, which has now expanded to 50 cities. The company said it remains confident of delivering 18-20% growth in its core food delivery business excluding Toing, supported by healthy user additions and higher basket values.
Bolt is now live in more than 700 cities, while the Eat Right initiative contributes around 15% of total food delivery volumes with higher average order values.
The company said it shut down Snacc after concluding that the category had limited long-term potential. Initial investments in Toing, meanwhile, are largely focused on customer acquisition.
Swiggy also said that once shareholders approve the proposal to increase foreign shareholding to 49.5%, the transition is expected to be completed over the following two to four quarters.
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