Swiggy Q2 Results Preview: Instamart Drives Growth As Food Delivery Margins Firm Up

Food delivery and quick commerce giant Swiggy Ltd. is set to announce its financial results for the second quarter of the current financial year on Thursday. Here's what analysts see in store for the quarter under review.

Brokerages project Swiggy to deliver steady growth across both its core verticals, Food Delivery and Quick Commerce, in the second quarter, aided by rising order volumes, improved monetisation, and early signs of operating leverage.

While competition remains intense, particularly in food delivery, analysts expect overall gross order value to expand in the mid-to-high teens year-on-year, with margins showing incremental improvement.

Swiggy's Instamart business is projected to outpace its food delivery arm, supported by sustained demand and higher average order values. However, most firms expect Ebitda losses in quick commerce to remain elevated in absolute terms, given continued investments in network and fulfilment capacity.

Swiggy Q2 Consolidated Results Preview (Bloomberg Estimates)

• Revenue likely to rise 46.5% to Rs 5,284.63 crore versus Rs 3,601.45 crore.

• Net loss to widen at Rs 917.21 crore versus loss of Rs 625.53 crore.

• Ebitda loss at Rs 773.13 crore versus loss of Rs 675.8 crore.

JPMorgan | Rating: Overweight | Target: Rs 500

• Food Delivery: Expects gross order volume growth of 5% quarter-on-quarter and 18% year-on-year; contribution margin to stay flat at 7.3% and Ebitda margin steady at 2.4%.

• Quick Commerce (QC): Forecasts 75 store additions, 20% quarter-on-quarter gross order volume growth, contribution margin improving 60bps to -4% of GMV; Ebitda loss expected to be at Rs 900 crore, which is broadly unchanged.

• Sees Swiggy as India's #2 local Internet services player, steadily regaining ground in food delivery and quick commerce with stronger execution and scale.

• Key Risks: Market share loss, AOV pressure, heightened competition (Zepto, Blinkit), tighter regulation on delivery models, or delays in breakeven.

Jefferies | Rating: Buy | Target: Rs 421.55

• Food Delivery: Gross order volume to rise 18% year-on-year and 5% quarter-on-quarter with slight sequential margin expansion aided by operating leverage.

• Instamart: Strong 20% quarter-on-quarter gross order volume growth led by higher orders and Ebitda losses to remain at levels similar to first quarter.

Nirmal Bang | Rating: Buy | Target: Rs 544

• Food Delivery: Gross order volume expected to grow 18% year-on-year, with robust momentum but limited sequential improvement in adjusted Ebitda due to aggressive competition.

• Revenue: Likely to rise 20% year-on-year, aided by higher platform fees and stronger ad monetisation.

• Profitability: Expects 20 bps expansion in adjusted Ebitda margin to 2.6% of gross order volume.

• Quick Commerce: Anticipates 99% year-on-year gross order volume growth for Instamart with 230bps EBITDA margin improvement and about 100bps sequential contribution margin expansion. However, absolute losses may stay near Q1 levels.

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