Swiggy's Food Delivery Revenue Surges 22% in Q2FY26, Driven by Innovations and User Growth

Food and grocery delivery platform Swiggy Ltd has announced a robust performance for its food delivery segment in the September quarter of fiscal year 2026 (Q2FY26), with revenue climbing 22% year-on-year to ₹2,206 crore. The company experienced its fastest order growth in two years, attributed to the successful implementation of new platform innovations and targeted offerings.

Key drivers behind this surge include Swiggy's 'Bolt' service, which offers 10-minute food delivery and is now operational in over 700 cities, contributing over one in ten orders. The 'DeskEats' program, aimed at office-goers, has expanded to more than 7,000 tech parks across 30 cities. On the affordability front, the '₹99 Store', offering value-for-money meal options, has scaled to over 500 cities and captures a high single-digit share of total orders. The 'Food on Train' initiative has also extended its coverage.

Financially, Swiggy's food delivery segment recorded an 18.8% year-on-year growth in Gross Order Value (GOV) to ₹8,542 crore. The platform also added approximately 0.9 million new monthly transacting users (MTUs), bringing the total to 17.2 million. The segment's profitability improved significantly, with adjusted EBITDA soaring 114% year-on-year to ₹240 crore, and margins expanding to 2.8% of GOV.

Group CEO and MD Sriharsha Majety highlighted that this growth was achieved despite volatile macro-consumption trends and adverse weather conditions. The company is also exploring new avenues, such as the experimental 'Toing' app in Pune, to cater to budget-conscious consumers and test alternative marketplace models for low average order value meals.

Impact: This strong performance by Swiggy highlights the resilience and growth potential within India's online food delivery sector. It suggests that innovative service models and strategic segmentation can drive significant revenue and profit increases, even in competitive markets. This could influence investor sentiment towards the broader quick-commerce and food delivery space, potentially impacting the strategies of listed competitors and private companies looking for funding or an IPO. Investors will be keen to see if Swiggy can sustain this growth and profitability trajectory. Rating: 7/10

Difficult Terms: * Q2FY26: The second quarter of the financial year 2026, typically from July to September 2025. * YoY: Year-on-Year, comparing a metric to the same period in the previous year. * MTUs: Monthly Transacting Users, unique users making at least one purchase per month. * GOV: Gross Order Value, the total value of all orders before deductions. * Adjusted EBITDA: A measure of operational profitability, excluding interest, taxes, depreciation, and amortization, with certain adjustments. * Basis Points: One-hundredth of a percent (0.01%); 125 basis points equals 1.25%. * Unit Economics: The profitability of a single unit of product or service. * AOV: Average Order Value, the average spending per order.