Swiggy's Q2 Sees Widening Losses, Instamart Drives Burn Despite Growth

Economy

30th October 2025, 12:14 PM

Swiggy's Q2 Sees Widening Losses, Instamart Drives Burn Despite Growth

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Short Description :

Foodtech major Swiggy reported another quarter of losses in Q2 FY26. Its quick commerce arm, Instamart, significantly contributed to these losses, although its adjusted EBITDA loss decreased sequentially. Instamart's gross order value surged 108% year-on-year and 24% quarter-on-quarter, with average order value also growing robustly. The company expanded its dark store network to over 1,100 locations.

Detailed Coverage :

Swiggy, the prominent food delivery platform, has reported its financial results for the second quarter of fiscal year 2026, revealing continued losses. The primary driver behind these losses remains its quick commerce division, Instamart. However, the company has managed to slightly reduce Instamart's adjusted EBITDA loss on a sequential basis, from INR 896 crore in Q1 FY26 to INR 849 crore in Q2 FY26. Despite this sequential improvement, the year-on-year adjusted EBITDA loss for Instamart has dramatically increased by 136.4%, soaring from INR 359 crore in the prior year, highlighting significant cash burn for the vertical's expansion.

On the growth front, Instamart demonstrated strong performance. Its gross order value (GOV) experienced substantial growth, increasing by 108% year-on-year and 24% quarter-on-quarter, reaching INR 7,022 crore in Q2. The average order value (AOV) also saw healthy gains, growing 40% year-on-year and 14% quarter-on-quarter to INR 697 crore.

To support this expansion, Instamart added 40 new dark stores during the quarter, bringing its total operational store count to 1,102 across 128 cities.

Impact This news is significant for investors tracking the food tech and quick commerce sectors in India. While the growth metrics for Instamart are impressive, the substantial year-on-year increase in losses indicates a continuing challenge in achieving profitability. Investors will be keen to see strategies to curb cash burn while sustaining growth. The expansion of dark stores suggests a commitment to market share, which could pay off long-term but requires continuous funding. The overall financial health and path to profitability for Swiggy, particularly its high-investment vertical Instamart, will be a key watchpoint. Rating: 6/10

Difficult Terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. Gross Order Value (GOV): The total value of all orders placed through the platform before any deductions. Average Order Value (AOV): The average amount spent by a customer per order. Dark Stores: Warehouses or fulfillment centers that are not open to the public and are used exclusively for online order fulfillment.