Swiggy narrowed its consolidated net loss to Rs 922 crore in Q2 FY27, down 16% year-on-year, driven by a 36% rise in operating revenue to Rs 7,571 crore. However, losses at Instamart and cannibalization from the new Toing app weighed on profitability despite overall growth.
- Q2 net loss narrowed 16% YoY to Rs 922 crore amid 36% revenue increase.
- Toing app adds new users but cannibalizes main Swiggy food delivery demand.
- Instamart quick commerce revenue grows but losses widen; inventory shift planned.
What happened
In the quarter ending September 2026, Swiggy’s net loss narrowed by 16% compared to the prior year to Rs 922 crore, reflecting improved operational performance despite a sequential increase in losses. The company’s overall revenue rose 36% year-on-year to Rs 7,571 crore, fueled predominantly by food delivery and quick commerce segments. The core food delivery business produced an adjusted EBITDA profit of Rs 341 crore with a food delivery gross order value growing 18% year-on-year to Rs 10,054 crore.
Swiggy launched a new budget-focused app, Toing, featuring affordable meals priced between Rs 49 and Rs 199. This app attracted nearly two-thirds of users who were either new or long-inactive on Swiggy’s platforms. While Toing stimulated category growth and offered a fresh value proposition, it also cannibalized some demand from Swiggy’s main food delivery app. At the same time, Instamart, the company's quick commerce business, expanded revenue by 26% year-on-year but experienced a widening adjusted EBITDA loss amid intense competition from other players like Flipkart and Amazon who are ramping in the space.
Why it matters
Swiggy’s ability to narrow losses concurrently with strong revenue growth signals improving operational leverage and ongoing expansion in India’s competitive food and quick commerce markets. The launch of Toing represents a strategic move to capture price-sensitive customers and re-activate lapsed users, potentially unlocking a significant underserved segment. This budget offering could help Swiggy increase its total addressable market and accelerate food delivery gross order value growth well beyond current guidance.
However, managing the interplay between multiple platforms poses challenges, as seen in the unanticipated cannibalization of core demand by Toing. Additionally, the quick commerce segment remains highly competitive with elevated marketing and operational costs, as Instamart continues to post steep losses. Swiggy’s transition to an inventory-led model in Instamart aims to improve margins and control, but it will require significant execution effort over coming quarters to realize its potential.
What to watch next
Investors and market observers should watch how successfully Swiggy manages Toing’s growth without eroding core business profitability, and whether the combined food delivery marketplace can achieve the projected 25–30% annual growth rate. Monitoring monthly active user trends and order value metrics across both apps will provide early signals of market acceptance and demand shifts.
The progress of Instamart’s inventory model transition is also critical. Completion of this shift in the next 2–3 quarters could mark a turning point in quick commerce profitability, although competitive pressures from e-commerce giants remain intense. Additionally, how Swiggy balances growth investments with margin improvements in a tightening competitive landscape will be pivotal for its path to profitability.