Swiggy Q2 FY26 Results: Revenue Soars 54%, But Widening Losses to Rs 1,092 Cr Raise Questions

Swiggy, India's leading on-demand convenience platform, reported a mixed set of results for the second quarter of fiscal year 2026. The company posted a spectacular 54.4% year-on-year (YoY) surge in revenue from operations, driven by the explosive growth of its quick commerce arm, Instamart. However, this aggressive expansion came at a cost, with the company's consolidated net loss widening significantly to Rs. 1,092 crore from Rs. 626 crore in the same period last year.​

The results present a classic high-growth tech narrative: a relentless focus on capturing market share, leading to a massive top-line jump but also a deeper bottom-line deficit. This analysis breaks down Swiggy's Q2 performance, its revenue sources, and what it means for investors.

Table of Contents

1. Swiggy's Q2 Financials: A Story of High Growth and High Burn
2. Instamart's Explosive Growth vs. Food Delivery's Steady Path
3. What's Driving the Strategy? Analysis for Investors
4. The Investor's Bottom Line: A High-Risk, High-Reward Bet
5. Frequently Asked Questions (FAQs)

Swiggy's Q2 Financials: A Story of High Growth and High Burn

Swiggy's Q2 financial statement highlights the company's dual focus on scaling its new ventures while trying to improve the profitability of its core business.

Key Financial Highlights for Q2 FY26

The key story is the surge in expenses, which grew slightly faster than revenue, at 55.7% YoY. This was primarily driven by a 94% YoY jump in advertising and sales promotion costs to Rs. 1,039 crore and a 30% increase in delivery expenses.​​

Instamart's Explosive Growth vs. Food Delivery's Steady Path

Swiggy's revenue growth is a tale of two distinct segments:

• Food Delivery: The company's original and core business continues to show steady growth and improving profitability. The Gross Order Value (GOV) for this segment grew by a healthy 18.8% YoY to Rs. 8,542 crore. More importantly, its profitability improved, with the Adjusted EBITDA margin reaching 2.8% of GOV, up 125 basis points from the previous year.​

• Quick Commerce (Instamart): This segment is the undisputed growth engine but also the primary source of its cash burn. Instamart's GOV skyrocketed by a massive 107.6% YoY to Rs. 7,022 crore, highlighting the incredible traction Swiggy is getting in the 10-minute grocery delivery space. However, this growth came at a high cost, with the segment reporting a loss of Rs. 849 crore for the quarter. A silver lining is that the segment's negative adjusted EBITDA margin improved sequentially, indicating that operational efficiencies are slowly kicking in.​

What's Driving the Strategy? Analysis for Investors

Swiggy's Q2 results clearly lay out its current strategy: use the cash flow from the mature food delivery business to fund an aggressive, cash-guzzling expansion in the high-potential quick commerce market. This is evident from the company's plan to raise up to Rs. 10,000 crore through a Qualified Institutional Placement (QIP) to fuel its expansion and compete with rivals.​

This strategy stands in contrast to its chief rival, Zomato, which reported a net profit in the same quarter, putting the spotlight on Swiggy's widening losses and its focus on growth over near-term profitability.​

The Investor's Bottom Line: A High-Risk, High-Reward Bet

The Bull Case (Pros)

• Market Leadership in Quick Commerce: Swiggy is emerging as a dominant player in the quick commerce space, a segment with a massive addressable market. The 108% GOV growth is a testament to its strong execution.​

• Improving Core Business: The food delivery segment is not only growing at a healthy double-digit rate but is also becoming more profitable, providing a stable foundation for the company.​

The Bear Case (Cons)

• Deepening Losses: The widening net loss is the single biggest concern for investors. The path to consolidated profitability remains unclear and distant.​

• High Cash Burn: The quick commerce business is extremely capital-intensive, and the need for further fundraising highlights the ongoing cash burn required to sustain this growth.​

• Competitive Pressure: The profitability of its listed rival, Zomato, puts pressure on Swiggy to demonstrate a clear path to profitability.​

Frequently Asked Questions (FAQs)

1. What were Swiggy's revenue and net loss in Q2 FY26?
Swiggy reported revenue from operations of Rs. 5,561 crore (up 54.4% YoY) and a consolidated net loss of Rs. 1,092 crore (widened by 74.4% YoY).​

2. Why did Swiggy's losses increase despite strong revenue growth?
The losses widened primarily due to heavy investments and high costs associated with the rapid expansion of its quick commerce business, Instamart, including a 94% YoY jump in advertising and promotion expenses.​​

3. How is Swiggy's food delivery business performing?
The core food delivery business is performing well. Its Gross Order Value grew by 18.8% YoY, and its profitability improved, with the adjusted EBITDA margin turning positive at 2.8% of GOV.​

4. How does Swiggy's performance compare to Zomato's?
Swiggy's strategy of aggressive growth in quick commerce has led to widening losses, which contrasts with its rival Zomato, which recently reported a net profit, intensifying the market's focus on Swiggy's path to profitability.​

5. What is the investment thesis for Swiggy?
Investing in Swiggy is a high-risk, high-reward bet on its ability to dominate the on-demand convenience market, particularly quick commerce. Investors must weigh the impressive top-line growth against the significant cash burn and widening losses.