Swiggy Limited reported a 36.1% year-on-year (YoY) increase in revenue to ₹7,571 crore in Q2 FY27, while its consolidated net loss narrowed 15.6% to ₹922 crore. Food Delivery delivered its highest-ever adjusted EBITDA of ₹341 crore, but Instamart's aggressive expansion pushed quick-commerce losses to ₹895 crore.
The Swiggy Q2 FY27 Results highlighted a growing difference between Food Delivery profitability and Instamart's investment requirements. Consolidated adjusted EBITDA losses widened, raising concerns over cash burn, competition and the company's path to profitability.
Table of Contents
- Swiggy Q2 FY27 Results: Key Highlights
- Swiggy Q2 FY27 Financial Performance
- Food Delivery: Record Profitability and Margins
- Toing: Swiggy's Affordable Food Delivery Strategy
- Instamart: Strong Growth but Higher Losses
- Out-of-Home Consumption Performance
- Why Did Swiggy Shares Fall After Q2 Results?
- Swiggy Management Commentary and Strategy
- What Should Swiggy Investors Track Next?
- Swiggy Q2 FY27 Results Analysis: Investor Takeaway
Swiggy announced its September-quarter results on 22 October 2026. The quarter reflected strong business growth, improving Food Delivery margins and increased spending on quick-commerce expansion.
Here are the major highlights from the Swiggy Q2 FY27 report.
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Revenue growth: Revenue from operations increased 36.1% YoY to ₹7,571 crore.
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Net loss: Consolidated net loss narrowed 15.6% YoY to ₹922 crore but increased from ₹791 crore in Q1 FY27.
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Food Delivery: Adjusted EBITDA reached a record ₹341 crore, with margins improving to 3.4% of GOV.
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Instamart: Net Order Value (NOV) grew 31.4% YoY to ₹6,594 crore, while the segment recorded an adjusted EBITDA loss of ₹895 crore.
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Dark-store expansion: Instamart added 69 stores, taking its total network to 1,240.
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Out-of-Home Consumption: The segment recorded its seventh consecutive profitable quarter.
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Market reaction: Swiggy shares fell sharply following the results as investors focused on quick-commerce losses and profitability concerns.
The central takeaway is that Swiggy's established Food Delivery business is becoming more profitable, but quick-commerce expansion continues to weigh on consolidated earnings.
Swiggy's consolidated revenue grew substantially during the July-September 2026 quarter, supported by growth across Food Delivery, Instamart and Out-of-Home Consumption.
However, despite reporting higher revenue and a narrower year-on-year net loss, the company continued to face pressure on operating profitability.
Swiggy Q2 FY27 Financial Results
The following table highlights Swiggy's key financial figures for the quarter ended 30 September 2026.
| Financial metric |
Q2 FY27 |
| Revenue from operations |
₹7,571 cr |
| Adjusted revenue |
₹7,909 cr |
| Consolidated net loss |
₹922 cr |
| Consolidated adjusted EBITDA loss |
₹760 cr |
| Total expenses |
₹8,703 cr |
Source: Swiggy Q2 FY27 results and company disclosures.
Swiggy reported revenue from operations of ₹7,571 crore and adjusted revenue of ₹7,909 crore during Q2 FY27. However, total expenses stood at ₹8,703 crore, exceeding operating revenue.
The company recorded a consolidated net loss of ₹922 crore, while its adjusted EBITDA loss stood at ₹760 crore. These figures highlight the continued pressure on profitability despite strong business growth.
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To assess how the market has responded to Swiggy's Q2 FY27 results, check the Swiggy share price along with its stock charts and key valuation indicators.
Swiggy Q2 FY26 Financial Results: Year-on-Year Comparison
For a year-on-year comparison, the following table presents Swiggy's financial performance in Q2 FY26.
| Financial metric |
Q2 FY26 |
| Revenue from operations |
₹5,561 cr |
| Adjusted revenue |
Not specified |
| Consolidated net loss |
₹1,092 cr |
| Consolidated adjusted EBITDA loss |
₹695 cr |
| Total expenses |
₹6,711 cr |
Compared with Q2 FY26, revenue from operations increased 36.1% YoY, while adjusted revenue grew 33.8%. Total expenses rose 29.7% YoY, reflecting higher spending as the company expanded its operations.
Swiggy's consolidated net loss narrowed 15.6% from ₹1,092 crore to ₹922 crore. However, its adjusted EBITDA loss widened by ₹65 crore, from ₹695 crore to ₹760 crore.
The key takeaway: Swiggy delivered strong revenue growth and reduced its reported net loss compared with the previous year, but widening adjusted EBITDA losses indicate that operating profitability remains under pressure.
Why Did Swiggy's Net Loss Increase Sequentially?
Swiggy reported a consolidated net loss of ₹922 crore in Q2 FY27, compared with ₹791 crore in Q1 FY27.
This reflects two different trends:
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Year-on-year improvement: Net loss narrowed by ₹170 crore from ₹1,092 crore in Q2 FY26.
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Quarter-on-quarter deterioration: Net loss widened by ₹131 crore compared with Q1 FY27.
The consolidated adjusted EBITDA loss also widened to ₹760 crore, compared with ₹695 crore in Q2 FY26 and ₹651 crore in Q1 FY27.
This indicates that although the company improved its reported net loss compared with the previous year, its adjusted operating losses increased.
The two measures are not interchangeable. Consolidated net loss includes accounting items beyond adjusted EBITDA, so an improvement in one does not necessarily mean an improvement in the other.
For investors analysing Swiggy Q2 earnings FY27, this distinction is important because revenue expansion alone has not yet translated into sustained consolidated operating profitability.
Food Delivery emerged as the strongest-performing segment in Swiggy's September 2026 quarter.
The business reported higher order value, an expanding customer base and record adjusted EBITDA, strengthening its position as the company's main profit-generating segment.
Swiggy Food Delivery Q2 FY27 Performance
Swiggy's Food Delivery Gross Order Value (GOV) reached ₹10,054 crore in Q2 FY27, supported by an expanding customer base and improving profitability.
The following table highlights the segment's key operating and financial indicators.
| Food Delivery metric |
Q2 FY27 |
| Gross Order Value |
₹10,054 cr |
| Monthly Transacting Users |
19.8 million |
| Adjusted EBITDA |
₹341 cr |
| Adjusted EBITDA margin |
3.4% of GOV |
Source: Swiggy Q2 FY27 company results.
Swiggy's Food Delivery business achieved its highest-ever adjusted EBITDA of ₹341 crore, with a margin of 3.4% of GOV. This reflects improving profitability alongside continued customer and order-value growth.
Swiggy Food Delivery Growth: Year-on-Year Comparison
To understand the segment's growth momentum, the following table shows how its key operating and profitability metrics changed compared with Q2 FY26.
| Food Delivery metric |
YoY Growth / Change |
| Gross Order Value |
+17.7% |
| Monthly Transacting Users |
+15.2% |
| Adjusted EBITDA |
+₹101 cr |
| Adjusted EBITDA margin |
+58 bps |
Source: Swiggy Q2 FY27 company results.
Food Delivery GOV increased 17.7% YoY and 5.9% QoQ, while monthly transacting users grew 15.2% YoY.
Adjusted EBITDA increased by ₹101 crore compared with the previous year, while the margin improved by 58 basis points to 3.4% of GOV.
This combination of order-value growth and margin expansion shows that Swiggy's Food Delivery business improved profitability while continuing to grow.
Food Delivery Growth Accelerated in September 2026
Swiggy reported that Food Delivery GOV growth exceeded 20% YoY during September 2026, compared with 17.7% growth for the full quarter.
This suggests improving growth momentum towards the end of Q2 FY27.
However, the margin of 3.4% remains relatively modest, meaning continued profitability improvement will depend on maintaining growth while controlling delivery, customer-acquisition and promotional costs.
What it means for investors: Food Delivery is becoming a more meaningful profit contributor. The next test is whether Swiggy can sustain higher growth and gradually expand margins without relying on aggressive discounting.
Swiggy is also developing Toing, its standalone platform for affordable meals, to attract price-sensitive customers and expand the food-delivery market.
During Q2 FY27, Toing operated across more than 50 cities.
According to management, two out of every three new Toing users were new to the food-delivery category, indicating that the platform may be attracting consumers who were previously outside the market.
Can Toing Accelerate Swiggy's Food Delivery Growth?
Swiggy's management believes that Toing can help the combined Swiggy and Toing Food Delivery marketplace achieve growth of 25-30%.
This is a management ambition rather than a realised growth rate.
For comparison, Swiggy's core Food Delivery GOV grew 17.7% YoY during Q2 FY27.
Toing's strategy focuses on three areas:
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Affordable meals: Attracting price-sensitive users through lower-ticket food options.
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New customer acquisition: Bringing consumers into the food-delivery category rather than relying only on existing users.
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Restaurant economics: Helping restaurant partners generate additional order volumes and benefit from higher operating scale.
The opportunity is significant because Toing could expand Swiggy's addressable market without depending entirely on increasing spending by existing customers.
However, affordability-focused offerings also need sustainable economics.
Investors should monitor Toing's customer retention, order frequency, restaurant partner profitability and its impact on the wider Food Delivery business.
Instamart was Swiggy's biggest area of investment and financial pressure in Q2 FY27.
The quick-commerce segment reported faster sequential growth in order value, but aggressive dark-store expansion and increased spending kept adjusted EBITDA losses elevated.
Swiggy Instamart Q2 FY27 Performance
Instamart's Net Order Value increased 31.4% YoY and 13.4% QoQ to ₹6,594 crore.
Gross Order Value grew 16.7% sequentially to ₹9,230 crore.
| Instamart metric |
Q2 FY27 |
| Net Order Value |
₹6,594 cr |
| Gross Order Value |
₹9,230 cr |
| Contribution margin |
-1.0% of GOV |
| Adjusted EBITDA margin |
-9.7% of GOV |
| Adjusted EBITDA loss |
₹895 cr |
| Dark stores |
1,240 |
| Total store area |
5.2 million sq ft |
Instamart Growth and Changes
The following table highlights the key changes in Instamart's operating and financial metrics.
| Instamart metric |
Growth / Change |
| Net Order Value |
+31.4% YoY, +13.4% QoQ |
| Gross Order Value |
+16.7% QoQ |
| Contribution margin |
+157 bps YoY |
| Adjusted EBITDA margin |
-9.8% in Q1 FY27 |
| Adjusted EBITDA loss |
Remained elevated |
| Dark stores |
69 stores added |
| Total store area |
+13.3% YoY |
Instamart's contribution margin improved by 157 basis points YoY to -1.0% of GOV.
However, it deteriorated by 82 basis points compared with the previous quarter, reflecting higher near-term investment requirements.
The adjusted EBITDA margin improved marginally from -9.8% in Q1 FY27 to -9.7% in Q2 FY27.
Despite this slight percentage improvement, the absolute adjusted EBITDA loss rose to ₹895 crore.
Why Did Instamart's Losses Widen?
The biggest factor was Swiggy's decision to accelerate its quick-commerce expansion.
The company added 69 dark stores during Q2 FY27, matching the cumulative number of stores added over the preceding three quarters.
This brought the network to 1,240 dark stores covering approximately 5.2 million square feet.
The accelerated expansion shows that Swiggy is prioritising network density, assortment and delivery capability.
However, new dark stores require investment before they can establish a mature order base and contribute sustainably to profitability.
This creates a near-term trade-off:
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Growth opportunity: A larger network can increase customer reach, product availability and delivery capacity.
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Profitability pressure: New locations can raise infrastructure, operating and customer-acquisition costs.
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Execution risk: If stores take longer to mature, quarterly losses may remain elevated despite growing order volumes.
The important concern is not simply the ₹895 crore adjusted EBITDA loss, but whether additional store capacity can eventually generate stronger contribution margins.
Why Instamart's Contribution Margin Matters
Contribution margin helps assess the profitability of the business after relevant variable costs but before all operating expenses.
Instamart's contribution margin of -1.0% indicates that the business remained contribution-negative during Q2 FY27.
Although it has improved substantially compared with the previous year, the sequential deterioration suggests renewed investment pressure.
What it means for investors: Instamart's revenue-generating capacity is expanding, but the company must demonstrate that growth can translate into improving unit economics. Store maturity, customer retention and lower operating losses will be essential indicators.
Swiggy's Out-of-Home Consumption business, which includes Dineout and related offerings, continued to grow while remaining profitable on an adjusted EBITDA basis.
During Q2 FY27, the segment reported:
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Gross Order Value: ₹1,508 crore.
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GOV growth: 34.9% YoY.
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Adjusted EBITDA margin: 0.5% of GOV.
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Profitability: Seventh consecutive profitable quarter.
Although Out-of-Home Consumption is considerably smaller than Food Delivery and Instamart, it provides another source of customer engagement.
The segment also supports Swiggy's broader dining ecosystem and its Swiggy One membership proposition.
Its continued profitability is positive, but its contribution remains too small to offset Instamart's substantial adjusted EBITDA losses at the group level.
Swiggy shares declined sharply following the announcement of its Q2 FY27 results.
On 23 October 2026, the stock initially faced selling pressure of around 10%, with subsequent intraday reports indicating a decline of approximately 15%.
The negative reaction came despite 36.1% revenue growth and an improvement in Food Delivery profitability.
Investors focused primarily on the widening operating losses, Instamart's expansion expenses and uncertainty around the timeline for consolidated profitability.
Swiggy's EBITDA Loss Missed Market Expectations
The company's consolidated adjusted EBITDA loss increased to ₹760 crore from ₹651 crore in the preceding quarter.
Separately, a reported EBITDA loss of approximately ₹770 crore was around 41% wider than Nirmal Bang's estimate of ₹547 crore and approximately 33% worse than the market consensus, according to Business Standard.
The ₹770 crore reported EBITDA measure should be distinguished from the ₹760 crore consolidated adjusted EBITDA loss.
The earnings disappointment was associated with two major factors:
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Higher Instamart investment: Expansion spending and competitive pressures continued to weigh on quick-commerce profitability.
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Platform Innovations losses: Increased losses from newer initiatives added to consolidated profitability concerns.
Following the results, several brokerages reduced their target prices, highlighting uncertainty around quick-commerce execution, competitive intensity and the path to profitability.
Why Revenue Growth Was Not Enough
Swiggy's financial performance demonstrated that strong revenue growth does not automatically lead to profitability.
Food Delivery delivered ₹341 crore in adjusted EBITDA, but Instamart recorded an adjusted EBITDA loss of ₹895 crore.
This imbalance explains why improving profitability in the core business was insufficient to prevent a widening consolidated adjusted EBITDA loss.
For investors, the critical issue is how efficiently Swiggy can convert growing order value into sustainable earnings across its businesses.
Swiggy's management emphasised profitable growth in Food Delivery and continued differentiation in quick commerce.
Sriharsha Majety, Managing Director and Group CEO of Swiggy, highlighted the company's record Food Delivery profitability and Toing's potential to attract new consumers.
He also stated that Instamart delivered the acceleration in quick-commerce growth that management had previously indicated.
Instamart's Differentiation Strategy
Management believes that speed and product selection are becoming standard requirements in quick commerce.
Instead of focusing only on adding more products, Swiggy intends to improve how relevant products are selected and presented to customers.
This approach positions assortment quality, customer experience and differentiation as important competitive factors.
The strategy matters because quick-commerce businesses compete across several areas, including:
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Delivery speed and product availability.
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Discounts and customer acquisition.
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Assortment relevance and customer retention.
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Store-level operating efficiency.
A differentiated proposition could help Swiggy strengthen customer relationships, but its financial effectiveness will depend on improving unit economics.
Indian-Owned and Controlled Company Status
Management also highlighted that Swiggy had obtained the necessary approvals to qualify as an Indian-owned and controlled company.
This is an important milestone for Instamart's ownership and operating transition.
Investors should monitor how the transition is implemented, whether it creates operational benefits and how it affects the quick-commerce business's regulatory positioning.
The Swiggy Q2 FY27 Results Analysis highlights several indicators that will determine whether the company can balance growth and profitability in the coming quarters.
1. Instamart Contribution Margin
Instamart reported a contribution margin of -1.0% of GOV, compared with a stronger sequential position in Q1 FY27.
Investors should monitor whether the margin moves towards zero and eventually becomes consistently positive.
2. Dark-Store Expansion and Profitability
Swiggy added 69 dark stores during Q2 FY27, increasing its operational footprint substantially.
The key consideration is whether these stores mature quickly enough to improve operating efficiency without requiring continuously elevated investment.
3. Food Delivery EBITDA Margin
Food Delivery's adjusted EBITDA margin reached a record 3.4% of GOV.
Investors should track whether this margin can improve further while GOV growth and customer activity remain strong.
4. Toing's Customer Retention and Unit Economics
Toing's affordable-meals model could support customer acquisition and wider market penetration.
However, repeat orders, sustainable restaurant economics and incremental customer growth will be more important than user additions alone.
5. Quick-Commerce Competition
Price competition, discounts, product availability and delivery speed will continue to influence Instamart's operating performance.
Investors should evaluate whether Swiggy can grow without relying on increasingly expensive customer acquisition.
6. Cash Burn and Funding Requirements
Instamart's ₹895 crore adjusted EBITDA loss highlights the scale of investment associated with quick-commerce expansion.
However, adjusted EBITDA loss is not the same as actual cash burn.
Investors should compare future cash-flow statements, cash balances, capital expenditure and funding requirements with the operating losses reported by Instamart.
7. Ownership and Regulatory Transition
Swiggy's progress towards Indian-owned and controlled company status remains relevant to its operational plans.
The implementation of this transition and its financial implications will be important developments to track.
Swiggy's Q2 FY27 results presented a mixed picture. Revenue increased 36.1% YoY to ₹7,571 crore, while consolidated net loss narrowed to ₹922 crore. Food Delivery delivered record adjusted EBITDA of ₹341 crore and improved its margin to 3.4% of GOV.
However, Instamart's ₹895 crore adjusted EBITDA loss and accelerated dark-store expansion weighed heavily on overall profitability. Consolidated adjusted EBITDA losses widened both year-on-year and sequentially, showing that the company remains in an investment-intensive phase.
For long-term investors, the positive case depends on Food Delivery continuing to expand earnings while Instamart converts network growth into better contribution margins.
The key downside risk is that intense quick-commerce competition and continued investment delay consolidated profitability.
Ultimately, Swiggy's next phase will be judged not only by how quickly its businesses grow, but by how efficiently that growth translates into sustainable profits.
Frequently Asked Questions
1. What are the key highlights of Swiggy Q2 FY27 results?
Swiggy reported revenue from operations of ₹7,571 crore in Q2 FY27, up 36.1% YoY. Its consolidated net loss narrowed 15.6% to ₹922 crore. Food Delivery adjusted EBITDA reached a record ₹341 crore, while Instamart reported an adjusted EBITDA loss of ₹895 crore.
2. Did Swiggy report a net profit in Q2 FY27?
No. Swiggy did not report a consolidated net profit in Q2 FY27. It recorded a net loss of ₹922 crore, compared with ₹1,092 crore in Q2 FY26 and ₹791 crore in Q1 FY27. The annual loss narrowed, but the quarterly loss widened sequentially.
3. Why did Swiggy shares fall after Q2 FY27 results?
Swiggy shares declined because consolidated adjusted EBITDA losses widened to ₹760 crore, while Instamart's aggressive expansion resulted in a ₹895 crore segment loss. Investors were also concerned about quick-commerce competition, higher investment requirements and the timeline for profitability.
4. How did Swiggy Instamart perform in Q2 FY27?
Instamart's Net Order Value grew 31.4% YoY to ₹6,594 crore, while Gross Order Value reached ₹9,230 crore. The company added 69 dark stores, taking its total to 1,240. However, contribution margin remained negative at -1.0% of GOV, and adjusted EBITDA loss stood at ₹895 crore.
5. What should investors monitor after Swiggy Q2 FY27 results?
Investors should focus on Instamart's contribution margin, dark-store maturity, Food Delivery EBITDA margin, Toing's customer retention, quick-commerce competition and cash-flow performance. These indicators will help assess whether Swiggy can translate its revenue growth into sustainable consolidated profitability.