Swiggy’s loss narrows marginally to Rs 626 crore in Q2
New Delhi, Dec 3 (PTI) Food and grocery delivery platform Swiggy on Tuesday reported narrowing of consolidated net loss at Rs 625.53 crore for the second quarter ended September 30 on the back of continued growth of food delivery business.
The company, which is declaring its quarterly results to stock exchanges for the first time since it went public last month, had posted a consolidated net loss of Rs 657 crore in the year-ago period.
In a regulatory filing, Swiggy said at consolidated group level, it expects to achieve “positive adjusted EBITDA by the third quarter of FY26.”
Swiggy’s revenue from operations increased to Rs 3,601.45 crore in the September quarter, from Rs 2,763.33 crore in the corresponding period last year.
Meanwhile, total expenses also grew to Rs 4,309.54 crore during the quarter under review, from Rs 3,506.63 crore in the corresponding period last fiscal.
The company also said its board has approved an investment of up to Rs 1,600 crore in the equity shares of its wholly-owned subsidiary Scootsy Logistics Pvt Ltd, in one or more tranches, by way of subscription to the rights issue. Scootsy is engaged in the business of supply chain services and distribution.
In FY24, its turnover stood at Rs 5,195.7 crore.
“Swiggy’s food delivery business continues to gain strength every quarter, and our GOV (gross order value) has grown 5.6 per cent QoQ (quarter-on-quarter) in Q2FY25. The business has ramped up profitability significantly, with adjusted EBITDA margins improving by nearly 1,000 bps over the past 2.5 years, to 1.6 per cent in Q2FY25,” Swiggy Co-founder, MD & Group CEO Sriharsha Majety said in a letter to shareholders.
The food delivery business clocked adjusted revenue of Rs 1,808 crore in Q2. On the company’s quick-commerce vertical Swiggy Instamart, he said it is at an inflection point.
The category is expanding to more geographies, consumer shopping missions, and categories in retail. The quick-commerce vertical registered adjusted revenue of Rs 513 crore in the quarter under review.
The out-of-home consumption business under ‘Swiggy Dineout’ is witnessing secular growth and improving margins, he said adding “we continue to take steps to unlock the growth potential of this category, through restaurant-based events and some innovations in the pipeline as well”.
The division clocked adjusted revenue of Rs 60 crore. Majety said overall Swiggy is building an ecosystem, not just delivering food anymore.
“We are groceries, pick-up and drop services, even toys, stationery and pet supplies, you name it, Swiggy delivers it. We’re weaving ourselves into the fabric of Indian life, becoming as indispensable as ‘chai ‘ and cricket,” he wrote in the letter.
In a management perspective presentation on when Swiggy is expected to become profitable, the company said,”At the consolidated group level, we expect to achieve positive adjusted EBITDA by Q3FY26 (October-December 2025).
The food delivery business is already profitable on an adjusted EBITDA basis and is ramping up margins steadily every quarter, it said adding the out-of-home consumption business has made rapid progress in growth and profitability trajectory since acquisition and is expected to break-even in the current fiscal.
On the other hand, the quick-commerce business is in the investment phase, amid rapid expansion of its addressable market and substantial competitive intensity in the near term, it said adding “we expect contribution break-even by Q3FY26 , and adjusted EBITDA break-even by Q2FY27.”
