Swiggy’s Quarterly Results at a Glance
Food delivery and quick commerce company Swiggy reported its results for the September quarter. Its overall net loss narrowed to 9.22 billion rupees, down from 10.92 billion rupees a year earlier. That is an improvement, but it still missed analysts’ average estimate of 7.92 billion rupees, according to LSEG data.
The company’s revenue from operations rose 36.1% to 75.71 billion rupees. This beat the analysts’ estimate of 72.81 billion rupees.
Instamart: Growing Fast, Losing More
Instamart, Swiggy’s quick commerce arm that delivers groceries and other items in minutes, is growing quickly but spending heavily to do so. Its adjusted core loss widened to 8.95 billion rupees from 8.49 billion rupees a year earlier. The company said the money went into pricing, attracting customers and expanding its warehouses.
On the positive side, Instamart’s net order value rose 34.8% year-on-year to 65.94 billion rupees. But its contribution margin worsened to negative 1% of gross order value, compared with negative 0.2% in the previous quarter. In simple terms, the business is losing more on each order than before.
Swiggy believes the worst may be over. It expects Instamart’s adjusted core losses to have peaked in the September quarter. For the December quarter, it forecasts an improvement of about 100 basis points (1 percentage point) in its adjusted core margin compared with the previous quarter.
The Dark Store Race With Blinkit
Both Swiggy and its rival Eternal have been adding dark stores. These are small warehouses used only to pack and send out online orders, and they help deliver products quickly. Even as both companies spend heavily on expansion and face tough competition, investors are now paying closer attention to profits.
Instamart added 69 net dark stores in the September quarter, taking its total to 1,240. Eternal’s Blinkit added 308 stores in the same period and now has 2,751. That means Blinkit has more than double the number of Instamart’s stores, which gives it a big edge in reach.
Food Delivery Shines
Swiggy’s food delivery business had a strong quarter. Its adjusted core profit jumped 42.1% to a record 3.41 billion rupees. The company credited higher advertising revenue and better delivery efficiency.
Swiggy also kept its yearly forecast for food delivery gross order value growth at 18% to 20%. This figure does not include Toing, its affordable meals platform.
Why This Matters
Quick commerce is one of the hottest businesses in India, with companies racing to deliver everything from milk to phone chargers in minutes. But growth comes at a cost. Opening new stores, offering discounts and winning customers all drain cash.
Swiggy’s results show both sides of this race. Its food delivery business is making record profits, while Instamart is still burning money to compete.
