Swiggy Reports Significant Growth in Revenue and Increased Losses in Q2 FY26

Swiggy, a frontrunner in food technology, achieved a remarkable 54% annual increase in its operating revenue, reaching Rs 5,561 crore in Q2 FY26, up from Rs 3,601 crore in Q2 FY25. Despite this notable growth in revenue, Swiggy’s losses escalated by over 74% during the same quarter, as detailed in the consolidated financial reports submitted to the stock exchanges.

Key Revenue Contributors

Scootsy Logistics emerged as the significant contributor, accounting for 46% of Swiggy’s total operating revenue. Its income saw a notable 76% year-on-year growth, rising to Rs 2,560 crore in Q2 FY26 from Rs 1,453 crore a year ago. Swiggy’s food delivery segment also witnessed strong performance, increasing by 22% year-over-year to Rs 1,923 crore in Q2 FY26, which represented nearly 35% of the company’s overall revenue for the quarter.

Instamart’s Performance

Instamart, Swiggy’s quick commerce division, also displayed robust growth, with revenue doubling to Rs 980 crore in Q2 FY26 from Rs 490 crore in Q1 FY25. Swiggy’s other offerings, including Dine Out, Genie, and Swiggy Mini, contributed to a total revenue of Rs 5,620 crore in Q2 FY26.

Expense Overview

On the cost side, the procurement of fast-moving consumer goods for distribution made up 34.9% of Swiggy’s total expenditures, which rose by 69% year-on-year to Rs 2,342 crore in Q2 FY26. Delivery costs surged by 30% to Rs 1,426 crore during that quarter. Additionally, the company reported spending Rs 690 crore on employee benefits and Rs 1,039 crore on advertising, the latter experiencing a significant 94% year-on-year rise. Depreciation and amortization costs also escalated by 132% to Rs 304 crore.

Total Expense Growth

Overall, Swiggy’s total expenses soared by 56% to Rs 6,711 crore in Q2 FY26, compared to Rs 4,309 crore in Q2 FY25. This substantial increase in total expenses, largely attributed to rising advertising costs and depreciation, resulted in Swiggy’s losses widening over 74%, amounting to Rs 1,092 crore in Q2 FY26, up from Rs 626 crore in Q2 FY25.

Half-Year Performance

For the first half of FY26, Swiggy recorded total revenue amounting to Rs 10,522 crore, reflecting a 54% increase from Rs 6,824 crore in H1 FY25. However, losses during the same period expanded by 85%, reaching Rs 2,289 crore.

Recent Developments

Recently, Swiggy divested its stake in Rapido for Rs 1,968 crore to Prosus-owned MIH Investments One B.V. and Rs 431.5 crore to Setu AIF Trust and WestBridge, cumulatively netting Rs 2,399.5 crore, which translates to more than 2.5 times returns on an investment made less than four years prior.

Market Performance

Swiggy shares were trading at Rs 418 at the close of trading on Thursday, with a total market capitalization of Rs 1,04,234.44 crore (approximately $11.8 billion). In contrast, Zomato’s parent company, Eternal, reported substantial revenue growth, achieving a 2.8 times increase to Rs 13,590 crore in Q2 FY26 from Rs 4,799 crore in the previous year, primarily driven by Blinkit’s transition to an inventory-led business model. Nevertheless, the company’s profit after tax dipped to Rs 65 crore during this quarter.