Swiggy Q2 FY27 net loss widens to ₹922 crore on Instamart expansion costs
Synopsis
Swiggy's Q2 FY27 loss widened sequentially to ₹922 crore, almost entirely driven by Instamart's aggressive dark store push — now at 1,240 stores — which clocked a ₹895 crore loss alone. The silver lining: food delivery hit its highest-ever EBITDA margin of 3.4%, and revenues grew 36% year-on-year. The race to quick-commerce dominance is proving expensive, and the next few quarters will test whether Instamart's scale can eventually justify the burn.
Key Takeaways
Swiggy posted a consolidated net loss of ₹922 crore in Q2 FY27 , widening from ₹791 crore in Q1 FY27 but narrowing from ₹1,092 crore in Q2 FY26.
Revenue from operations rose 36.1 per cent year-on-year to ₹7,571 crore ; total expenses climbed to ₹8,703 crore .
Food delivery hit its highest-ever adjusted EBITDA margin of 3.4 per cent of GOV , with EBITDA of ₹341 crore .
Instamart added 69 dark stores , expanding its network to 1,240 stores , but posted a loss of ₹895 crore for the quarter.
Out-of-home consumption recorded its seventh consecutive profitable quarter with GOV growth of 34.9 per cent YoY .
Swiggy reported a consolidated net loss of ₹922 crore for the quarter ended September 2026 (Q2 FY27), widening sequentially from ₹791 crore in Q1 FY27, according to its stock exchange filing. However, the food delivery and quick-commerce platform's losses narrowed sharply compared to ₹1,092 crore in the same quarter last year, signalling a gradual year-on-year improvement even as near-term costs remain elevated.
Revenue Growth Outpaced by Rising Expenses
Revenue from operations surged 36.1 per cent year-on-year to ₹7,571 crore, up from ₹5,620 crore in Q2 FY26, driven by momentum across food delivery, quick commerce, and out-of-home consumption segments. Despite this robust topline expansion, total expenses climbed to ₹8,703 crore from ₹6,711 crore a year earlier, underscoring the cost pressure from aggressive network investments — particularly in quick commerce.
Food Delivery Hits Record Profitability
Swiggy's core food delivery business delivered its strongest profitability performance to date during the quarter. Gross order value (GOV) for the segment rose 17.7 per cent year-on-year to ₹10,054 crore, while adjusted EBITDA improved by ₹101 crore to reach ₹341 crore. The adjusted EBITDA margin stood at 3.4 per cent of GOV — the segment's highest-ever margin. This marks a meaningful milestone as Swiggy attempts to demonstrate that its older, more established business can subsidise the growth phase of newer verticals.
Out-of-Home Consumption Logs Seventh Straight Profitable Quarter
The out-of-home consumption segment maintained its profitability streak, recording its seventh consecutive quarter in positive territory. GOV grew 34.9 per cent year-on-year to ₹1,508 crore, with an adjusted EBITDA margin of 0.5 per cent of GOV. The consistent performance in this segment provides a secondary pillar of profitability alongside the food delivery vertical.
Instamart Expansion Weighs on Bottom Line
Quick-commerce arm Instamart continued its aggressive footprint push during the quarter, adding 69 dark stores to take its total network to 1,240 stores nationwide. Net order value (NOV) rose 31.4 per cent year-on-year and 13.4 per cent sequentially to ₹6,954 crore, reflecting strong consumer demand. However, the expansion came at a cost: Instamart reported a loss of ₹895 crore for the quarter. Its contribution margin improved 157 basis points year-on-year to minus 1 per cent of GOV, though it declined 82 basis points sequentially. The segment's adjusted EBITDA margin improved marginally to minus 9.7 per cent from minus 9.8 per cent in the prior quarter — a directionally positive but still deeply loss-making position.
What to Watch
This comes amid an intensely competitive quick-commerce landscape, where rival Zomato-backed Blinkit and Zepto are similarly investing in dark store density. The sequential widening of Swiggy's overall loss reflects the classic growth-versus-profitability trade-off that investors will scrutinise closely in the quarters ahead. With food delivery now at record margins and out-of-home consumption reliably profitable, the path to group-level breakeven hinges almost entirely on how quickly Instamart can improve its unit economics as its store network matures.
Point of View
The group's profitability trajectory depends on whether 1,240 dark stores eventually reach the unit economics that justify the ₹895 crore quarterly burn. The quick-commerce sector is in a costly land-grab phase, and Swiggy is playing it as aggressively as its rivals. Investors would do well to track contribution margin trends at Instamart quarter by quarter — that number, not the headline loss, is the real signal of whether this expansion will pay off.
NationPress
22 Oct 2026
Frequently Asked Questions
What was Swiggy's net loss in Q2 FY27?
Swiggy reported a consolidated net loss of ₹922 crore for Q2 FY27 (quarter ended September 2026), widening from ₹791 crore in the preceding quarter but narrower than the ₹1,092 crore loss recorded in Q2 FY26.
Why did Swiggy's losses widen sequentially in Q2 FY27?
The sequential widening was primarily driven by Instamart's aggressive dark store expansion, which added 69 stores in the quarter and pushed the quick-commerce arm's standalone loss to ₹895 crore. Total company expenses rose to ₹8,703 crore against revenue of ₹7,571 crore.
How did Swiggy's food delivery business perform in Q2 FY27?
Swiggy's food delivery segment reported its highest-ever adjusted EBITDA margin of 3.4 per cent of GOV, with absolute EBITDA reaching ₹341 crore. Gross order value grew 17.7 per cent year-on-year to ₹10,054 crore.
How large is Instamart's dark store network now?
As of Q2 FY27, Instamart operates 1,240 dark stores nationwide after adding 69 stores during the quarter. Net order value for the segment grew 31.4 per cent year-on-year to ₹6,954 crore, though the segment remained deeply loss-making.
How does Swiggy's revenue growth compare year-on-year?
Swiggy's revenue from operations grew 36.1 per cent year-on-year to ₹7,571 crore in Q2 FY27, up from ₹5,620 crore in Q2 FY26, driven by all three major segments — food delivery, quick commerce, and out-of-home consumption.
