Swiggy reported strong financial results for the first quarter of FY27, helped by steady growth in its food delivery business and the fast expansion of Instamart. The company earned much higher revenue than last year and also reduced its losses, showing that its business is becoming more efficient even as it continues to invest in growth.
The company also shared important updates about Instamart’s progress towards profitability, expanded its food delivery services, and said it remains confident despite growing competition in the online food delivery market.
Swiggy Earns Higher Revenue and Cuts Losses in Q1 FY27
Swiggy’s revenue from operations increased by 37.31% year-on-year to Rs 6,812 crore in the April-June quarter of FY27. In the same quarter last year, the company had reported revenue of Rs 4,961 crore. Including other income, Swiggy’s total income reached Rs 7,023 crore, up nearly 39% from a year ago.
The company also reported lower losses. Its net loss fell by about 34% to Rs 791 crore, compared to Rs 1,197 crore in Q1 FY26. Although the loss was almost the same as the previous quarter, the year-on-year improvement shows that Swiggy is managing its costs better.
Swiggy’s EBITDA loss also reduced to Rs 650 crore, while its EBITDA margin improved to -9.54%. During the quarter, the company spent Rs 7,813 crore. The biggest expenses were buying products, delivery costs, advertising and promotions, while employee expenses were slightly lower than last year.
After the quarterly results were announced, Swiggy’s share price closed higher, taking the company’s market value to more than Rs 81,000 crore. The company is also asking shareholders to approve an increase in its foreign shareholding limit to 49.5%.
Instamart Moves Closer to Profit While Food Delivery Keeps Growing
Instamart remained one of Swiggy’s fastest-growing businesses during the quarter. Revenue from the quick commerce platform rose 53% year-on-year to Rs 1,232 crore, while Gross Order Value (GOV) increased nearly 40% to Rs 7,907 crore.
One of the biggest achievements for Instamart was reaching contribution margin break-even in May 2026. By the end of the quarter, its contribution margin improved to around -0.2%. More than 45% of its dark stores and five of its seven biggest cities are now contribution-margin positive.
To improve profits, Swiggy reduced discounts and free delivery offers on smaller orders. As a result, the company stopped serving more than four million users who were not profitable. Swiggy believes Instamart will need around 250-300 million quarterly orders before it reaches adjusted EBITDA break-even.
The company also continued to expand its network by opening 28 new dark stores during the quarter. This took the total number of stores to 1,171 across 131 cities, covering nearly 4.9 million square feet of retail space. Swiggy plans to add around 75 more stores in the next quarter.
Swiggy also introduced its “Switch to Better” campaign by partnering with more than 400 brands across different product categories to encourage customers to choose premium products.
The food delivery business also performed well. Revenue from this segment increased 23% to Rs 2,208 crore, while Gross Order Value reached Rs 9,490 crore. The business reported a segment profit of Rs 299 crore with an adjusted EBITDA margin of 3.1%.
The number of monthly transacting users grew to 1.92 crore, up nearly 18% from last year. The company said food delivery growth was slightly affected during the beginning of the quarter because some restaurants faced LPG supply issues.
Swiggy also expanded its budget food platform Toing to 50 cities and increased the reach of Bolt to more than 700 cities. Its Eat Right initiative now makes up around 15% of total food delivery orders. At the same time, the company permanently closed its Snacc category after deciding that it did not have enough long-term growth potential.
Apart from these businesses, Scootsy remained Swiggy’s biggest revenue contributor with Rs 3,195 crore in revenue and only a small loss. Dineout also delivered strong growth and remained profitable during the quarter.
Competition and Platform Fees Continue to Shape the Market
Swiggy’s latest results come at a time when India’s online food delivery market is becoming more competitive.
Customers are now paying much higher platform fees than they did a few years ago. These charges have increased to Rs 17.58 per order, including GST. Industry experts believe these fees have become an important source of income for food delivery companies and may increase further in the coming months.
Competition is also expected to grow as Flipkart prepares to launch its food delivery service in Bengaluru. The company plans to use the ONDC network along with its existing customer base and Flipkart Minutes delivery network. This strategy is expected to attract price-sensitive customers and restaurants looking for alternatives to higher commission charges.
Even with new competition, Swiggy’s management said it believes the company has a strong position because of its wide network and different business segments.
Swiggy is also one of several major online platforms that recently submitted self-declarations to the Central Consumer Protection Authority (CCPA), confirming that their apps and websites follow India’s Dark Patterns Guidelines, 2023. The company said its user interface has been reviewed to ensure it does not use misleading or unfair design practices.
With better financial performance, a stronger Instamart business and steady growth in food delivery, Swiggy is focusing on improving profitability while continuing to expand its services across the country.