Swiggy’s shares took a hit during early trading hours on the Bombay Stock Exchange (BSE) today, falling as much as 4.2% to INR 386.25 after the company reported its financial results for the June quarter (Q1 FY26). The dip reflects investor concerns over widening losses, despite strong growth in revenue.
By 1:20 PM, the stock recovered slightly to trade at INR 395.75, still down 2% from the previous close. At this price point, Swiggy’s market capitalisation stood at INR 98,686.08 crore (approximately $11.2 billion). During this period, about 25 lakh shares had changed hands, indicating heightened market activity following the earnings announcement.
Swiggy reported a net loss of INR 1,197 crore for Q1 FY26, nearly double compared to the same period last year. The losses were primarily attributed to the company’s continued investment in expanding its quick commerce vertical, Instamart. While these aggressive investments are aimed at capturing a larger market share in the rapidly growing quick commerce space, they have significantly impacted the company’s bottom line.
Despite the growing losses, Swiggy’s revenue told a different story. The company’s operating revenue surged 54% year-on-year (YoY) to INR 4,961 crore in the June quarter. This jump highlights strong demand across its core food delivery business as well as other verticals. Notably, Instamart played a major role in driving top-line growth, underscoring the increasing consumer reliance on quick commerce platforms for daily essentials.
Instamart, Swiggy’s quick commerce arm, continued to be both a major growth driver and a key contributor to its overall losses. Instamart’s operating revenue skyrocketed by 115% YoY to INR 806 crore, showcasing the segment’s rapid expansion. However, the unit’s net loss also widened substantially, almost tripling to INR 797 crore compared to the same quarter last year. The high burn rate reflects heavy spending on warehousing, logistics, and customer acquisition in the competitive quick commerce landscape.
Swiggy’s overall business outlook appears mixed. While it is successfully growing its revenue base and expanding its reach across the country, its mounting losses—especially from the Instamart vertical—are raising red flags among investors. Analysts believe the company must strike a balance between growth and profitability to sustain investor confidence as competition intensifies from players like Zepto, Blinkit, and BigBasket.
Looking ahead, Swiggy may need to reassess its strategy for quick commerce or optimize operational efficiencies to reduce cash burn. As India’s digital economy matures and consumer behavior continues to evolve, striking the right balance between scale and sustainability will be crucial for Swiggy’s long-term success.
In summary, while Swiggy’s Q1 FY26 results reflect robust revenue growth, the steep rise in losses—particularly from Instamart—has dampened investor sentiment, resulting in a noticeable dip in share price. The coming quarters will be critical in determining whether Swiggy can turn around its profitability while maintaining its growth trajectory.
Leave a comment