Swiggy’s Q2 FY26: In a mixed financial report that highlights robust growth shadowed by widening losses, Swiggy Limited reported a consolidated net loss of Rs 1,092 crore in the second quarter of fiscal 2026 (Q2 FY26), marking a 74% increase year-on-year. This comes alongside an impressive 54% jump in revenue, which climbed to Rs 5,561 crore, reflecting the Indian food delivery giant’s aggressive expansion in both its traditional and quick-commerce businesses.
Swiggy’s Q2 FY26: Record Revenue Growth Fueled by Expansion
Swiggy’s top-line surged to Rs 5,561 crore in Q2 FY26, up from Rs 3,601 crore the previous year. This growth was driven by higher order volumes and rapid expansion of its quick commerce platform, Instamart. The food delivery arm also posted healthy performances, with gross order value increasing by nearly 19%. Monthly transacting users grew steadily, demonstrating the platform’s expanding customer base despite volatile macroeconomic conditions and heavy rainfall in parts of India.
Rising Costs and Widening Losses
However, the revenue growth came with a cost escalation that outpaced income gains. Swiggy’s total expenses rose 56% year-on-year to Rs 6,711 crore, primarily due to increased marketing and delivery costs. Advertising and sales promotion expenses surged by 94% to Rs 1,039 crore, while delivery-related charges rose 30%. Employee benefits and finance costs also climbed, reflecting the company’s investment in scale and infrastructure.
The result was a net loss that widened to Rs 1,092 crore, compared to Rs 626 crore in Q2 FY25. On an operational level, EBITDA losses expanded to Rs 798 crore, underscoring the challenges of balancing swift growth with profitability.
Strategic Moves and Market Context
Swiggy’s leadership remains committed to growth, announcing plans to raise up to Rs 10,000 crore via a qualified institutional placement (QIP) to fund expansion. The company is also reorganizing its quick commerce operations to optimize efficiency.
This financial narrative contrasts sharply with Zomato Ltd. , Swiggy’s main rival, which posted a net profit alongside substantial revenue growth in the same quarter. The divergence highlights different strategic approaches in a fiercely competitive market.
What This Means for Investors and Consumers
Swiggy’s Q2 results portray a classic growth versus profitability trade-off common in tech-driven startups. Investors are watching closely to see if continued scale will eventually translate into sustainable profits or if the widening losses signal deeper structural challenges.
For consumers, the rapid growth spells more options and faster service, driven by innovations in quick commerce and subscription models. Yet, the hefty losses raise questions about how long such aggressive spending can continue.
Takeaway:
Swiggy’s Q2 FY26 results reflect the double-edged sword of rapid expansion — impressive revenue growth and market traction paired with rising losses and cost pressures. The coming quarters will be critical as Swiggy strives to balance growth ambitions with the urgent need for profitability. For stakeholders, it underscores the importance of evaluating not just topline numbers but the sustainability of underlying business models in India’s dynamic food delivery sector.
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