Swiggy CEO Sriharsha Majety says customer focus is powering growth across businesses

Homegrown food and quick-commerce platform Swiggy Ltd reported strong momentum across its key businesses in the September quarter, highlighting growing consumer adoption and improving profitability as it nears the first anniversary of its public listing.

In a letter to shareholders, Sriharsha Majety, co-founder, managing director and group chief executive, said Swiggy’s execution muscle had strengthened markedly over the past year, driving growth in food delivery and quick-commerce even amid volatile consumption trends.

“Our efforts to increase users’ interactions with our platform through new use-cases and optimum affordability are gaining traction without sacrificing platform growth or profitability,” Majety wrote.

Food Delivery Remains a Profit Engine

Swiggy’s flagship food delivery business posted an 18.8% year-on-year growth in gross order value (GOV), despite heavy rains and muted discretionary spending in parts of India. Monthly transacting users rose 17.2%, the fastest in two years, while adjusted Ebitda margins expanded to 2.8%.

The company said affordability remained central to its model. Even with higher platform fees, the total cost of service for users — including delivery and membership charges — has stayed flat at about 5–6% of the average order value for the past three years.

Instamart Powers Ahead

Swiggy’s Instamart business, the company’s quick-commerce arm, recorded a 108% year-on-year GOV growth, clocking ₹7,022 crore in the quarter. The business, which Majety described as an “Everything store,” grew 24.2% quarter-on-quarter — its fastest pace in three years — fueled by a wider assortment, faster delivery speeds and growing user adoption of its Maxxsaver savings feature.

The quarter also saw the debut of the “Quick India Movement,” a marketing campaign positioning Instamart as a full-fledged alternative to large e-commerce players. Instamart now operates over 1,100 dark stores across 128 cities, covering 4.6 million square feet of space.

Crucially, Swiggy’s focus on efficiency appears to be paying off. Contribution losses in quick-commerce fell by nearly a third to ₹181 crore, while adjusted Ebitda margins improved by nearly 400 basis points quarter-on-quarter to –12.1%.

“Instamart’s underutilized darkstore network can support more than twice the current order base,” Majety said, adding that the company would prioritize sweating its existing infrastructure rather than aggressively expanding into smaller towns.

Dineout and Out-of-Home Segment Gain Ground

Swiggy’s dining and out-of-home consumption business — which includes its Dineout platform — grew 52% year-on-year to ₹1,118 crore in GOV, achieving a positive adjusted Ebitda margin of 0.5%.

Majety said the business was benefiting from a rise in discretionary spending and could reach 5% profitability in the medium term.

Sustainability and EV Push

In one of the most detailed sustainability updates since its IPO, Swiggy said it had expanded its electric vehicle (EV) fleet sevenfold over the past year, cutting 4,500 tonnes of carbon emissions. The company has partnered with more than 50 collaborators — including OEMs, fleet operators, and charging infrastructure providers — and aims for a 100% EV delivery fleet by 2030.

The delivery workforce, now numbering 6.9 lakh partners, grew 32% year-on-year. Swiggy is also piloting a B2B delivery model to provide partners with additional earning opportunities.

The Road Ahead

Majety closed his letter on a note of gratitude as the company approaches its first anniversary as a publicly listed entity. “Swiggy has always been about being nimble and humble — striving to become more relevant to customers by understanding their needs and reinventing itself to cater to their purchase missions,” he said.

Key Results Highlights (Q2 FY26):

Advertising and Ad Revenue

Advertising contributes over 4% of Food Delivery GOV — exceeding the entire segment’s EBITDA margin (<3%).

Take-rate and margin improvements were driven largely by higher advertising.

Quick-commerce margins also benefited from increased advertising activity.

Advertising is a core revenue stream across Swiggy’s main business verticals — Food Delivery, Quick-Commerce, Out-of-Home Consumption, and Platform Innovations.

Ad and sales promotion spending nearly doubled year-on-year to ₹1,039 crore in Q2 FY26. ₹1,039 crore in Q2 FY26 ₹1,036 crore in Q1 FY26 ₹537 crore in Q2 FY25

Platform-level performance

Average Monthly Transacting Users (MTU): 22.9 million, up 34% year-on-year (+6.1% QoQ).

Consolidated Adjusted Revenue: ₹5,911 crore, up 52.6% YoY (+11.4% QoQ).

B2C Adjusted EBITDA Margin: –3.6%, improving 111 bps QoQ (down 135 bps YoY).

Consolidated Adjusted EBITDA loss: ₹695 crore, an improvement of ₹118 crore QoQ.

Total B2C Gross Order Value (GOV): ₹16,683 crore, up 47.6% YoY (+12.7% QoQ).

Food Delivery

GOV: ₹8,542 crore, up 18.8% YoY.

MTUs: 17.2 million, up 17.2% YoY.

Adjusted EBITDA: ₹240 crore, up 25.4% QoQ.

Adjusted EBITDA Margin: 2.8% of GOV, up 125 bps YoY and 44 bps QoQ.

Contribution Margin: 7.3% of GOV, stable QoQ.

Quick-Commerce (Instamart)

GOV: ₹7,022 crore, up 107.6% YoY (+24.2% QoQ).

MTUs: 12 million, up from 11.1 million in Q1.

Average Order Value (AOV): ₹697, up ~40% YoY.

Active Dark Stores: 1,102 across 128 cities, up by 40 QoQ.

Contribution Loss: ₹181 crore, reduced by ~30% QoQ.

Contribution Margin: –2.6%, improving 202 bps QoQ.

Adjusted EBITDA Margin: –12.1%, improving 375 bps QoQ.

Adjusted EBITDA Loss: ₹849 crore, down from ₹896 crore in Q1.

Out-of-Home Consumption (Dineout and related)

GOV: ₹1,118 crore, up 52% YoY.

Adjusted EBITDA Margin: 0.5%, positive for the quarter.

Cash and Balance Sheet

Cash and Cash Equivalents: ₹4,605 crore as of September 30, 2025.

Cash burn: Reduced to ₹749 crore in Q2 (vs ₹1,341 crore in Q1).

Expected inflow: ₹2,400 crore from sale of ~12% stake in Rapido.

Board to consider fundraise of up to ₹10,000 crore through QIP on November 7, 2025.

Sustainability and Workforce

EV fleet scaled 7x YoY, cutting ~4,500 tonnes of CO₂ emissions.

Delivery partner base: 6.9 lakh, up 32% YoY.

Target of 100% EV deliveries by 2030 remains on track.