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Swiggy reported a consolidated net loss of INR 791 crore for the first quarter of FY27, improving from the corresponding period last year as higher revenue helped reduce losses. The company recorded strong growth in revenue from operations despite an increase in overall expenses driven by advertising, sales promotion and delivery costs. Swiggy also said its quick commerce business, Instamart, achieved its targeted contribution break-even during the quarter and is expected to benefit further from a proposed Indian-Owned and Controlled Company (IOCC) structure, subject to shareholder approval at its upcoming annual general meeting.
Swiggy reported a consolidated net loss of INR 791 crore for the first quarter ended June 30, 2026, reflecting an improvement over the INR 1,197 crore loss recorded in the corresponding quarter of the previous financial year. The reduction in losses came on the back of strong growth in operating revenue, according to the company's regulatory filing.
Revenue from operations during the quarter increased to INR 6,812 crore, compared with INR 4,961 crore in the same period a year ago, indicating continued growth across the company's food delivery and quick commerce businesses.
At the same time, total expenses rose to INR 7,813 crore from INR 6,244 crore in the year-ago period. The increase was mainly attributed to higher spending on advertising and sales promotion, delivery-related expenses and other operational costs as the company continued investing in business expansion.
In a letter to shareholders released alongside the quarterly results, Swiggy Co-founder, Managing Director and Group Chief Executive Officer Sriharsha Majety said Instamart achieved its targeted contribution break-even in May 2026, with the business recording an overall contribution of negative 0.2 per cent of Gross Order Value (GOV) during the quarter. He also said the segment's adjusted EBITDA loss narrowed to INR 778 crore, reflecting improving operating efficiency.
Majety further informed shareholders that Swiggy has proposed transitioning Instamart into an Indian-Owned and Controlled Company (IOCC). Under this structure, Instamart would be able to directly own and sell inventory while continuing to operate its marketplace business. He said the change has the potential to improve the business' contribution margin by around 80 basis points and provide greater operational flexibility and control over day-to-day activities.
The proposal will be placed before shareholders for approval at the company's 13th Annual General Meeting scheduled for August 18, 2026. Since the meeting is yet to take place, the company said the approval process remains pending.
Majety also stated that, if approved, the transition is expected to be completed over the next two to four quarters. He added that Swiggy does not expect any disruption to customer experience or supply partnerships during the transition period, noting that operational preparations are already underway to ensure a smooth implementation once all required approvals are received.
Swiggy has been focusing on improving profitability while continuing to expand its quick commerce business, which has become a key growth driver amid rising competition in the segment. The company has continued investing in expanding Instamart's network, improving delivery efficiency and strengthening customer engagement, while balancing growth with a gradual reduction in losses.
Source PTI
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