Swiggy Q2 Results: Strong Growth in Key Segments Despite Losses

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Stocks in News | Swiggy Ltd, India’s leading food delivery and quick-commerce platform, has announced its financial results for the September quarter. This marks the company's first quarterly report since its public debut on November 13, 2024. While the company reported a net loss, the results revealed notable growth, particularly in its Instamart business.

Below is a comprehensive overview of Swiggy’s Q2 financial performance.

Swiggy Q2 Consolidated Financial Highlights

  • Net Loss: Swiggy reported a net loss of Rs 625.5 crore for the September quarter, an improvement from the Rs 657 crore loss during the same period last year. However, it represents a slight increase compared to the Rs 611 crore loss in Q1FY25.
  • Revenue: The company’s revenue for Q2 stood at Rs 3,601 crore, reflecting a 29% YoY growth from Rs 2,763 crore in Q2FY24, and a sequential rise of 10.5% from Rs 3,222 crore in Q1FY25.
  • EBITDA Loss: Swiggy’s EBITDA loss for the quarter was Rs 555 crore, showing marginal improvement over Rs 544 crore in Q1FY25 and Rs 624 crore in Q2FY24.

Performance Breakdown by Business Segment

1. Food Delivery Business: Stable Growth

  • Revenue: The food delivery segment recorded a 22% YoY revenue increase, reaching Rs 1,577 crore, with a 4% sequential growth from Q1FY25.
  • EBIT: The food delivery business reported an EBIT profit of Rs 122 crore, marking a significant turnaround from the Rs 44 crore loss in Q2FY24 and an improvement over the Rs 67 crore profit in Q1FY25.

2. Instamart: Impressive Growth, Yet Losses Persist

  • Revenue: Instamart, Swiggy’s quick-commerce arm, recorded a remarkable 136% YoY revenue growth to reach Rs 490 crore. 
  • EBIT: Despite strong growth, Instamart posted an EBIT loss of Rs 317 crore, an improvement from the Rs 320 crore loss last year, though it widened compared to the Rs 280 crore loss in Q1FY25.

3. Out-of-Home Consumption: Positive Trends

Swiggy’s Out-of-Home Consumption segment, particularly Swiggy Dineout, continues to show strong growth. The integration of Dineout into Swiggy’s unified app has proven successful, boasting nearly 35,000 active and 65,000 listed restaurants. 

With a Gross Order Value (GOV) growth of 46% in Q2FY25, the business is on track to break even with adjusted EBITDA margins at -1.3%. 

For a detailed analysis of Swiggy’s Q2 financial performance, click here.

Swiggy’s Profitability Roadmap: Timeline to Break-even

In a letter to shareholders, Swiggy outlined its roadmap towards profitability:

  • Food Delivery: This segment is already profitable on an adjusted EBITDA basis, with margins steadily improving each quarter.
  • Out-of-Home Consumption: Swiggy expects this segment to break even within the current fiscal year.
  • Quick-Commerce: Instamart remains in the investment phase, with rapid market expansion and increased competition. However, three of the top seven cities are already profitable, and Swiggy expects contribution break-even by Q3FY26 and adjusted EBITDA break-even by Q2FY27.
  • Consolidated Level: Swiggy projects achieving positive adjusted EBITDA at the consolidated group level by Q3FY26.

Conclusion: Swiggy’s Growth Outlook and Market Position

Swiggy is on a solid growth trajectory, with positive momentum across its key business segments. While it continues to report a net loss, the company is diversifying its revenue streams effectively. Its Food Delivery business is already profitable, and Instamart, despite being in an investment phase, shows substantial growth potential with a 136% YoY revenue increase.

Swiggy’s unified app model is a strategic differentiator, offering consumers a comprehensive solution for all food-related needs — from ordering in and dining out to home cooking. Its journey toward profitability is supported by the strong growth prospects of both the food delivery and quick-commerce markets. These markets are expected to grow at compound annual growth rates (CAGR) of 17-22% and 60-80%, respectively, from CY2023 to CY2028. With the second largest market share in both segments, Swiggy is well-positioned to capitalize on these growth opportunities.

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