Swiggy has started the new financial year on a stronger note, with revenue rising sharply and losses narrowing in the first quarter of FY27. The company’s latest earnings show that its efforts to improve operating efficiency are beginning to make a difference, even as it continues to spend heavily on expanding its quick-commerce business.
For the quarter ended June 30, 2026, Swiggy reported a consolidated net loss of ₹791 crore, nearly 34% lower than the ₹1,197 crore loss recorded in the same quarter last year. The loss was also slightly lower than the ₹800 crore reported in the March quarter.
Revenue from operations increased 37.31% year-on-year to ₹6,812 crore from ₹4,961 crore in Q1 FY26. On a sequential basis, revenue was up 6.72% from ₹6,383 crore in the March quarter. Total revenue, including other income, stood at ₹7,023 crore, up 39.12% from ₹5,048 crore a year earlier.
The improvement is particularly significant because Swiggy is still investing aggressively in quick commerce, where competition remains intense. Yet, the company managed to grow revenue faster than expenses. Total expenses stood at ₹7,813 crore in Q1 FY27, compared with ₹6,244 crore a year earlier and ₹7,448 crore in the previous quarter.
That has helped improve the company’s operating performance. EBITDA loss narrowed to ₹650 crore from ₹954 crore in Q1 FY26. The EBITDA margin improved to negative 9.54%, compared with negative 19.23% a year earlier. The numbers suggest that Swiggy is getting more operating leverage as its businesses scale.
The biggest positive development came from Instamart, Swiggy’s quick-commerce business. The company said the vertical achieved contribution breakeven during the quarter, an important milestone in its effort to make the business financially sustainable.
Instamart’s Gross Order Value, or GOV, rose 39.8% year-on-year to ₹7,907 crore. Its contribution margin improved to negative 0.2%, a 440-basis-point improvement from the year-ago period. Instamart’s adjusted EBITDA loss also declined by ₹80 crore sequentially.
For Swiggy, this is an important shift. Quick commerce has been one of the biggest sources of losses for the company as it raced to add dark stores and compete with rivals in the fast-growing online grocery and convenience market. Reaching contribution breakeven means the business is now covering its variable costs at the contribution level, although it has not yet become fully profitable.
Swiggy management believes the next phase of Instamart’s growth will come from a wider and more differentiated product assortment, along with efficiencies created by increasing scale. Managing Director and Group CEO Sriharsha Majety said the contribution-breakeven milestone marked an important inflection point for the business.
The company’s traditional food delivery business also continued to perform well. Food delivery GOV increased 17.4% year-on-year to ₹9,490 crore during the quarter. Adjusted EBITDA from the segment stood at ₹292 crore, an improvement of ₹100 crore from the year-ago period.
Swiggy said its food delivery economics continued to strengthen as it worked on affordability and consumer-focused offerings. The company is also looking to expand adoption and reach what Majety described as the next 100 million users in the category.
Segment revenue data also underline the broad-based nature of the growth. Food delivery revenue rose 22.67% year-on-year to ₹2,208 crore, while quick-commerce revenue jumped 52.85% to ₹1,232 crore. Supply Chain and Distribution revenue increased 41.43% to ₹3,195 crore. Revenue from Out-of-Home Consumption rose 63.64% to ₹126 crore.
The Out-of-Home business, which includes dining and related experiences, also remained profitable. Its GOV grew 44.8% year-on-year, while its adjusted EBITDA margin improved to 0.9% of GOV.
Another initiative, Toing, Swiggy’s budget-focused food delivery offering, expanded to 50 cities. The company said around two-thirds of new users coming through the platform were first-time customers in the category, suggesting that affordability-focused offerings could help Swiggy reach a wider consumer base.
Despite the improved earnings, investors have not completely bought into the story yet. Swiggy shares initially responded positively to the results, closing about 3% higher at ₹293.80 on July 30. However, the stock came under pressure in Friday’s trading session, falling more than 3% during the day.
Swiggy’s Q1 FY27 results therefore offer a mixed but encouraging picture. Food delivery continues to generate healthy economics, Instamart is showing signs of maturing, and overall losses are narrowing. The challenge now is to turn these improvements into consistent profitability without sacrificing growth in India’s fiercely competitive food delivery and quick-commerce markets.
For investors, the coming quarters will be important. The focus is likely to remain on Instamart’s path towards EBITDA profitability, food delivery margins, customer growth and whether Swiggy can maintain strong revenue growth while keeping costs under control. For now, the latest results suggest the company is moving in the right direction, but the journey to sustained profits is not over yet.