Swiggy food delivery hits record Rs 341 crore profit as Instamart re-accelerates and burns more

Swiggy runs an app that brings restaurant food to your door and delivers groceries in about 13 minutes from nearby warehouses called dark stores. On October 22, 2026, it reported results for the quarter ended September 30, 2026 with adjusted revenue of Rs 7,909 crore, food delivery order value of Rs 10,054 crore with record profit of Rs 341 crore, and Instamart order value of Rs 9,230 crore with a loss of Rs 895 crore . The takeaway is food delivery is now funding growth elsewhere, while quick commerce traded a little margin to grow faster and add stores at the fastest pace in a year.

Food delivery is the profit engine

Food delivery Gross Order Value, the total value of food orders placed, reached Rs 10,054 crore in Q2FY27. September alone grew more than 20% year on year . Monthly transacting users were 1.98 crore in the quarter .

Profit hit a new high. Adjusted EBITDA, profit without some non-cash and rent costs, was Rs 341 crore at 3.4% of order value . That was up Rs 101 crore year on year with margin up 58 basis points .

The quarter builds on a steady climb in users and margin over two years.

Source: Q1FY25 to Q2FY26 — ; Q1FY27 — ; Q2FY27 — .

In Q1FY27 order value was Rs 9,490 crore with users at 1.92 crore and margin at 3.1% . Management said normalised for restaurant-led cancellations from LPG supply disruption, like-for-like growth would have been about 18% .

Management links the margin climb to better take-rate, the share Swiggy keeps from each order, plus operating leverage as orders scale . Advertising revenue helped offset volatility from competition .

The sequential dip in Q1FY27 was seasonal. Management said the 20 basis points dip in contribution and Adjusted EBITDA reflected delivery-partner availability and the annual wage hike . That was smaller than the 40 to 50 basis points dip a year earlier .

Operations helped. Management cites faster Bolt priority delivery with double-digit share of deliveries, fewer severely delayed orders, happier riders and 1.5 times more restaurant partners in 24 months . Bolt is live across 700 plus cities at about 1 in 10 orders .

Other use cases support frequency. These include 99 Store for affordable meals, EatRight for healthier options at about 15% of volumes, plus Desk Eats, Food on Train and late-night ordering . Management reiterates a steady-state goal of 5% Adjusted EBITDA on order value over the medium term .

Toing is the bet to add new eaters

Toing is Swiggy standalone app for affordable, budget-friendly meals. It launched in September 2025 and is now in more than 50 cities . Management calls it its biggest bet in two years to crack affordability .

Affordability is framed as the key barrier. Management says about 70% of users transact less than once a month . Cracking it could unlock 30 to 40% additional category growth .

The model is built for low carts without discounting. It runs on lower restaurant commissions with savings passed to consumers . There is no platform or packaging fee with a flat delivery fee and more third-party ads .

Costs stay lean by design. Shorter last miles of about 2 kms on average allow higher batching on a slower network . It uses Swiggy existing logistics and support so indirect costs stay low .

Commissions do need to be different from the Swiggy platform to enable everyday low prices, though not zero in practice, said MD and Group CEO Sriharsha Majety . Because average order values are lower, Swiggy does not need to make Rs 40 per order to build a large profitable version .

Early traction is cited on users and restaurants. Two out of three new users on Toing were new to the platform or had been dormant . A significant minority of restaurants on Toing have already reached more than half the volumes they do on Swiggy .

Toing is operational across 80% of food marketplace GMV-contributing cities . It makes a meaningful contribution to Swiggy orders per day in 32 cities . Belly and tail restaurants over-index on Toing .

Toing sits in Platform Innovations, not in reported B2C order value or platform frequency . In Q1FY27 that unit had adjusted revenue of Rs 69 crore with Adjusted EBITDA of minus Rs 131 crore, largely marketing to acquire new users . Management says Toing success can catapult combined food delivery marketplace growth to 25 to 30% .

Instamart grew faster but gave back some margin

Instamart Gross Order Value was Rs 9,230 crore in Q2FY27 . Net Order Value, order value less discounts that shoppers actually pay, was Rs 6,594 crore .

Contribution margin, money left after delivery and order costs as a share of order value, was minus 1.0% . Adjusted EBITDA margin was minus 9.7% with a loss of Rs 895 crore .

That follows a reset year where Instamart chose contribution over growth. In Q1FY27 order value was Rs 7,907 crore with Net Order Value at Rs 5,817 crore . Contribution was minus 0.2% and loss narrowed by Rs 80 crore sequentially to Rs 778 crore .

Source: Q2FY25 to Q2FY26 — ; Q1FY27 — ; Q2FY27 — .

Management said it improved contribution by Rs 28 per order over five quarters to May 2026 . Adjusted revenue per order rose to Rs 108 from Rs 83 in Q4FY25 . It then invested in availability, speed and curated value, which left Q1FY27 at minus 0.2% .

For Q2FY27 it guided to operate in a zero to minus 100 basis points band while accelerating sequential growth . This assumed no change in competitive intensity .

Demand signals improved. Four-week trending Net Order Value growth to July 26 was 10.0% versus 1.0% in the prior four weeks . First-month retention rose to 61% from 55% in Q1FY26 .

Monetisation levers were better brand take-rates with scale, advertising kicking in, and user-fee monetisation after testing no-fee constructs . Management called this sustainable with brand and consumer partners .

More stores, same cities, curated shelves

Instamart added 69 dark stores in the quarter . That equalled the cumulative additions of the last three quarters . The total reached 1,240 stores covering 52.00 lakh sq ft .

In Q1FY27 it was at 1,171 stores across 131 cities with 49.20 lakh sq ft . That was after a net addition of 28 stores in that quarter .

Orders per store per day were 1,089 in Q1FY27 . Network utilisation was about 40% . Some hyperlocal stores were hitting 2,500 to 3,000 orders a day .

Expansion is therefore densification in the same cities. Management said it will open in the same cities with no new cities . It had guided to add about 75 stores in Q2FY27 .

As base expectations get commoditised, management says assortment is a curation game rather than a volume game . The aim is to enable consumers to buy better, not just offer more .

The Switch to Better push with more than 400 brands across 50 key categories contributed more than 15% of category sales in a short time . Customers buying those SKUs showed 30% higher retention .

Own brand Noice spans more than 46 categories and 380 SKUs with more than 90 lakh customers . It shows 1.5 times higher order frequency and 1 in 10 basket penetration . Management says speed and selection are table stakes and differentiation will decide winners .

Dining out keeps compounding

Out-of-Home Consumption, led by Dineout, had order value of Rs 1,508 crore in Q2FY27 . Growth was 34.9% year on year with Adjusted EBITDA margin of 0.5% . It was the seventh successive profitable quarter .

In Q1FY27 order value was Rs 1,529 crore . That was up 44.8% year on year and up 22.8% quarter on quarter, the highest in two years .

Restaurant supply hit a high. Average monthly active restaurant partners were 59,000 in Q1FY27 . That was up 12.9% quarter on quarter at a multi-quarter high .

Profit also hit a high. Adjusted EBITDA was Rs 14 crore at 0.9% in Q1FY27 . For FY26 order value was Rs 4,645 crore with 0.6% margin, the first positive year .

Source: FY26 — ; Q1FY27 — ; Q2FY27 — .

Management frames it as negative working capital and near-zero capex with high pass-through revenue . It targets Rs 20,000 to Rs 25,000 crore order value by FY31 with Rs 900 to Rs 1,000 crore Adjusted EBITDA .

Indian owned and controlled tag moves forward

Swiggy said it obtained necessary approvals to qualify as an Indian owned and controlled company, with the transition underway . Domestic ownership crossed 50% for the first time on July 1, 2026 .

On July 23, 2026 the Board approved capping total foreign ownership at 49.5% on a fully diluted basis . It also changed company rules to qualify under foreign exchange laws, to be voted on August 18, 2026 .

By October 22, 2026 shareholders had overwhelmingly supported the cap . Regulatory approvals were taken and domestic ownership rose to over 58% .

Management expects the shift to start mid-Q3 FY27 and complete in 2 to 3 quarters . This will allow Instamart to directly own and sell inventory in addition to the marketplace .

The potential benefit is about 80 basis points to contribution margin . Working capital is expected to normalise at about 15 days .

Group losses narrow but scale-up still burns cash

Reported consolidated revenue from operations differs from adjusted revenue that includes delivery and platform fees passed through. Revenue grew strongly year on year in both Q1FY27 and Q2FY27 .

Net loss narrowed year on year in Q2FY27 . EBITDA loss also narrowed year on year . For the half year, revenue was higher while net loss was lower than a year earlier .

Source: Consolidated financials — .

By segment, food delivery stayed profitable while quick commerce and platform innovations remained in loss.

Source: Q1FY27 to Q2FY27 segment financials — .

Total equity was Rs 16,970 crore with cash and equivalents of Rs 2,736 crore at quarter end . Management cites Rs 14,400 crore cash and debt-free status in its FY31 plan .

What management is guiding

For food delivery management maintains year-on-year growth between 18% to 20% outside Toing . It sees penetration at only about 1 in 10 Indians ever transacting as a secular multi-year opportunity .

For quick commerce it expects contribution in zero to minus 100 basis points for the next couple of quarters . It is cautiously optimistic for at least double-digit sequential Net Order Value growth .

It sees Adjusted EBITDA break-even at about Rs 60,000 crore run-rate annualised Net Order Value . That needs 5 to 6% contribution equating to about Rs 30 per order .

Another Rs 30 per order is needed from current levels . Management splits it as higher-margin mix at Rs 10, ads at Rs 10, densification and automation at Rs 5 and operating leverage at Rs 5 . An inventory-led model could add Rs 4 to Rs 5 more .

The Capital Markets Day ambition is about Rs 10,000 crore Adjusted EBITDA at about 4% of order value by FY31 . That is on order value of about Rs 2,50,000 crore . Food is seen at about Rs 5,000 crore, quick commerce at about Rs 4,000 crore and dining-out at about Rs 1,000 crore .

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Sources

1. 1 Press Release for the Unaudited Financial Results (Consolidated & Standalone) for the quarter and half year ended September 30, 2026
2. 2 Swiggy Ltd - 544285 - Shareholders'' Letter For Q2 - 2026-27
3. 3 Investor presentation, Nov 2025
4. 4 Investor presentation, Jul 2026
5. 5 Earnings-call transcript, 2026-08-05
6. 6 Investor presentation, 2026-08-06
7. 7 Earnings-call transcript, May 2026
8. 8 Announcement under Regulation 30 (LODR)-Press Release / Media Release
9. 9 Board Meeting Outcome for Outcome Of The Board Meeting
10. 10 Swiggy Ltd — historical financial matrix and financial statement analysis