Swiggy Q1 Results FY26: Revenue Tadka, But Loss Taste Too!
Swiggy Q1 Results FY26 has once again raised the temperature of the industry. While on one hand revenue has jumped by a whopping 54%, on the other hand the loss graph has also climbed up with an increase of 96%. This has forced both investors and the food-tech world to think: will this recipe for growth really become profitable or will it just remain a khichdi of losses?
Loss increased, but revenue also rose sharply
Swiggy, one of India’s largest food delivery platforms, reported a net loss of Rs 1,197 crore in the first quarter of FY26, which is almost double the Rs 611 crore of last year. But there is a twist here – revenue also jumped 54% to Rs 4,961 crore. This means that while demand is increasing, expenses are growing at a faster pace than that.
CEO’s Vision: Convenience at Scale, Profit at the Door
CEO Sriharsha Majety said that these losses are part of his long-term vision. The company is still investing in “convenience at scale” – i.e., the mission is to bring a fast and seamless delivery experience to every user. But the expenses incurred in this mission have become so high that profitability has now become a long-term dream.
Instamart ate into margins
Swiggy’s quick commerce arm – Instamart – was also in the spotlight this quarter. Instamart’s expansion has hurt margins a lot. Expenses have gone up by 60% – to Rs 6,244 crore. This means that apart from the increase in revenue, the speed of the company’s cash burn has also become faster.
Zomato showed profit, Swiggy now behind
And when we talk about competition, Zomato earned a revenue of Rs 7,167 crore in this quarter and also made a profit of Rs 25 crore – even if it is small. This clearly shows that Zomato is now on the track of profitability, while Swiggy is still struggling.
Rapido: Friend as well as enemy?
Another interesting twist is that a new challenge has arisen for Swiggy – and that is Rapido. Swiggy has a 12% stake in Rapido, but now the same Rapido is entering the food delivery space. Swiggy admitted in a letter to shareholders that Rapido’s move was creating a potential “conflict of interest.” The company is now “actively re-evaluating” its investment.
The market is hot with competition
The market is now quite fierce. Swiggy acknowledged that new players are entering the market, even if they are small players. Instamart CEO Amitesh Jha said, “We are baking that into our plans,” which was an indirect signal towards the slow but steady entry of giants like Amazon.
Blinkit vs Instamart: Thinking of changing the model
Just as Blinkit has converted its model to an inventory-led approach, Instamart is also thinking in the same direction – but at an “appropriate time”. Swiggy’s CFO Rahul Bothra said that the company will take action only when its capability is ready in that direction.
The truth of financials: From AOV to EBITDA
If we talk about financial numbers, the picture looks a little grim. Instamart’s adjusted EBITDA loss reached Rs 896 crore, which was more than the adjusted revenue of that quarter. Blinkit earned 3X revenue in the same quarter as Swiggy, but its loss was only one-fifth. This comparison shows that Swiggy now needs to work on its operational model again.
New look of the app, but old story
If we talk about Average Order Value (AOV), Instamart is still behind Blinkit – Instamart’s AOV was less than Blinkit’s Rs 669 in this quarter. Meanwhile, Swiggy has also changed the look of its app – through a fresh UI-UX update. The design was new, but the results were almost the same old – burn to grow. Revenue increased, but loss was even bigger.
Swiggy’s Future: Revolution is on, but waiting for profit
Swiggy’s Q1 FY26 results show that the company is definitely on the path of growth, but the cost of that growth is also quite high. Until the company brings its expenses under control, profits will remain just a distant dream. But yes, one thing is clear – Swiggy has created a revolution in the field of delivery and convenience. Now it remains to be seen whether this revolution will be able to give success to the company in the long term or not.
Disclaimer:
This article is for informational purposes only. The financial data and statements contained herein are based on publicly available sources. This article should not be construed as financial advice of any kind. The article is completely original, human-written, and Google Search policy compliant.
Also Read
