India’s leading food delivery giant, Swiggy, continued to face financial turbulence in the second quarter of FY26. Despite reporting impressive revenue growth, the company’s losses widened sharply, signaling that profitability remains a challenge for the foodtech major amid intense competition and rising operational costs.
Losses Mount Despite Sequential Improvement
According to the latest financial data, Swiggy’s net loss surged 74.4% year-on-year (YoY) to INR 1,092 crore in Q2 FY26, compared to INR 626 crore in the same period last year (Q2 FY25). However, there was a slight improvement on a sequential basis, as the company managed to reduce its losses by 9% from INR 1,197 crore reported in the previous quarter (Q1 FY26).
While the company’s cost control measures have begun showing some quarterly impact, Swiggy continues to grapple with high marketing and delivery expenses, which remain key contributors to its overall losses.
Revenue Growth Remains Robust
On the brighter side, Swiggy’s operating revenue surged 54% YoY to INR 5,561 crore in Q2 FY26, up from INR 3,601 crore in Q2 FY25. The strong growth was primarily driven by rising order volumes, improved customer retention, and expansion in tier-2 and tier-3 cities.
Sequentially, revenue also grew 12% from INR 4,961 crore in the previous quarter, highlighting Swiggy’s continued momentum in both its food delivery and quick commerce segments. Including other income of INR 59 crore, the company’s total income stood at INR 5,620 crore for the quarter under review.
Expenses Continue to Soar
Swiggy’s total expenses jumped 56% YoY to INR 6,711 crore, reflecting the company’s heavy investments in technology, logistics, and marketing. As Swiggy continues to compete with Zomato, its biggest rival in India’s food delivery space, maintaining user engagement and delivery efficiency remains a costly affair.
The company’s adjusted EBITDA loss doubled (up 104% YoY) to INR 695 crore. However, on a quarter-on-quarter basis, this figure showed a 15% improvement from INR 813 crore in Q1 FY26 — suggesting gradual progress toward operational efficiency.
Focus on Growth and Quick Commerce
Swiggy’s growth is also being fueled by its quick commerce vertical, Instamart, and its restaurant-focused services. With increasing competition in the on-demand grocery delivery segment, Swiggy is likely to keep investing aggressively to capture market share.
Despite short-term financial strain, Swiggy’s strong revenue growth and improving sequential metrics may signal that the company is laying the groundwork for future profitability.
Conclusion
While Swiggy’s Q2 FY26 performance paints a mixed picture, the company’s ability to drive strong revenue growth amid mounting losses highlights both the potential and the challenges of India’s fast-evolving foodtech sector. With continued focus on efficiency, technology, and customer experience, Swiggy remains one of the key players shaping the future of online food delivery in India.
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