Swiggy’s Q2 FY26 Results: Growth, Margin Repair, and Instamart’s Rise

Swiggy’s Q2 FY26 shareholder letter shows a company moving from scale-first to execution and unit economics repair. Consolidated adjusted revenue jumped 52.6% YoY to ₹5,911 crore, while platform MTUs expanded 34% YoY to 22.9 million. Food delivery posted sustained GOV growth and positive contribution; quick commerce (Instamart) delivered rapid GOV expansion and materially narrower contribution losses as average order values and store productivity rose. Management frames the quarter as the result of capability builds — darkstores, assortment expansion, subscription and pricing constructs — and operational tightening across the stack.

The Numbers: Scale with Signs of Margin Improvement

Swiggy reported consolidated adjusted revenue of ₹5,911 crore, up 52.6% year-on-year and 11.4% quarter-on-quarter. Platform monthly transacting users (MTUs) grew 34% YoY to 22.9 million (up 6.1% QoQ). On profitability, consolidated adjusted EBITDA loss narrowed sequentially (improved by ₹118 crore QoQ to a loss of ₹695 crore), and B2C adjusted EBITDA margin (as a % of B2C GOV) improved sequentially even as it remained negative year-over-year at -3.6%.

Food delivery continues to deliver steady unit economics: GOV was ₹8,542 crore (+18.8% YoY), MTU expanded to 17.2 million, and adjusted EBITDA for the segment improved to ₹240 crore (margin 2.8% of GOV). These trends indicate growing order density and better contribution to orders.

Instamart: Accelerated GOV, Larger Baskets, Fewer Incremental Losses

Quick-commerce GOV surged 107.6% YoY to ₹7,022 crore and grew 24.2% QoQ — driven by a 40% YoY rise in average order value to ₹697 and a larger non-grocery mix. Instamart added 40 darkstores in the quarter to reach 1,102 stores across 128 cities and increased average darkstore size (4,160 sq ft), lifting active darkstore area to 4.6 million sq ft (+135.8% YoY). Contribution losses fell ~30% QoQ to ₹181 crore, and the contribution margin improved to -2.6% of GOV; adjusted EBITDA losses also narrowed to ₹849 crore. Management frames this as progress toward the guided trajectory of breakeven before the June ’26 quarter.

Management highlights three core levers behind the results: (1) better assortment and larger baskets (non-grocery expansion and Maxxsaver/cart features), (2) selective capacity additions and higher utilisation of store footprint (sweating existing assets before broad geographic expansion), and (3) subscription and pricing structures that sustain affordability (management notes total cost of service remains ~5–6% of AOV over three years). Those levers together lifted GOV per sq. ft. and GOV per user—the two metrics Swiggy singles out as primary determinants of platform economics.

"Elevate the Quality of Life of Urban Consumers by Offering Unparalleled Convenience"

Out-of-home consumption grew 52% YoY to ₹1,118 crore and recorded adjusted EBITDA margins of 0.5% in an early stage of scale. On sustainability, Swiggy reported a 7x increase in EV fleet year-on-year and estimated a reduction of over 4,500 tonnes of carbon emissions; the company reiterated a goal of a 100% EV fleet by 2030. Delivery-partner network size rose 32% YoY to 690,000, and Swiggy said it is experimenting with B2B delivery services to expand partner earnings avenues.

The quarter shows clear progress in two dimensions: user growth (MTU expansion) and improving unit economics in both food delivery and quick commerce. Instamart’s AOV and GOV/sq ft improvements are positive signs that assortment and customer value propositions are translating into healthier baskets and higher productivity. Yet adjusted EBITDA for the consolidated group remains negative, and scaled losses in quick commerce, though smaller, are still material — meaning execution must continue to translate into sustained operating leverage. The company’s approach to “sweat the footprint” rather than broad, low-utilisation expansion is a defensive move to protect economics while keeping optionality for faster capacity rollouts if demand sustains.

Consideration For Next Quarter

• GOV per sq. ft. and GOV per user trends in Instamart (Are gains repeatable?)

• Contribution margin conversion into sustained adjusted EBITDA improvements across segments

• Any change in the pace of store additions (management has positioned growth as selective)

• Progress on EV delivery scale and fleet economics as relevant for cost and ESG

Use Cases That Make the Numbers Meaningful

• Urban households shifting grocery trips to Instamart for larger, planned baskets (higher AOV and net AOV)—this is visible in the quarter’s AOV data and in the uptake of non-grocery categories.

• Frequent food delivery users are buying into subscriptions and value programmes (Maxxsaver, Swiggy One) that increase order frequency while keeping total out-of-pocket costs within the stated affordability bracket.

• Restaurants leveraging platform delivery density and subscription demand to reach higher local order volumes while benefiting from improved delivery economics.