Swiggy shares drop 15% as Instamart losses widen
Swiggy reported a 36% revenue increase for Q2, but investor sentiment soured as mounting losses in its quick-commerce unit overshadowed gains in food delivery.
Swiggy’s second-quarter financial results for fiscal year 2027 revealed a deepening conflict between growth and profitability. While revenue from operations rose 36.1% to ₹7,571 Cr, the company saw its shares fall 15% to ₹179.90 on October 23, resulting in a ₹9,000 Cr loss in market capitalization.
The divergence between business units is central to the results. The food delivery segment reached record adjusted EBITDA, fueled by advertising and delivery efficiencies. Conversely, the Instamart quick-commerce division reported an adjusted EBITDA loss of ₹895 Cr. Although the unit saw a 13.4% sequential growth in net order value, the cost of customer acquisition and network expansion kept the contribution margin at a negative 1.0%.
Market pressure is mounting as rival Blinkit continues to outpace Swiggy in network footprint and profitability, reporting positive adjusted EBITDA for the quarter. Swiggy management maintains that deepening customer habits will eventually yield returns, though they have yet to provide a firm timeline for breaking even.
The company has set a roadmap requiring roughly 2.3 times its current scale to reach profitability. Analysts remain focused on whether Swiggy can improve order economics before capital expenditure exhausts investor confidence.