BENGALURU – Hyperlocal delivery giant Swiggy Limited reported a challenging third quarter on Thursday, January 29, 2026, as its consolidated net loss remained above the ₹1,000 crore mark for the second consecutive quarter. While the company achieved a massive 54% surge in revenue, the heavy cost of scaling its quick-commerce arm, Instamart, continues to weigh heavily on the bottom line.
The results highlight a widening gap between Swiggy’s rapid market expansion and its path to profitability, especially as rival Zomato’s Blinkit recently achieved EBITDA breakeven.
Q3 Financial Highlights: Explosive Growth vs. Mounting Losses
For the quarter ended December 31, 2025, Swiggy’s financials reflected the intense “burn” required to maintain its position in India’s hyper-competitive delivery market:
- Net Loss: Reported at ₹1,065 crore, compared to a loss of ₹799 crore in the same quarter last year.
- Revenue from Operations: Jumped 54% YoY to ₹6,148 crore, up from ₹3,993 crore in Q3FY25.
- Quarter-on-Quarter (QoQ): Revenue rose 11% from ₹5,561 crore, while losses narrowed slightly from ₹1,092 crore in Q2.
How Instamart is Driving the Topline and the Losses
The “Instamart Puzzle” remains the centerpiece of Swiggy’s financial narrative. The quick-commerce segment saw its Gross Merchandise Value (GMV) grow by over 100% YoY, fueled by the festive season and aggressive dark store expansion.
However, the cost of this growth remains steep:
- Infrastructure Investment: Swiggy added over 100 new dark stores this quarter to counter the rapid expansion of Zepto and Blinkit.
- Marketing & Subsidies: High discount levels during the Diwali and year-end sales cycles spiked advertising and promotion expenses.
- Supply Chain Costs: The procurement of FMCG products for its owned-inventory model now accounts for a significant portion of total expenditure.
Why the Core Food Delivery Business is a Silver Lining
While Instamart is in investment mode, Swiggy’s core food delivery business showed signs of maturing. Revenue from this vertical grew roughly 22% YoY, with contribution margins improving to approximately 7.5%.
The company’s premium subscription tier, Swiggy One, and the rollout of Bolt (the 10-minute food delivery service) have helped improve order frequency among power users. However, analysts note that the gains in food delivery are currently being “reinvested” (and then some) into the quick-commerce war.
Market Reaction: A Tale of Two Deliveries
Swiggy’s stock, which has been trading below its IPO price of ₹390, saw a volatile reaction following the results, ending the day marginally lower. The market’s caution stems from the contrast with Eternal (Zomato), which recently reported a ₹102 crore profit and saw Blinkit turn EBITDA positive.
“Swiggy is growing the market, but the cost of acquisition is not coming down as fast as investors hoped,” noted a senior tech analyst. “The ₹10,000 crore QIP (Qualified Institutional Placement) completed in December provides a massive cash cushion, but the clock is ticking on when Instamart will stop bleeding.”
What’s Next: The Road to June 2026
Management has reiterated its guidance for Instamart to reach contribution margin breakeven by Q1 FY27 (June 2026). To achieve this, retailers and investors should watch for:
- Ad Revenue Growth: Increasing the monetization of the Instamart platform through brand partnerships.
- Order Consolidation: Reducing delivery costs by increasing the Average Order Value (AOV).
- Automation: The rollout of automated sorting in larger dark stores to lower manual labor costs.