Swiggy's Financial Performance: A Mixed Bag

In a surprising turn of events, Swiggy, the renowned food and grocery delivery platform, reported a 35% year-on-year increase in revenue from operations, reaching Rs 15,227 crore. This growth was primarily fueled by a significant uptick in food delivery services and a remarkable doubling of Instamart's order value.

The Cost of Expansion

However, the company's net loss widened to Rs 3,117 crore for FY25, up from Rs 2,350 crore the previous year. This escalation in losses is attributed to Swiggy's aggressive investments in its quick-commerce vertical, Instamart, which saw its adjusted EBITDA loss increase to Rs 840 crore in the March quarter.

A Glimpse of Hope

Amidst these challenges, Swiggy's food delivery business showed signs of improved profitability, with the adjusted EBITDA margin expanding to 2.9% of gross order value (GOV), a significant leap from 0.5% a year ago. The company's innovative offerings, such as faster deliveries through Bolt and premium services under its One Blck subscription, played a pivotal role in this achievement.

Looking Ahead

CEO Sriharsha Majety remains optimistic, highlighting the company's focus on customer retention and the quality of user cohorts. With average monthly transacting users growing by 35% year-on-year to 19.8 million, Swiggy is poised for further growth, despite the competitive landscape.