The company said its consolidated net loss for the first quarter ended June 30 narrowed to 7.91 billion rupees ($82.67 million), while revenue increased to 68.12 billion rupees.
The results came close to market expectations, although the loss was slightly wider than analysts had forecast. Analysts tracked by LSEG had expected Swiggy to report a loss of 7.2 billion rupees and revenue of 65.21 billion rupees.
A major highlight of the quarter was the improvement in Instamart’s contribution margin, a key measure of profitability that shows the revenue remaining after variable costs. The quick-delivery platform reported a contribution margin of negative 0.2% of gross order value, improving significantly from negative 1.8% in the previous quarter.
Gross order value refers to the total value of products sold through the platform before discounts and adjustments.
Instamart Focuses on Profitability as Competition Intensifies
Instamart, which delivers products ranging from groceries such as eggs to electronics including smartphones within minutes, is operating in an increasingly competitive quick-commerce market.
Swiggy is competing against major rivals including Eternal’s Blinkit, Zepto and Tata-backed BigBasket, as companies race to expand their delivery networks, increase the number of local distribution hubs and reduce delivery times.
Swiggy attributed the improvement in Instamart’s performance to several factors, including stronger advertising revenue, increased customer frequency and a broader product selection available through its dark stores—specialized warehouses designed to fulfill online orders quickly.
The company said its strategy has focused on improving unit economics rather than aggressively chasing growth.
"In the last 4 quarters, we have taken a ... choice in terms of choosing contribution over growth (for Instamart)," Sriharsha Majety, group CEO and co-founder at Swiggy, said on an earnings call.
Majety said the company expects Instamart’s contribution margin to remain between 0% and negative 1% over the next few quarters as it balances expansion with profitability.
Expansion Plans Continue Despite Margin Pressure
Swiggy plans to open 75 additional Instamart stores across India during the September quarter as it looks to increase coverage and compete more effectively in the quick-commerce segment.
The platform currently operates 1,171 stores across 131 cities, providing a growing network for rapid deliveries in urban and emerging markets.
The expansion comes as India’s quick-commerce industry continues to attract significant investment, with companies seeking to capture consumer demand for convenience-driven shopping.
While rapid delivery businesses have historically faced profitability challenges due to high logistics and infrastructure costs, companies are increasingly focusing on improving margins through advertising, higher order frequency and better inventory management.
Food Delivery Market Remains Resilient
Beyond quick commerce, Swiggy’s traditional food delivery business continues to benefit from steady consumer demand. Analysts said India’s food delivery sector has remained relatively resilient despite signs that some consumers have become more cautious with discretionary spending.
The company’s latest results suggest that Swiggy is attempting to balance growth ambitions with a stronger focus on financial discipline as competition intensifies across both food delivery and quick-commerce markets.
As rivals expand their networks and seek greater market share, improving profitability at Instamart is expected to remain a key priority for Swiggy in the coming quarters.