Swiggy Q2 operating revenue rises 30%, net loss falls marginally

Swiggy has posted a 30% year-on-year (YoY) growth in its operating revenue for the July-September quarter, primarily driven by the expansion of its quick commerce unit Instamart.

While its net loss only narrowed marginally in the second quarter of this fiscal at Rs 625 crore, the company, in its maiden earnings as a listed firm, said that it expects to turn operationally profitable at a group level by October-December 2025, mainly from improved profitability from its food delivery business.

The company’s founder and group CEO Sriharsha Majety, in an interaction with ET, said that Swiggy plans to focus its investments on Instamart, which competes with the likes of Zomato-owned Blinkit, Nexus Venture Partners-backed Zepto, Flipkart Minutes and Bigbasket’s BB Now.


Swiggy aims to take its dark store count up to 1,046 by March 2025 from 609 as of September 30 this year. Its rivals Blinkit and Zepto have set targets of 1,000 and 700, respectively, for the same timeline. Swiggy increased its IPO fundraise largely to fund its quick commerce business and had mentioned the same in its draft IPO papers.

It raised Rs 4,359 crore from the IPO and already had a cash balance of Rs 4,531 crore as of September 30. The company said on Tuesday that it is investing Rs 1,600 crore in subsidiary Scootsy Logistics, which manages the warehouses for its quick commerce business.

“This business (Instamart) is witnessing a heightened degree of competitive action. This means that we will need to be agile and responsive to the market movements and modulate our investments towards the long-term health of the business for sustainable GOV (gross order value) growth,” Majety said.

Besides Swiggy, its rivals Zomato and Zepto have also raised significant sums. While Zomato closed an Rs 8,500 crore qualified institutional placement (QIP), Zepto has raised over $1.3 billion across the last few months.

Food delivery use cases

Speaking during an earnings call, Swiggy’s food marketplace CEO Rohit Kapoor said that growth for the food delivery segment could come from geographic expansion, doubling down on existing markets and foraying into new use cases.

The company launched the 10-minute food delivery service Bolt in October and has scaled up to over 400 cities. Swiggy said that Bolt now accounts for 5% of its total food deliveries.

For the September quarter, the company’s food delivery GOV grew 14% on-year to Rs 7,191 crore. The segment’s operating margins also improved significantly YoY. “We expect our food delivery business to deliver sustainable adjusted Ebitda margins of approximately 5% in the medium term. This will be delivered through increased monetisation led by advertising, optimisation in other variable costs and operating leverage,” the company said in a note.

Source: Swiggy earnings

Instamart in focus

Swiggy Instamart reported gross order value (GOV) of Rs 3,382 crore for Q2FY25 – a 24.1% rise quarter-on-quarter (QoQ), driven by a 21% growth in order volumes and a 10% boost in orders per dark store. The number of active dark stores rose 9%, totalling 609 as of September 2024.

Source: Swiggy earnings

Average order value (AOV) rose to Rs 499 per order, a 7.3% increase in H1FY25. Instamart’s footprint now spans 44 cities, and Swiggy plans to double its store count and dark store area by March 2025. The 24% growth in GOV is the fastest pace since Q1FY23, Majety said. Contribution margins have also improved significantly, moving from -7.5% in Q1FY24 to -1.9% in Q2FY25.

“Despite significant growth investments and rising competitive intensity, our contribution margin continues to expand,” Majety noted, adding that adjusted Ebitda margins are also trending positively.

Amid intense competition, Swiggy’s national average delivery time is now 13 minutes, down from 17 minutes a year ago. Majety highlighted that the company has also achieved “industry-best levels” in item availability and delivery reliability, further enhancing customer experience.

Going ahead, Swiggy plans to focus on driving user acquisition, increasing order frequency and boosting wallet share. These efforts will be supported by hyper-local initiatives, geographical store expansion and strategic marketing spends aimed at strengthening the brand's position in the quick-commerce space, Majety said.

Also Read: Quick commerce can be bigger than food delivery, won't be a duopoly: Swiggy founder Sriharsha Majety