Swiggy Q4 revenue surges 45%, net loss narrows to Rs 800 crore

Swiggy reported a 45% year-on-year rise in operating revenue for the March quarter at Rs 6,383 crore. The food and grocery delivery company also narrowed its net loss by 26% thanks to reduced cash burn and a one-time exceptional income.

Net loss narrowed to Rs 800 crore in the three months ended March. Total cash burn declined to Rs 606 crore from Rs 903 crore in the December quarter. Swiggy also earned Rs 2,399 crore in cash proceeds from the sale of its stake in bike-taxi startup Rapido last quarter.

Swiggy saw improved profitability at Instamart, its quick commerce business, after the company pulled back on discounts and subsidies, which it had earlier flagged as unsustainable in the long term. However, this also led to moderation in the unit’s growth, in line with the broader quick commerce industry.


Sequentially, Instamart’s gross order value (GOV) declined marginally to Rs 7,881 crore from Rs 7,938 crore in the December quarter.

Speaking on an analyst call, Swiggy founder and group CEO Sriharsha Majety said while the company isn’t comfortable ceding market share in quick commerce, it is making trade-offs between growth and profitability as it works toward its medium-term goal of building Instamart into a Rs 1 lakh crore net order value business with a 4-5% Ebitda margin.

“If fighting for short-term relevance means spending in places that will hurt us later, I think that will compromise our long-term relevance,” he said. “It’s a balancing act, but there’s no commitment to go out and lose market share. It’s important to build a more durable business. As we mentioned, more growth will come from executing on the clarity of positioning that we’ve been talking about. We don’t yet know how many players will be left on the other side of all this spending and overall category growth.”

Swiggy reported a 27% year-on-year growth in adjusted revenue from its food delivery business. The company posted adjusted revenue of Rs 2,075 crore and a GOV of Rs 9,005 crore in the March quarter. GOV grew 22.5% from a year earlier, above the company’s guided range of 18-20%.

“We have continuously launched a series of innovative offerings across our food delivery business,” the company said in its letter to shareholders. “Collectively, these speed and affordability propositions now account for approximately one-fourth of our total platform volumes.”

The company’s contribution margin remained steady at 7.8%, while improving sequentially from 7.6% in the December quarter. Swiggy also improved adjusted Ebitda from its food delivery business to 3.3% in the fourth quarter, from 2.9% a year earlier.

Swiggy also said it is “confident” of delivering sustainable medium-term growth of 18-20% year-on-year in food delivery GOV.