Swiggy reported a narrower loss for the July-September quarter and set out plans to overhaul how its quick commerce business buys and sells goods, but the results did little to lift a share price that has fallen to record lows.
The Bengaluru-based food and grocery delivery company posted a consolidated net loss of ₹922 crore for the second quarter of fiscal 2027, down 15.6% from ₹1,092 crore a year earlier, according to its stock exchange filing reported by Entrackr. The loss widened, however, from ₹791 crore in the previous quarter.
Revenue from operations rose 36.1% to ₹7,571 crore from ₹5,561 crore a year earlier. For the first half of the fiscal year, revenue grew 36.7% to ₹14,383 crore, and the net loss narrowed 25.2% to ₹1,713 crore.
Where the revenue came from
Swiggy's largest revenue contributor was Scootsy Logistics, its supply chain and distribution business, which generated ₹3,690 crore, up 44.1% from a year earlier and almost half of total operating revenue. Food delivery revenue rose 21.6% to ₹2,338 crore, while quick commerce revenue grew 33.3% to ₹1,306 crore. The remainder came from dine-out services and newer initiatives such as Bolt and Toing.
On the cost side, total expenditure rose 29.7% to ₹8,703 crore. The cost of materials jumped 47% to ₹3,443 crore, delivery and related charges rose 32.9% to ₹1,895 crore, and advertising and promotion spending climbed 24.9% to ₹1,298 crore. Employee costs fell 2% to ₹676 crore. Other income more than tripled to ₹212 crore.
Instamart's inventory pivot
The most significant announcement concerned Instamart. Swiggy said it would begin moving the quick commerce business to an inventory-led model by the middle of the October-December quarter, a transition expected to take two to three quarters, Inc42 reported.
Under the current marketplace model, Instamart connects customers with third-party sellers who own the stock in its dark stores. Under an inventory model, the company itself owns the goods it sells. That gives it more control over assortment, pricing and availability, and lets it capture more of the margin.
Management said the shift should improve Instamart's working capital cycle by eight to 10 days and that "this has the potential to add 80 bps to Instamart's contribution margin when fully rolled-out."
The change has been made possible by a shift in Swiggy's ownership. Indian rules allow inventory-based e-commerce only for companies that are owned and controlled by Indians. Swiggy's attempt in May to win shareholder approval to become an Indian-owned and controlled company received 72.36% of votes, short of the 75% required, but shareholders approved the change in August. Domestic ownership now exceeds 58%.
Swiggy's rival Eternal, which owns Blinkit, completed a similar move first. Blinkit contributed ₹19,152 crore of Eternal's ₹24,138 crore in operating revenue for the same quarter, a figure inflated by the accounting shift to inventory-led sales.
Instamart's numbers
Instamart's net order value rose 34.8% year on year to ₹6,594 crore, and orders grew 29.3% to 130 million. But its contribution margin slipped to -1.0% of gross order value from -0.2% in the previous quarter, as Swiggy spent more on pricing and customer retention. Management said the margin was "within the range guided earlier" and that the company had "invested in differentiated assortment, availability and service quality."
