Swiggy is targeting positive adjusted EBITDA by Q3FY26 at the consolidated group level. “We expect to achieve positive adjusted EBITDA by October-December 2025,” noted Sriharsha Majety, Co-founder, MD and Group CEO, in a letter to shareholders.
In its first quarterly earnings report since going public, food delivery giant Swiggy is setting its sights on profitability by the October-December quarter of FY26, despite fierce competition and ongoing investments in quick commerce. The company reported a net loss of Rs 625.5 crore in Q2FY25, a slight improvement from Rs 657 crore in Q2FY24. However, Swiggy’s revenue from operations surged 30 per cent year-on-year to Rs 3,601 crore, signaling a strong upward trajectory.
The food delivery segment has already turned profitable on an adjusted EBITDA basis, with margins improving by 1,000 basis points over the past 2.5 years to reach 1.6 per cent in Q2FY25. Majety emphasised, “Our gross order value (GOV) grew 5.6 per cent quarter-on-quarter, driven by consistent growth in users and their spending.”
Quick Commerce Push: Instamart and Bolt
Swiggy’s quick commerce arm, Instamart, is rapidly expanding with a focus on dark stores and faster delivery times. The company added 52 new stores in Q2FY25, increasing its dark store footprint to over 2 million square feet. Delivery times have improved to an average of 13 minutes, down from 17 minutes a year ago. “Our quick commerce category is expanding rapidly across geographies and consumer shopping missions,” Majety said. “Despite significant growth investments, our contribution margin improved from -7.5 per cent in Q1FY24 to -1.9 per cent in Q2FY25.”
The company’s 10-minute delivery service, Bolt, has already captured 5 per cent of food delivery orders within just eight weeks of launch, and it’s available in 400 cities. Majety remains bullish on the service, stating, “Users continue to surprise us with their rising expectations of what should be available to them in 10 minutes.”
Market Challenges and Competitive Intensity
Swiggy’s aggressive expansion comes amid heightened competition from rivals such as Zomato and Zepto, which have each raised significant capital. Majety acknowledged the competitive landscape, saying, “With increased competitive intensity, we may see some acceleration in overall category growth, which is why we are aggressively expanding our store network.” The company plans to double its dark store count by the end of FY25.
Swiggy’s marketplace model for quick commerce has set it apart from its peers. “We believe the marketplace model is well established and provides a more sustainable path to growth,” explained Rahul Bothra, Chief Financial Officer, during the post-earnings call.
Beyond Food: Building an Ecosystem
Swiggy is broadening its scope beyond food delivery, venturing into groceries, pick-up and drop services, and more. Its Swiggy Dineout business, acquired two years ago, has shown impressive growth, with GOV increasing 46 per cent year-on-year in Q2FY25. “Dineout is now within striking distance of breaking even,” Majety shared, highlighting the success of integrating the service into Swiggy’s unified app.
Majety sees Swiggy’s evolving ecosystem as an integral part of Indian life, stating, “We’re not just delivering food anymore; we’re building an ecosystem. Groceries, toys, stationery—you name it, Swiggy delivers it. We’re becoming as indispensable as chai and cricket.”
Sustainability and Future Outlook
Swiggy is also investing in sustainability, with initiatives like electric vehicle adoption for deliveries and eco-friendly packaging. Majety stressed the company’s commitment to reducing its carbon footprint and partnering with its vast network of delivery and restaurant partners to create value. “Excellence in sustainability is a journey,” he said. “Our efforts are aimed at driving user growth while ensuring we contribute positively to the environment.”
As Swiggy gears up for profitability in FY26, its focus on innovation, aggressive expansion, and consumer-centric initiatives positions it well to navigate the challenges of an intensely competitive market. Majety concluded, “We are at a unique juncture in our country’s history, where the Indian consumer’s propensity to spend for convenience is rapidly rising. Swiggy is uniquely positioned to benefit from these tailwinds. Onwards and upwards.”
