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Growth Vs Profitability: Swiggy’s Tug-Of-War

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Growth Vs Profitability: Swiggy’s Tug-Of-War

Swiggy’s results for the second quarter (Q2) of the financial year 2026-27 (FY27) show that the tug of war between growth and profitability is intensifying, as Instamart’s mounting losses threaten to overshadow the improving performance of its food-delivery business.

On October 23, 2026, the company’s shares fell around 15% to ₹179.90 on the BSE, wiping out roughly ₹9,000 Cr in market capitalisation in a single session. The sell-off came after Swiggy reported its results, with widening losses at Instamart overshadowing improving profitability in its food delivery business. The stock has also lost more than half its value since its market debut in November 2024. 

The company’s revenue from operations increased 36.1% YoY to ₹7,571 Cr in the September quarter. Its consolidated net loss narrowed to ₹922 Cr from ₹1,092 Cr a year earlier, but widened from ₹791 Cr in the preceding quarter. 

The contrast within the business is becoming more pronounced. Food delivery reported record adjusted EBITDA, supported by advertising revenue and delivery efficiencies. Instamart, meanwhile, saw its adjusted EBITDA loss widen to ₹895 Cr from ₹849 Cr a year earlier, even as its net order value (NOV) grew 13.4% sequentially.

This has put investors in a spot, questioning whether Swiggy’s rising investments today can deliver sustainable returns tomorrow. Or will the coming quarters reveal whether Instamart’s renewed growth can translate into better margins? But before that…

Instamart’s Q2 numbers show a recovery in growth momentum, but not yet a corresponding improvement in profitability. 5% growth in the preceding quarter.



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