Swiggy had a mixed quarter in Q2 FY27. While its food delivery business delivered record profits and margins, rising investments in Instamart and newer businesses continued to stifle its bottom line.

Instamart’s Burn Continues: Swiggy’s quick commerce expansion continued to put pressure on its bottom line despite its operating revenue jumping 33% YoY to ₹1,306 Cr. However, its adjusted EBITDA loss widened to ₹895 Cr, as Swiggy continued to invest in customer acquisition and store expansion. The company believes that Instamart’s adjusted EBITDA losses peaked in Q2 FY27.

The Inventory-Led Shift: The company is eyeing pivoting Instamart to an inventory-led model by mid-Q3 FY27, with the transition expected to take two to three quarters. This will uplift the vertical’s contribution margin by 80 basis points once fully implemented while shortening the working capital cycle by 8-10 days.

Food Delivery Leads Charts: Swiggy’s food delivery business reported its highest-ever profits and margins in Q2 FY27, with revenue rising 22% YoY to ₹2,338 Cr and operating profit jumping 39% to ₹349 Cr. The company is also pushing into affordable meals through Toing, its standalone app, which it says has seen encouraging early adoption, with 2 out of 3 users being either new to Swiggy or long inactive on the platform.

As Swiggy continues to scale its quick commerce operations and newer offerings such as Toing, here is a closer look at how the foodtech giant fared in Q2 FY27.

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