Newsletter
A day after rival Eternal reported its results, Swiggy released its Q2 earnings. Revenue grew sharply and its overall loss narrowed, but losses in quick commerce continued to rise.
By the numbers (YoY):
- Net loss: ₹922 crore, down from ₹1,092 crore
- Revenue: ₹5,561 crore, up 54.4%
- Operating loss, measured by EBITDA: ₹770 crore, down from ₹798 crore
- Quick-commerce revenue: ₹1,306 crore, up 33.3%
- Food-delivery revenue: ₹2,338 crore, up 21.6%
The expensive bit: Instamart’s revenue increased, but the quick-commerce business lost ₹764 crore, compared with ₹739 crore a year earlier and ₹651 crore in the previous quarter.
Swiggy is still spending heavily to attract customers. Advertising and promotional expenses reached ₹1,298 crore, up 25% from last year and 12% from the previous quarter.
It also added 69 dark stores, the local warehouses that fulfill quick-commerce orders, taking its network to 1,240 stores across 133 cities.
Food delivery offered some relief: the total value of food orders rose 18% to ₹10,054 crore. The business generated ₹341 crore in adjusted operating profit, up ₹101 crore from last year, with a margin of 3.4%.
The market reaction: Swiggy shares fell 5% to an all-time low. Eternal is now worth roughly five times as much on the stock market: ₹2.96 lakh crore versus Swiggy’s ₹58,000 crore. That gap was only a little over two times when Swiggy went public in November 2024.
