Restaurant India News: Swiggy Q3 FY Results Show Strong Revenue Growth, Rising Costs Impact Profitability

Swiggy reported a net loss of Rs 1,065 crore for the October–December quarter, widening from a loss of Rs 800 crore in the same period last year, according to its financial results announced after market hours on Thursday. The higher loss came despite strong revenue growth, largely driven by continued momentum in the company’s quick-commerce business.

Consolidated revenue from operations rose 54 percent year-on-year to Rs 6,148 crore during the quarter, compared with Rs 3,993 crore a year earlier. On a sequential basis, revenue increased 10.55 percent from Rs 5,561 crore reported in the September quarter. While losses widened on a year-on-year basis, they narrowed slightly compared with the Rs 1,092 crore loss recorded in the previous quarter.

The pressure on profitability was largely due to higher operating costs, with expenses rising 49 percent year-on-year to Rs 7,298 crore. Adjusted EBITDA loss increased to Rs 712 crore from Rs 490 crore in the year-ago period.

Swiggy’s quick-commerce segment continued to outperform its food delivery business. Gross order value in quick commerce rose 103.2 percent year-on-year and 13 percent quarter-on-quarter to Rs 7,938 crore, marking the fourth straight quarter of more than 100 percent year-on-year growth. During the quarter, the company added 0.8 million monthly transacting users and expanded its darkstore network by 34 stores to a total of 136 across 31 cities. The total active darkstore area increased to 4.8 million square feet.

Average order value in quick commerce increased around 40 percent year-on-year to Rs 746, supported by a wider mix of non-grocery categories and higher basket sizes. Contribution margin improved by 9 basis points sequentially and 208 basis points year-on-year to minus 2.5 percent. Adjusted EBITDA margin improved by 65 basis points quarter-on-quarter to minus 11.4 percent, although losses increased by Rs 59 crore sequentially to Rs 908 crore.

The food delivery business posted steady growth during the quarter, with gross order value rising 20.5 percent year-on-year to Rs 8,959 crore, the fastest growth recorded by the segment in the past three years. Monthly transacting users increased 22 percent year-on-year to 18.1 million, driven by stronger user additions.

Adjusted EBITDA for the food delivery segment improved 13.1 percent sequentially to Rs 272 crore. The adjusted EBITDA margin expanded to 3 percent of gross order value, marking its highest level in the last two years.