Swiggy Shares Slide as Instamart Losses Offset Food Delivery Gains

Investors reacted sharply to Swiggy’s second-quarter earnings report on October 23, 2026, as the company’s stock dropped nearly 15% to ₹179.90 on the BSE. The sell-off erased approximately ₹9,000 crore in market capitalization in a single trading session, marking a significant decline for a company that has lost more than half its value since its November 2024 debut.

The Growth-Profitability Dilemma

The financial results revealed a widening divide between Swiggy’s two primary business segments. While the food delivery arm achieved record adjusted EBITDA, driven by increased advertising revenue and operational efficiencies, the Instamart quick-commerce division continued to struggle with mounting losses. Instamart reported an adjusted EBITDA loss of ₹895 crore, up from ₹849 crore during the same period last year.

The company’s consolidated net loss narrowed to ₹922 crore from ₹1,092 crore a year earlier, though it represented a sequential increase from the ₹791 crore loss reported in the previous quarter. Revenue from operations rose 36.1% year-over-year to ₹7,571 crore.

Instamart Performance Metrics

Despite the financial strain, Instamart demonstrated growth in key operational areas. The division’s net order value increased by 13.4% sequentially to reach ₹6,594 crore. Total orders rose 29.3% year-over-year to 130 million, with the user base expanding by 23% to 14.8 million monthly transacting users.

Management attributed these figures to higher order frequency and improved customer retention. The company’s strategy involves expanding into fresh produce and staples to encourage recurring purchases. However, this expansion has come at a financial cost, with Instamart reporting a contribution margin of -1.0% of gross order value. The data indicates that the company continues to dedicate substantial capital toward promotions, pricing, and infrastructure to secure market share.