Swiggy Ltd reported a strong March quarter, with consolidated net loss narrowing to ₹800 crore from ₹1,081 crore a year ago, while revenue rose 44.7% to ₹6,383 crore from ₹4,410 crore. EBITDA loss stood at ₹697 crore versus ₹962 crore a year earlier.

Food delivery leads the recovery

A big part of the Street-facing narrative this quarter is that Swiggy’s core food delivery business is growing faster again while also becoming more profitable. Swiggy said food delivery GOV grew 22.6% year-on-year to ₹9,005 crore in Q4, marking its highest growth rate in 15 quarters, while food delivery adjusted EBITDA rose 39.8% to ₹297 crore and margin improved to 3.3% of GOV.

Management leaned heavily on that trend in its commentary. “Food delivery has grown at its strongest pace in nearly four years, crossing INR 1,000 Cr in annual adjusted EBITDA and defying scepticism around a sector slowdown, with meaningfully better margins than a year ago,” MD & group CEO Sriharsha Majety said. In the shareholder letter, the company added that this acceleration was driven more by order and user growth than by average order values, which it framed as a positive signal for demand durability.

Instamart still burns cash, but unit economics improve

Quick commerce remains the biggest drag on profitability, but Swiggy used the quarter to show that the business is moving in the right direction on margins. Instamart’s GOV rose 68.8% year-on-year to ₹7,881 crore, contribution margin improved by 65 basis points quarter-on-quarter to -1.8%, and the monthly contribution margin improved further to -1.1% in March 2026. Swiggy also said adjusted EBITDA margin in quick commerce improved to -10.9% from -11.4% in Q3, while the business posted an adjusted EBITDA loss of ₹858 crore for the quarter.

Majety said the company was staying selective rather than chasing uneconomic growth. “In quick commerce, the next phase will be defined by anticipating consumer needs, not merely fulfilling them. Unit economics continue to improve quarter on quarter, and we remain on track for contribution margin breakeven in line with our guidance,” he said. The shareholder letter went further, saying Swiggy had rolled back its no-fee campaign in January and chosen margin integrity over “vanity volume,” even if that meant a temporary slowdown in order growth.

Swiggy’s out-of-home consumption business added another positive surprise. The company said the Dineout segment delivered its first full year of profitability in FY26, with Q4 GOV rising 43% year-on-year to ₹1,245 crore and adjusted EBITDA margin improving to 0.8% of GOV. Platform MTUs rose 27.2% to 25.2 million, underscoring continued user growth across businesses.

The balance sheet also remains a key cushion as Swiggy invests through competition. The company ended March 2026 with a consolidated cash balance of ₹15,053 crore, which management said gives it room to stay “disciplined and deliberate” as it enters FY27.

Swiggy shares ended 1.18% higher at ₹282.80 apiece on the NSE on Friday. Over the past year, however, the stock has fallen more than 10%, underperforming the Nifty Midcap index, which gained nearly 17% over the same period.