Swiggy Ltd Avoid Buying Till Profitblity Comes

Swiggy delivered mixed Q2FY27 results, with strong revenue growth and improving food delivery profitability, offset by persistent consolidated losses and heavy quick-commerce investments. Financial Performance: Revenue grew 36% YoY to ₹7,571 crore from ₹5,561 crore. Net loss narrowed 15.6% YoY to ₹922 crore but widened sequentially from ₹791 crore in Q1FY27. Expenses rose nearly 30% YoY to ₹8,703 crore, reflecting continued investment intensity. Food Delivery – Improving Profitability: Gross order value (GOV) grew 17.7% YoY to ₹10,054 crore. Monthly transacting users increased 15.2% to 19.8 million. Adjusted EBITDA rose ₹101 crore YoY to ₹341 crore, with margins improving 58 bps to 3.4% of GOV, strengthening the segment’s role as a profit driver. Instamart – Growth vs Losses: GOV increased 16.7% QoQ to ₹9,230 crore, while net order value grew 31.4% YoY to ₹6,594 crore. The dark-store network expanded to 1,240. Contribution margin improved 157 bps YoY to -1% of GOV but declined 82 bps QoQ. Adjusted EBITDA margin remained negative at -9.7%, with a quarterly loss of ₹895 crore. Outlook & Investment View: Food delivery operating leverage is improving, while Toing may support customer acquisition. Out-of-home consumption remained profitable for the seventh consecutive quarter, with GOV rising 34.9% YoY to ₹1,508 crore. However, widening sequential losses and weakening quarterly contribution margins warrant caution. Eternal reported a 92% YoY profit increase to ₹125 crore, while revenue rose 78% to ₹24,138 crore, intensifying competitive pressure. Investor Takeaway: Swiggy’s growth remains encouraging, but sustainable consolidated profitability is unproven. Monitor Instamart’s unit economics, dark-store productivity, food delivery margins and loss reduction before assigning a higher valuation premium.