Swiggy reports Q2 FY27 loss increase despite B2C growth

Swiggy Limited

reported a mixed Q2 FY27 performance with consolidated adjusted EBITDA losses widening to Rs 760 crore despite a 25 percent year-on-year increase in B2C gross order value to Rs 20,793 ***** delivery margins strengthened further, with EBITDA growing 42 percent year-on-year to Rs 341 crore and margins expanding 58 bps to 3.4 percent. Conversely, Instamart experienced an acceleration in quick commerce growth with net order value rising 34.8 percent year-on-year to Rs 6,594 crore, but absolute EBITDA losses widened to Rs 895 crore as customer acquisition costs offset dark store productivity gains. While top-line growth is reviving, the core issue lies in unit economics. Promotional spending continues to erode quick commerce contribution margins, which slipped 82 bps sequentially to negative 1 percent of gross order value. Management plans to shift toward an inventory-owned model by mid-Q3 FY27 to capture an expected 80 bps contribution margin improvement, but achieving actual break-even requires a massive scale-up to an annualized net order value of roughly Rs 60,000 crore alongside Rs 30 in contribution per order. At a current price of Rs 176, the stock trades at a 31 percent valuation discount to Zomato, reflecting deep market skepticism regarding quick commerce profitability. Investors should monitor whether upcoming inventory transitions successfully curb cash burn without sacrificing growth momentum. Close:Maintain a wait-and-watch approach until quick commerce shows structural reduction in absolute losses and sustainable positive unit economics.