Swiggy Q4 Results: Losses Double to Rs 1,081 Crore Despite 45% Revenue Growth
Food delivery giant Swiggy has reported a significant widening of losses in the fourth quarter of fiscal year 2025, even as it posted strong revenue growth. The company's losses nearly doubled to Rs 1,081 crore compared to Rs 554 crore in the same period last year, while revenue from operations surged 45% year-on-year to Rs 4,410 crore.
Growing Losses Amid Aggressive Expansion
The substantial increase in losses can be primarily attributed to Swiggy's aggressive investment strategy in its quick commerce delivery business, Instamart. As competition intensifies from rivals like Blinkit and Zepto in the rapidly evolving quick commerce space, Swiggy has ramped up spending on customer acquisition, dark store expansion, and marketing initiatives to defend its market position.
Despite these mounting losses, the company's overall business volume showed impressive growth. The gross order value (GOV) surged 40% year-on-year to reach Rs 12,888 crore in Q4FY25, reflecting strong performance across its various business verticals.
However, the consolidated adjusted EBITDA loss widened to Rs 732 crore, largely due to the significant investments being channeled into the Instamart business as part of its expansion strategy.
Food Delivery Business Shows Improvement
Swiggy's core food delivery segment demonstrated healthy growth with a 17.6% year-on-year increase in gross order value, reaching Rs 7,347 crore. More importantly, the adjusted EBITDA margins for this segment showed marked improvement, climbing to 2.9% of GOV compared to just 0.5% a year ago.
This growth has been supported by several innovative offerings, including:
- Premium subscription program One BLCK
- Faster deliveries through the Bolt service
The Bolt service has gained significant traction and now powers approximately 12% of all food delivery orders on the platform, highlighting customers' preference for speed and convenience.
Instamart: Growth at a Cost
The quick-commerce business operating under the Instamart brand continued its rapid expansion trajectory, with GOV growing an impressive 101% year-on-year to Rs 4,670 crore. During this period, Swiggy added 316 new dark stores, which exceeds the cumulative dark stores added over the previous eight quarters combined.
The service has now expanded its footprint to 124 cities across India, demonstrating Swiggy's commitment to capturing the quick commerce market. However, this aggressive expansion has come at a cost. Instamart's contribution margin declined to -5.6%, compared to -4.6% in the previous quarter, as the company invested heavily in customer acquisition and network expansion.
The adjusted EBITDA loss for Instamart rose to Rs 840 crore, driven by higher operating costs associated with new stores and market expansion initiatives.
Out-of-Home Consumption Turns Profitable
In a positive development, Swiggy's out-of-home consumption segment achieved profitability, recording a 42% year-on-year growth in GOV and achieving an adjusted EBITDA margin of 0.3% of GOV. This marks an important milestone in the company's journey toward overall profitability.
User Growth and Engagement
On the user front, the platform's average monthly transacting users (MTUs) grew 35% year-on-year to reach 19.8 million. Significantly, about 35% of these users utilize more than one service on the Swiggy platform, indicating strong cross-selling success. This multi-service usage has been identified as a key driver of customer retention and growth.
"FY25 was a year of many firsts for Swiggy, with the launch of new services like Instamart, Snacc, and Pyng," said MD & Group CEO Sriharsha Majety.
Future Outlook
Moving forward, Swiggy has indicated that its focus will remain on scaling Instamart, expanding its out-of-home consumption business, and improving efficiencies in the food delivery segment. These areas are expected to be the key growth drivers in the coming quarters.
However, managing the substantial losses in the quick-commerce segment will be a critical challenge that investors and analysts will be closely monitoring. The company's ability to balance aggressive growth with financial sustainability will likely determine its long-term success in the highly competitive food delivery and quick commerce landscape.
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