SWIGGYNSEQ2 FY26November 06, 2025

Swiggy Limited

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12analyst exchanges

0executives

Key numbers — 40 extracted

INR 1,000 crore

usiness, of course, has continued its path of profitable growth and currently is at a run rate of INR 1,000 crores on an annual basis. And in quick commerce, we have seen now this is the third continuous quarter

100%

. And in quick commerce, we have seen now this is the third continuous quarter of us delivering 100% plus GOV growth and this is way over some of the expectations that we had back in the days when w

50%

d this is way over some of the expectations that we had back in the days when we were expecting a 50% - 60% kind of growth trajectory. We've also guided and reiterated our gui

60%

is way over some of the expectations that we had back in the days when we were expecting a 50% - 60% kind of growth trajectory. We've also guided and reiterated our guidance

rs,

er assortment to these customers. So that will also come down. As a combination of these 3 factors, we do expect the margins overall to go up because typically, non-groceries have higher margins as

INR 10

here, this is Abhishek. We've improved our adjusted revenue per order, as you would have seen by INR 10 in each of Q1 and Q2 consecutively, which basically means that at the overall level, you are talki

gories as well. Kunal Vora: Understood. Just a follow-up on this. So non-grocery has moved from 9% to 26% in the last one year. Do you see it crossing even 50% in the coming couple of years?

26%

as well. Kunal Vora: Understood. Just a follow-up on this. So non-grocery has moved from 9% to 26% in the last one year. Do you see it crossing even 50% in the coming couple of years?

44 basis point

oming in the future from the baseline. If you look at the numbers, we have still grown our EBITDA 44 basis points over last quarter and the EBITDA over last quarter same year has more than doubled, right… To

110%

ivek Maheshwari: Okay. The second question is, let's say, your GOV in this quarter has gone up by 110%, give or take. And the overheads are up about 125%. Now from here on, as we go forward, how will

125%

s say, your GOV in this quarter has gone up by 110%, give or take. And the overheads are up about 125%. Now from here on, as we go forward, how will the profitability at EBITDA level improve given tha

INR 650 crore

as we go forward, how will the profitability at EBITDA level improve given that, let's say, about INR 650 crores, INR 660 crores are the overheads. So as you grow forward, will there be an operating leverage b

Guidance — 20 items

Abhishek Agarwal

opening

“Specifically, the financial guidance and pro forma information that we will provide on this call are management estimates based on certain assumptions and have not been subjected to any product review or examination procedures.”

Sachin Salgaonkar

“But broadly, I want to understand the thought process in terms of how the incremental capital will be used.”

Rahul Bothra

“We've also guided and reiterated our guidance of being able to demonstrate contribution margin profitability by June 2026 quarter.”

Rahul Bothra

“So, this is a conversation that we want to have with the Board to be able to raise this additional capital, which would be more towards growth as well as strategic reserves that we want to use on a going forward basis.”

Sachin Salgaonkar

“But again, from that perspective, any thoughts of introducing a guidance towards an EBITDA breakeven?”

Sachin Salgaonkar

“Because to your point, the sector continues to attract a lot of investments and again, any comfort what investors would get that there will be no further fundraises in that direction and the path towards profitability will be clearer despite being a slightly higher competition in terms of what you are seeing out here?”

Rahul Bothra

“We have been pioneers of launching the services, whether it's food delivery or quick commerce and continue to experiment on the side to need some of the innovation capital going forward for some of the new experiments that we do.”

Rahul Bothra

“We don't expect the need to raise any further capital if and when we were to raise this additional QIP.”

Rahul Bothra

“So there is this margin accrual that we expect over time as we continue to go deeper into the supply chain.”

Rahul Bothra

“We do expect a lot more higher margin mix to attach to these non-grocery segments from what we have seen.”

Risks & concerns — 8 flagged

And given the fact that you have mentioned in shareholders’ letter that the non-grocery component will continue to increase, do we see a continued pressure on take rate going ahead?

— Sachin Salgaonkar

Is the impact of these competing moves already in the numbers?

— Kunal Vora

So while it can have some impact due to the outside pressure, but largely, we believe that we are in control of our destiny here.

— Rahul Bothra

I looked at the cohort data, your comments on the impact of non-grocery still to play out further, as you said earlier, in this call.

— Vijit Jain

The impact of that will also be felt in the subsequent quarter.

— Amitesh Jha

That does have an impact in the current quarter in terms of pure MTU and OPD, but we believe that the retention of these consumers being higher will have a subsequent quarter impact of higher growth rate as well.

— Amitesh Jha

Just I think a related question was, was there any impact of the GST cuts in the cadence of the business?

— Ankur Rudra

But there could be some pressure on the NOV to GOV ratio, but not a lot, hence going forward.

— Amitesh Jha

Q&A — 12 exchanges

Thank you for the opportunity. I have three questions. First question is on the QIP. I know its early stages and you're still waiting for approval from management. But broadly, I want to understand the thought process in terms of how the incremental capital will be used. For example, will there be any change in strategy towards your dark store additions, which we see after Q4, it has been a slow addition out there? Or is there an intention to further expand into different areas? So, would love to understand and get an update in that direction?

Rahul Bothra

Sachin, Rahul here. So, if you've seen over the last, say, three quarters and post our IPO, the quick commerce business is where most of our investments have gone. The food delivery business, of course, has continued its path of profitable growth and currently is at a run rate of INR 1,000 crores on an annual basis. And in quick commerce, we have seen now this is the third continuous quarter of us delivering 100% plus GOV growth and this is way over some of the expectations that we had back in the days when we were expecting a 50% - 60% kind of growth trajectory. We've also guided and reiterat

You mentioned that non-grocery like electronics have doubled in terms of contribution in the last couple of quarters. What else are you looking at adding? How promising is pharmacy, which I think is a strong push now? How is the early response into pharmacy? And what's the coverage now -- that's my first question.

Amitesh Jha

Yes. So I'll just answer this question, Amitesh here. See, the strategic rationale that we have chosen is that apart from the long-tail categories where the assortment or the wide assortment really helps, we'll be in all the categories that require a decent assortment. And that is the reason our stated objective of being everything store is there. So effectively think about it as everything that you can find in the store, except for a really long tail, maybe some fashion, some home decor and all that kind of stuff. The pharmacy is obviously essentially part of it is one of those things that le

Two questions. First, to the extent you can comment because you have mentioned about the capital raise. Today's media article also talks about some raise at the subsidiary level, which is the quick commerce entity. Can you just clarify your position as I said to the extent you can?

Rahul Bothra

No. So this is being done at the holding company level. So, there is no near-term plan or any plan to raise at a subsidiary level. Okay. The second question is, let's say, your GOV in this quarter has gone up by 110%, give or take. And the overheads are up about 125%. Now from here on, as we go forward, how will the profitability at EBITDA level improve given that, let's say, about INR 650 crores, INR 660 crores are the overheads. So as you grow forward, will there be an operating leverage basically at the overheads level? Because your AOVs are already are at about 700 levels. And I would have

Congrats on a sharp improvement on CM at the QC. So Rahul, as in the past, when you gave some breakdown about how the CM actually fell in those quarters, if you could give a similar breakdown on how the CM improved from minus 4.6% to minus 2.6% across these 3 vectors, what you mentioned, which is ads and lower customer incentives and increased utilization. The reason for asking this question is I'm just trying to gauge what are the incremental levers for you over the next few quarters when you want to hit a kind of breakeven by Q1 '27.

Rahul Bothra

Absolutely. So, if you see, we have given this answer in our shareholders’ letter in terms of the breakdown of the 200 basis points. So this has come across the monetization levers as well as the operating leverage and better utilization of the stores. So going forward basis, as I said, you should expect margin improvement to continue happening. We've also guided that our store addition is not going to be in line with some of the past additions that we've done over the last 4 quarters. So that is going to drive operating leverage of throughput and efficiency for us. So you should expect that t

So, this quarter contribution margin in quick commerce improved 200 bps and you called out all those different levers and you're only minus 2.6% now. I looked at the cohort data, your comments on the impact of non-grocery still to play out further, as you said earlier, in this call. So how would you characterize the potential for CM to break even well before the June '26 deadline? I mean at this pace, you could do it in December or in March quarter itself, right? So that's my first question.

Rahul Bothra

So I think we have given in the past a certain guidance around, and we do want to retain flexibility as some of the participants have mentioned that competition intensity goes up and down depending on how much investments are happening in the sector. Currently, we do want to retain our guidance. Now whether that happens one quarter ahead or not is something that we are not able to comment on today. Fair enough. Now my second question is, so your non-grocery have gone up quite meaningfully this quarter as well, congratulations on that. I'm guessing some part of it would have been definitely aid

Congrats on a good set of numbers. So I'm just looking at the contribution margin and I just want to double down on what Vijit was also asking early on. Despite the Quick India Sale Movement, you have shown almost 200 basis point sequential improvement in contribution margin and incrementally not having -- I mean, of course, a lot of those discounts might be funded by the brands, and I get that. But incrementally, you have just a 250-basis points kind of effort to be done to reach your guidance. But I'm just asking a bit of a converse of what the earlier participant asked. In case you reached

Rahul Bothra

No, I think Sudheer, that's exactly what we intend to do, which is retain the flexibility to be able to invest it back for even higher growth from what we see. At the same time, I think there is a journey that we have to traverse. We've done well over the past couple of quarters to get it to negative 2.5% from the negative 5.5% peak that we had. And I think from here on, while there is going to be all the positives, if there are negative headwinds coming from either some competition activity, we do want to retain the flexibility and therefore, the guidance stays for the end of the June '26 qua

I just want to know what's the breakeven period for any new store at the CM level for the quick commerce business?

Rahul Bothra

So it varies between 800 to 1,000 orders a day. No, I was asking time period. And in terms of time line, it could be depending on, again, the hyper local areas, it could anywhere be between, say, 6 months to 12 months. So, you shared a pretty interesting data point on the percentage of total active stores, which are greater than 3% and 0% to 3%, which put together 25%. So, correct me if I'm wrong, so only 25% of the stores are positive CM and the remaining 75% are still in red at the CM level. So, I was not sure if this interpretation is correct or not. That's correct. As we have written in th

First question from me. You mentioned in the letter that your current store network can support double the orders. So, based on trends that you are witnessing, do you have any sort of time line in mind as to when this happens?

Amitesh Jha

We are seeing a healthy growth rate of our GOV around 20%+QoQ for the last two quarters. We see a movement in our OPD in the subsequent quarters as well. We can assume a similar kind of growth rate. So if we assume a similar growth rate, we should see these numbers being hit within a year's time. But of course, what also happens is that it is lopsided. Not every store will be at the same rate. There are stores that will hit the maximum capacity sooner, which means we'll have to open new stores. So we believe that in the next two quarters, there will be a few stores that will reach those orders

Just a few questions from my side. On the ad revenues in the restaurants, I was under the impression that the ad revenues from restaurants typically would be, say lower than what it would be say for a quick commerce business is because not every restaurant typically would spend and generally say most if not all brands tend to spend. So the greater than 4% number looks a little bit high in that context. So if you could just give us some sense as to the long-term quick commerce is 6%-7% and the restaurants are like 4% plus, how should we sort of think of these two numbers in that context?

Rohit Kapoor

This is Rohit here. Is the question more around expansion possibilities in food? Or is it a comparison with quick commerce? I just want to sharpen my answer. So basically, I was under the impression that the ad revenue contribution in the food delivery would be lower than quick commerce. And if the restaurant, the food delivery itself is 4% plus, then shouldn't the long-term quick commerce be then more than 6%-7% right? Because the understanding is that most of the brands typically tend to spend on quick commerce, but not all restaurants spend on food delivery from an advertisement perspective

Good to see cash burn shrink rapidly this quarter. Firstly, on quick commerce, I noticed that while GOV growth is quite strong, the NOV growth is very similar to last quarter, about 17% to 18%. And the MTU growth was probably a bit lighter at about 8%-9% versus 11% last time. I'm just curious how the sale event may have helped you in terms of user acquisition and growth in general? And also, if there's any sort of impact on GST on the business and how that might impact you in 3Q?

Amitesh Jha

Yes. I think there are multiple questions. I'll take it one by one. QIM obviously happened at the end of the quarter. The impact of that will also be felt in the subsequent quarter. See, one other thing which is happening is that there is a lot of adoption from our consumers to the category where the GOV drop is higher, and which is the reason why you see that divergence is also playing out. The other thing is that our MTU growth is built primarily on the quality of the consumer base that we wanted. If you remember last time, when we looked at the retro the last quarter, one of the things that

So two questions. Firstly, on the loyalty program, Swiggy One and Swiggy One BLCK. Can you give us a sense of what proportion of Instamart customers are coming from the loyalty program? And then maybe in the related lines that you've also split your app for Instamart, I mean, between the common app and a separate app. So can we get a sense of what proportion of customers is coming on the separate app? And has it accelerated as that separate app has been sort of extended?

Rahul Bothra

So unfortunately, we won't be able to share specific numbers as these are sensitive. At the same time, we can tell you that the separate app strategy has worked out really well for us, so especially in some of these newer cities and new to Swiggy customer acquisition has been pretty strong on the separate app. All right. And maybe then if you can't give me specific numbers, and also in terms of the split between sort of food delivery customers and new to Swiggy customers, would that be -- would that now be incrementally much larger in terms of sort of the proportion of new to Swiggy customers

Congratulations on a great set of numbers. So one question is that today, there was an article which came out where one of your competitors claimed that their order numbers are almost 40% higher than you during the Diwali season. And they are basically saying that in which case, there is no way that you can be higher on an NOV basis. So if you could give some clarity on that, plus if you would have any data, which would give clarity on what is the burn rate for the overall segment, these two data points will be very helpful.

Sriharsha Majety

Harsha here. So firstly, I mean, even in the past, when we've been asked along this line, it's easy to compare with a publicly listed peer, but it's very hard to look at the numbers of privately listed peers and you can understand their definitions of how they're calculating everything that they're suggesting. So that just makes it really, really hard, but at the same time, volume growth and getting volume growth and buying it in orders by choosing the path of, let's say, very poor average order values and Contribution is a choice, but it's not really a choice we want to make. In the end, we a

Speaking time

Rahul Bothra

Moderator

Amitesh Jha

Gaurav Rateria

Sachin Salgaonkar

Rohit Kapoor

Gaurav Malhotra

Kunal Vora

Vivek Maheshwari

Garima Mishra

Opening remarks

Abhishek Agarwal

Thank you, operator. Hello, everyone, and welcome to the second quarter FY 2026 Earnings Call of Swiggy. Our financial results and shareholders' letter have been published on the Exchanges, and the information pack has been placed in the Investor Relations section of our website, www.swiggy.com. We would like to inform you that the management can make certain comments on this call that one could deem forward-looking statements. Specifically, the financial guidance and pro forma information that we will provide on this call are management estimates based on certain assumptions and have not been subjected to any product review or examination procedures. Swiggy does not guarantee these statements and is not obliged to update them at any time.

Joining me on the call today are

Sriharsha Majety – MD and Group CEO, Rahul Bothra – our CFO, Rohit Kapoor – CEO of Food Mar ketplace, and Amitesh Jha – CEO of Instamart. With this brief preamble, let us start the Q&A. Operator, you can go ahead please.

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