SWIGGYNSEQ4 FY26May 14, 2026

Swiggy Limited

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0executives

Key numbers — 40 extracted

rs,

categories. Noice is one route to maybe give access to great quality bread or eggs to our consumers, working with the brand to open up something in the Triply category and an attempt to upgrade in th

10%

erstand you can't give exact numbers, but when we directionally think about it, is it going to be 10%-20% of NOV or is it going to be much, much higher? Rahul Bothra: So Sachin, Rahul here. I think

20%

and you can't give exact numbers, but when we directionally think about it, is it going to be 10%-20% of NOV or is it going to be much, much higher? Rahul Bothra: So Sachin, Rahul here. I think it

INR1

in: Understood. And one last question from my side. You have a medium-term guidance here now of INR1 trillion in quick commerce. And I think you've said something to the effect that you'll get to aro

INR500 billion

lion in quick commerce. And I think you've said something to the effect that you'll get to around INR500 billion, double the current pace without adding too many stores. So in general, is the INR500 billion to

35%

e have built and where we see this going. So even if you take conservative CAGR estimates of say, 35%-50% in this business, we can potentially get to INR1 lakh crores in between 3.5 to 5 years, right

50%

ve built and where we see this going. So even if you take conservative CAGR estimates of say, 35%-50% in this business, we can potentially get to INR1 lakh crores in between 3.5 to 5 years, right, de

INR1 lakh crore

you take conservative CAGR estimates of say, 35%-50% in this business, we can potentially get to INR1 lakh crores in between 3.5 to 5 years, right, depending on how the overall market growth really plays out.

18%

more predictable. And we have continued to guide two things there. One is a medium-term growth of 18% to 20% and an EBITDA margin of steady state 5%. Now the question is that there is a large part

two things there. One is a medium-term growth of 18% to 20% and an EBITDA margin of steady state 5%. Now the question is that there is a large part of India, which has never tasted Food Delivery or

0.5 million

Jignanshu Gor: That's helpful. And last one small question on quick commerce. I think we added 0.5 million MTUs despite not adding stores. So what would your sort of view be on what drove this per store

90%

e, we find ourselves well distributed in these geographies. And we are catering to greater than 90% of the demand. So store addition from here is for more densification or a choice that we make whe

Guidance — 20 items

Sumant Sharma

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 audit, review or examination procedures.”

Sachin Salgaonkar

“And where do we expect that proportion to be as a percentage of NOV in terms of differentiated offerings?”

Sriharsha Majety

“Unfortunately, at this point, we will be unable to share a lot of details.”

Vijit Jain

“You have a medium-term guidance here now of INR1 trillion in quick commerce.”

Vijit Jain

“Is there geographic expansion on the cards beyond FY27?”

Rahul Bothra

“So I think what we are really drawing out the medium-term guidance here is in terms of the size of the business that we have built and where we see this going.”

Rahul Bothra

“So even if you take conservative CAGR estimates of say, 35%-50% in this business, we can potentially get to INR1 lakh crores in between 3.5 to 5 years, right, depending on how the overall market growth really plays out.”

Rahul Bothra

“So for us, this is really establishing the size of the prize that we are going after and also establishing the overall contribution margin pool and the EBITDA margin pool that we can clearly see from the business that we have built, along with the reiteration of our guidance of achieving breakeven in the current quarter, and we would have moved it massively by close to 5.5 percentage points over the last year itself.”

Sriharsha Majety

“We've also given this ambition for what we want in the medium term to also help explain any decisions that we will be making because this is the framework that we've used in the past.”

Rohit Kapoor

“One is a medium-term growth of 18% to 20% and an EBITDA margin of steady state 5%.”

Risks & concerns — 5 flagged

So right now, we are seeing a slowdown in sort of overall growth, and I see that you've made the choice between sort of growth and profitability.

— Aditya Soman

The growth that we will see, the one thing that will happen after we reach contribution margin breakeven is that any kind of headwind that we had created because we had to reach this positive contribution growth will go away, and that will unlock some more aspects of growth, which we continue to foresee happening from the next quarter onwards.

— Amitesh Jha

In that regard, if you were to sort of seek some market share and hypothetically, if this competitive intensity sort of remains, say, for another 3, 6, 9 months, isn't there a risk that some of your users who are sort of maybe experimenting there to other platforms will basically then permanently shift and hence, to regain them will become more expensive later on?

— Gaurav Malhotra

So that did probably offset some bit of the cost pressure.

— Rohit Kapoor

The headwind that we have on our MTU growth now is right now specifically related to removal of the consumer base that transacts very infrequently with our platform.

— Amitesh Jha

Q&A — 13 exchanges

The first question is about some of the comments you guys mentioned in the shareholders’ letter about doubling down on differentiation. Can you help us understand 3-4 areas of differentiation for you guys versus competition?

Sriharsha Majety

Harsha here. Talking about a few examples on how differentiation can look like in the category. Even in the shareholders’ letter, we talked about one such example, which is Noice that is our clean label brand. Noice operates in categories such as bread, eggs, etc.. I can just take the 3-4 examples with what we've done with Noice only. In the case of eggs, you will find high protein eggs that are coming with much better quality feed for the animals that just makes a better egg, that is an updated version. If you think about bread, a lot more freshly baked bread with much lesser preservatives th

A couple of questions from my side. So first, with this private label and with Noice that you spoke about, is that contribution margin positive for you in quick commerce, private label as a whole or specific brands within that? That's the first question. And I'll just follow up with one more?

Sriharsha Majety

On the first question. For us, as we've talked about, Noice is for us an attempt to actually build on the differentiated assortment and a tool for us to improve stickiness and repeats and engagement on the platform. It's not a margin maximizing equation. having said that it is margin positive. As you see, it's not in the value play, right, Vijit. So what we are not trying to do is think of this as another commoditized play where you make an additional couple of percentage points margins. This is a differentiated offering. This could be of even higher value and therefore, more contribution marg

My question is on Food Delivery. So we've had phenomenal growth in Food Delivery. So one just clarification, all our new experiments on Food Delivery, whether it is Toing, 99, etc., they are all included in the financials for Food Delivery and both growth as well as margins. Is that fair?

Rohit Kapoor

Rohit here. Everything that you read about, which is Bolt, 99 store, EatRight, those are all included in our core Food Delivery platform financials. Toing is a completely different business. And it is at a very different stage of testing and evolution. That is not in the Food Delivery that comes under the innovations bucket as you see. Okay. Fair. All right. Going ahead, how do we think of interplay between Toing and Food Delivery, right? We've discussed why we needed different apps. I think that's fair. But even on Food Delivery, we have 99 store and other parts, which are creating a differen

So just two questions. Firstly, again, on Toing. From some of the third-party data, we are seeing that the Monthly Active Users (MAU) are almost as much as one-third of the main Swiggy app. One, would that data be accurate in terms of the adoption of Toing? And second, if that's the case, then would a significant chunk of the losses in platform innovation be from Toing at this point?

Rahul Bothra

Rahul here. I think we don't measure really around MAU. I think for us, the monthly transacting user is really the north star that we see. And honestly, a number of downloads or a number of app opens is just a data point. And as Rohit mentioned, it's very early days in Toing's journey to be able to establish any clear metrics there. In terms of the platform innovation, this was the quarter that we also shut down SNACC operations. A large part of the cost that you see in that P&L is related to the SNACC operations getting closed. No, very clear. And then a second question on the quick commerce

Nice to see the acceleration on Food Delivery. I want to start there. Thanks for the comments on Toing. I wanted to understand in the medium term, are you not potentially cannibalizing the main opportunity for this will be the parent food app as so far, it doesn't seem like you're adding new menus and new restaurants, which is potentially reducing your fees, delivery fees or platform fees there?

Sriharsha Majety

As Rohit and Rahul have already mentioned, it's still too early to figure out what is going to happen, when will it happen, etc. I do think that it's also important because we are not the only player. There are folks who are also attempting what this business model can unlock as challenges outside the category. I think just by being able to do it early, we also probably have an opportunity of understanding what goes on. But I think it's too early to comment on what happens in the medium term. Of course, the idea is that we progress and pull forward only if it feels like something that unlocks

I had a couple of follow-up questions. Number one, Rahul, you did mention about focusing and targeting good growth. One of your peers is talking about more like a 60% NOV CAGR for 3 years. And Harsha did mention in the last question answer, it's also about maintaining market share and not giving market share. So is that fair to assume that kind of a growth we could also expect from Swiggy while the focus towards profitability sort of continues?

Sriharsha Majety

I think there is a thing about short-term market share and long-term market share. Even if you look at the category around today, there's a player who's probably at 4%-5% of contribution. We have our own guidance of getting closer to zero as we've talked about. There are a bunch of players in the -10%, -15%. So maybe only talking about market share in the next quarter probably takes away from what's going to play out over the next few years. We don't have a stated desire to lose market share. We believe that our chances to improve long-term market share come from purposefully balancing this pa

Just a couple of questions. In the shareholders’ letter, and I think so this question was raised earlier as well, you have mentioned that as you sort of will achieve contribution margin breakeven, you will possibly look to accelerate growth. So does that mean that essentially the contribution margin breakeven becomes like the floor and anything extra you sort of gain from there will be then reinvested back into the business, at least in the medium term. Is that understanding correct?

Amitesh Jha

Even last time when we were speaking about where we will invest and where we will not. We have always maintained that in the area that we believe investment is right, we will keep on investing. And in the area where we believe that it is buying growth, we will essentially not be doing it. Medium term, we will keep it very, very calibrated. Things that are essentially working out, we will go behind it as well. There is not a need for us to necessarily reinvest contribution margin gains going forward. But if we believe that there are areas where it will make sense to invest, we will keep on doin

A couple of quick questions from me. First one is we had guidance that we will breakeven at the EBITDA level in four quarters from contribution breakeven. So, does that still hold? And one more thing is, in this quarter, you've spoken about the contribution margin for the month of March. Now when we say contribution breakeven, you do mean for the full quarter, right?

Rahul Bothra

So, on the first question, Abhisek, I think we have carefully decided not to speculate on when EBITDA profitability will come through. As we have rightly said that having achieved the scale that we have, it's also good to harness a larger share of the growth that is going to come through. And again, what is the right kind of growth, right? And that's where we will continue to invest. So, I think EBITDA profitability will be a choice that will be made at a later point in time and again, depending on how the market forces play out. On the second question, yes, you're right. This is for the entir

A few questions. First, on the Food Delivery side, this recent increase in commercial gas prices, do you think there could be some impact on volumes in the near term because of this issue for aggregators?

Rohit Kapoor

I think the LPG crisis started sometime in the first week of March. And there was an impact on the restaurant industry as we reported in the media in terms of availability of cylinders, etc. But two things, one, we've seen a slight bit of price increase because of that, which the restaurant industry has taken. We can see that on our platform, which is not significant and it's less than 0.5%. So that did probably offset some bit of the cost pressure. From our standpoint, I think we were able to navigate this throughout for our support to restaurants in terms of increased analytics, increased ab

My first question is on understanding the trends around the retention ratio in the quick commerce business for your MTUs. At the peak, we were adding 3 million consumers a quarter. Right now, we are adding 0.5 million. And our marketing spend largely would have remained intact. So, it appears that the gross addition would have remained largely the same and the retention ratio would have come down for existing users. Is there any metric to get a comfort on how the retention ratio has changed in the last couple of quarters? Any repeat business percentage now versus about a year back?

Rahul Bothra

One of the things that we have decided to do is really churn out some of these low AOV customers who have alternative platform choices today, from whom they are getting serviced. So, there's an active churn that we are seeing in that segment of the users. At the same time, the cohorts that we care about, which are the high spenders, higher frequency ones, those continuously are seeing upticks. I think a couple of quarters back, we had shared the GOV retention for these acquired users, and we will share that periodically going forward. But a large part of that user growth reduction that you hav

So, the first question is we talked about breakeven next quarter, which is a swing of almost 180 bps in terms of your contribution margin. Now that's higher than what we have done over the last eight quarters. So, what are the big drivers for a massive swing? Would it be discount reduction? Are there other factors which are at play?

Rahul Bothra

We have called out in the letter, so while 180 basis points was the average for the quarter, we exited the month of March with 110 basis points. And this was, as we had mentioned, there were certain experiments that we were running on the monetization side that we have reversed. And therefore, on an exit basis, we got a better pickup. So the journey itself is more like 100 basis points versus 180 basis points. And now that April is behind us, we are pretty confident of being able to achieve that.. Just to complete, I think there is monetization, there's advertising, there's operating leverage.

My question was more on the quick commerce midterm guidance. So as you said, the guidance is for INR1 lakh crore in NOV in probably 3 to 6 years. I actually wanted to understand the drivers in terms of the NOV, user data and frequency. So frequency for sure has fallen for you guys to 2.8x versus what you guys were doing, probably it was 30% higher. But let's say, if I even think about 3.5-3.6x, the number of users that you would need at the current state of NOV would be somewhere between 45-50 million. And if we look at the largest player in the market, their guidance is also to reach in a way

Amitesh Jha

One of the ways to think about growth is exactly in the terms which you spoke about, how many users we add, how many times they typically transact and what is the NOV of those users. We believe that the movement will happen, obviously, one part on the frequency as well. The frequency that we are at right now is the right frequency to do medium-term planning and there is a movement that we expect to happen on NOV as well. That will also drive some part of that particular growth. But as you rightly mentioned, the majority of that number will come from the acquired customers that we have. Now we

Just one question. If I look at your cash flow statement, despite the improvement in margin in Food Delivery and reduction of losses in Quick Commerce, the absolute kind of negative number in cash from operations remains elevated. Free cash flow annualized is about, say, negative $400 million so, I just wanted your thoughts on that scale of loss?

Rahul Bothra

Yes. so, there are a couple of things. One is on capex, we have already said that we have seen heightened levels of investment over the last 4-8 quarters, which will start to moderate as we are behind on the overall warehousing investments that we have done. Some of the working capital changes are cyclical, and you should expect us to sequentially improve that in the coming year.

Speaking time

Rahul Bothra

Moderator

Amitesh Jha

Sriharsha Majety

Sachin Salgaonkar

Vijit Jain

Vivek Maheshwari

Rohit Kapoor

Ashwin Mehta

Jignanshu Gor

Opening remarks

Sumant Sharma

Thank you, operator. Hello, everyone, and welcome to the Q4 and FY26 Earnings Conference Call of Swiggy Limited. 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 may 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 audit, review or examination procedures. Swiggy does not guarantee these statements and is not obliged to update them at any time. Joining us 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. Moderator, you can please

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