Swiggy's Q1 FY26 Losses Widen to ₹1,197 Cr; Mulls Rapido Stake Exit

Food and grocery delivery platform Swiggy has reported nearly 96% increase (year-on-year) in its net losses to ₹1,197 crore in the first quarter of fiscal year 2026. The number was ₹611 crore in the same period a year ago.

Its net losses were ₹1,081 crore in Q4 FY25 due to rapid expansion in its quick commerce arm ‘Instamart’. On the other hand, Swiggy’s revenue from operations surged 54% YoY to Rs 4,971 in Q1 FY26, as compared to ₹3,222 crore a year ago.

Swiggy reported an adjusted EBITDA loss of ₹813 crore for the quarter ending June FY26. This marked a sharp 134% increase from ₹348 crore in the same period last year. On a sequential basis, the loss widened from ₹732 crore in the previous quarter.

Its total expenses surged nearly 60% year-on-year to ₹6,244 crore, compared to ₹3,908 crore in Q1 FY25 and ₹5,609.6 crore in the March quarter.

Despite the rising losses, Swiggy saw robust user growth. The platform’s average monthly transacting users (MTUs) climbed 35.2% YoY to 21.6 million. On a quarterly basis, it added 1.2 million MTUs—taking the count to 16.3 million, the highest single-quarter addition in two years.

In its core food delivery segment, revenue rose 20% YoY to ₹1,800 crore. The gross order value (GOV) of this vertical also grew by 18.8% to ₹8,086 crore, up from ₹6,808 crore a year ago.

“Swiggy’s food delivery business continues to deliver robust growth, while innovating to create new customer propositions which can open up the market further…and help our restaurant partners garner new users and incremental consumption,” said Sriharsha Majety, MD & Group CEO, Swiggy.

He also stated that focus has been on agile and calibrated network expansion; and improving wallet-share by increasing basket-size which is one of the prime determinants of long-term profitability.

Swiggy Eyes Rapido Exit

Months after Rapido entered the food delivery segment, Swiggy is mulling divesting its stake in the ride-hailing unicorn, the company made this announcement in a letter to shareholders. Currently, Swiggy has about 12% stake in Rapido.

In its Q1 letter, Swiggy stated that its stake in Rapido has appreciated significantly since its investment. However, the company is now “actively re-evaluating” the investment due to Rapido’s entry in its bread-and-butter food delivery industry.

“Rapido, one of our investee companies, has announced their intention to enter the food delivery space. Having scaled up from a bike-taxi player to a full-fledged mobility platform,  Rapido is now the largest mobility player in India by rides, and has been a disruptor in its space. As a shareholder, we are extremely happy with their success and value-creation; but do acknowledge a potential conflict of interest that may arise in the future,” the company said.

While ramping up investments in its quick commerce arm, Swiggy indicated that selling its stake in Rapido could strengthen its cash position. The company hasn’t outlined a timeline but said more clarity will follow as the process unfolds.

Ride-hailing platform Rapido was expected to pilot its food delivery service ‘Ownly’ in Bengaluru this month. The start-up will further roll out the new offering in various locations, including Koramangala, HSR, and Sarjapur.

The new-age company aims to expand the service to 10 cities within the next year. Rapido has asked partner restaurants to list 4-5 dishes under ₹150 as it gears up to introduce a budget-friendly sub-₹150 category on its soon-to-launch food delivery platform.

With Ownly, Rapido is looking to take on market giants Zomato and Swiggy. It plans to build on its success in shaking up the Uber-Ola dominance in the ride-hailing space.