Swiggy Q4: Losses double to Rs 1,081 crore despite 45% revenue growth

Time of India

09-05-2025

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Instamart
Out-of-Home Consumption
Food delivery platform Swiggy nearly doubled its losses in the fourth quarter to Rs 1,081 crore, compared with Rs 554 crore in the same period last year. Meanwhile, revenue from operations rose 45% year-on-year to Rs 4,410 crore.Swiggy's losses widened primarily due to aggressive spending on its quick commerce delivery business, Instamart, as competition from rivals Blinkit and Zepto intensified. The company ramped up investments in customer acquisition, dark store expansion, and marketing to defend its market share, leading to higher operating costs.The gross order value (GOV) surged 40% YoY to Rs 12,888 crore in Q4FY25, driven by strong growth across its business verticals. However, the company's consolidated adjusted EBITDA loss widened to Rs 732 crore, due to ramp-up of investments in Instamart.The food delivery business reported a 17.6% YoY growth in GOV, reaching Rs 7,347 crore. Adjusted EBITDA margins for the segment improved to 2.9% of GOV, compared with just 0.5% a year ago.The growth was supported by innovative offerings, including the premium subscription program One BLCK and faster deliveries through the Bolt service, which now powers 12% of all food delivery orders.Quick-commerce, which operates under the Instamart brand, continued its rapid expansion, with GOV growing 101% YoY to Rs 4,670 crore. The business added 316 new dark stores, exceeding the cumulative dark stores added over the past eight quarters, and expanded its service footprint to 124 cities.Despite the growth, Instamart's contribution margin declined to -5.6%, compared to -4.6% in the previous quarter, as Swiggy ramped up customer acquisition and network expansion.Adjusted EBITDA loss for Instamart rose to Rs 840 crore, driven by higher operating costs associated with new stores and aggressive market expansion.Swiggy's out-of-home consumption segment turned profitable, recording a 42% YoY growth in GOV and achieving an adjusted EBITDA margin of 0.3% of GOV.On the user front, the platform's average monthly transacting users (MTUs) grew 35% YoY to reach 19.8 million, with 35% of users utilising more than one service on the platform. This multi-service usage has been 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.The company said its focus on scaling Instamart, expanding its out-of-home consumption business, and improving efficiencies in food delivery are expected to remain key growth drivers in the coming quarters. However, the challenge of managing losses in the quick-commerce segment will be a critical area to watch.On Friday, Swiggy shares closed 0.2% lower at Rs 314.4 on NSE.