Swiggy narrows operating loss as revenue growth outpaces costs
The consolidated operating margin improved for the sixth consecutive quarter, but remained well below the sector median and net loss was Rs 791 cr.
Filed 30 Jul 2026, 15:39 IST · after market close · Swiggy Ltd (SWIGGY)
Key takeaways
- Consolidated operating margin improved 1.38 percentage points sequentially to -9.54%, extending the quarter-by-quarter recovery across the six-quarter series.
- Revenue grew 37.31% year on year while expenses rose 26.15%, narrowing the operating loss to Rs 650 cr from Rs 954 cr.
- Swiggy remained the second-lowest-margin company among 45 reported Consumer Discretionary peers, at 24.41 percentage points below the 14.87% sector median.
Price around the results
Operating loss narrows on faster revenue growth
Swiggy's consolidated revenue growth outpaced expense growth in both comparisons: 37.31% versus 26.15% year on year and 6.72% versus 5.40% sequentially. That operating leverage reduced the operating loss to Rs 650 cr and lifted operating margin by 9.69 percentage points year on year and 1.38 percentage points sequentially. Net loss was Rs 791 cr, with no tax charge.
Margin recovery continues, but the gap to peers is wide
Operating margin has improved in every quarter across the six-quarter series, from -21.81% in Q4FY25 to -9.54% in Q1FY27. The latest margin was still 24.41 percentage points below the 14.87% median for the 45 Consumer Discretionary peers that had reported, leaving Swiggy second from the bottom. Interest expense fell 5.36% sequentially, while depreciation fell 4.49%.
Other income did not change the loss outcome
Other income was Rs 210 cr, but the company still reported a pre-tax loss of Rs 791 cr because the operating loss remained larger. Other income represented -26.55% of pre-tax profit in the reported calculation, reflecting the loss-making denominator rather than a profit contribution that changed the quarter's result. With the tax rate at 0.00%, net profit matched pre-tax profit.
No immediate market reaction; past reactions have skewed lower
The results were filed after market close, so there was no immediate market reaction to assess. After the previous seven results, the stock moved down five times and up twice, with a median absolute move of 3.18%, indicating a history tilted toward declines rather than a balanced response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,812 cr | ₹6,383 cr | +6.72% | +37.31% |
| Other income | ₹210 cr | ₹265 cr | -20.75% | +144.19% |
| Expenses | ₹7,462 cr | ₹7,080 cr | +5.40% | +26.15% |
| Operating profit | ₹-650 cr | ₹-697 cr | +6.74% | +31.87% |
| Operating margin (%) | -9.54% | -10.92% | — | — |
| Interest | ₹53 cr | ₹56 cr | -5.36% | +29.27% |
| Depreciation | ₹298 cr | ₹312 cr | -4.49% | +3.47% |
| Profit before tax | ₹-791 cr | ₹-800 cr | +1.12% | +33.92% |
| Tax | ₹0 cr | ₹0 cr | — | — |
| Net profit | ₹-791 cr | ₹-800 cr | +1.12% | +33.92% |
| EPS (₹) | ₹-2.96 | ₹-3.34 | +11.38% | — |
Operating margin of -9.54% compares with a Consumer Discretionary sector median of 14.87% across 45 peers that have reported Q1FY27.
What to watch
- Whether operating margin improves further from -9.54% next quarter.
- Whether revenue growth remains above expense growth after the 6.72% versus 5.40% sequential gap.
- Whether the Rs 210 cr of other income remains material relative to the operating loss.