Swiggy’s sequential loss widens as costs outpace revenue growth
Revenue growth remained ahead year-on-year, but the quarter marked the first sequential margin setback after four quarters of improvement.
Filed 22 Oct 2026, 15:45 IST · after market close · Swiggy Ltd (SWIGGY)
Key takeaways
- Revenue grew 36.14% YoY while expenses grew 31.17%, lifting operating margin by 4.18 percentage points to -10.17%.
- Sequentially, expenses grew 11.78% against revenue growth of 11.14%, cutting operating margin by 0.63 percentage points and widening the net loss to Rs 922 cr.
- Swiggy's operating margin was 22.41 percentage points below the 12.24% median of 34 reporting Consumer Discretionary peers.
Price around the results
Annual growth improved the consolidated loss profile
On a consolidated basis, revenue growth of 36.14% outpaced expense growth of 31.17% YoY, reducing the operating loss to Rs 770 cr from Rs 798 cr. That lifted operating margin by 4.18 percentage points, although the business remained loss-making at the operating level. Other income of Rs 210 cr partly cushioned the loss, but profit before tax was still negative at Rs 922 cr.
Sequential cost growth interrupted margin recovery
Revenue rose 11.14% QoQ, but expenses increased faster at 11.78%, pushing operating margin down by 0.63 percentage points to -10.17%. The sequential net loss therefore widened from Rs 791 cr to Rs 922 cr, while interest expense increased 1.89%. With a zero tax rate, the reported net loss received no tax benefit or tax charge.
Margin remains among the weakest in the sector
Operating margin had improved in every quarter from Q1FY26 through Q1FY27, moving from -19.23% to -9.54%, but Q2FY27 marked a reversal. At -10.17%, Swiggy's margin was 22.41 percentage points below the 12.24% median for the 34 Consumer Discretionary peers that had reported.
No immediate market reaction after the filing
The results were filed after market close at 15:45 IST, so there is no immediate post-results reaction to assess. Across the last eight result reactions, the stock fell six times, with a median absolute move of 3.73%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,571 cr | ₹6,812 cr | +11.14% | +36.14% |
| Other income | ₹210 cr | ₹210 cr | +0.00% | +262.07% |
| Expenses | ₹8,341 cr | ₹7,462 cr | +11.78% | +31.17% |
| Operating profit | ₹-770 cr | ₹-650 cr | -18.46% | +3.51% |
| Operating margin (%) | -10.17% | -9.54% | — | — |
| Interest | ₹54 cr | ₹53 cr | +1.89% | +12.50% |
| Depreciation | ₹308 cr | ₹298 cr | +3.36% | +1.32% |
| Profit before tax | ₹-922 cr | ₹-791 cr | -16.56% | +15.57% |
| Tax | ₹0 cr | ₹0 cr | — | — |
| Net profit | ₹-922 cr | ₹-791 cr | -16.56% | +15.57% |
| EPS (₹) | ₹-3.45 | ₹-2.96 | -16.55% | +24.84% |
Operating margin of -10.17% compares with a Consumer Discretionary sector median of 12.24% across 34 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -16.75% | -16.36% |
Volume on the results session was 24.98× its 20-day average.
What to watch
- Whether operating margin recovers from -10.17% after the 0.63-percentage-point sequential decline.
- Whether expenses continue to grow slower than revenue, as they did YoY at 31.17% versus 36.14%.
- Whether the net loss narrows without a tax benefit, with the tax rate currently at 0%.