Swiggy Q2 Results Preview: Instamart Drives Growth As Food Delivery Margins Firm Up
Food delivery and quick commerce giant Swiggy Ltd. is set to announce its financial results for the second quarter of the current financial year on Thursday. Here’s what analysts see in store for the quarter under review.
Brokerages project Swiggy to deliver steady growth across both its core verticals, Food Delivery and Quick Commerce, in the second quarter, aided by rising order volumes, improved monetisation, and early signs of operating leverage.
Expected Growth in Food Delivery and Quick Commerce
While competition remains intense, particularly in food delivery, analysts expect overall gross order value to expand in the mid-to-high teens year-on-year, with margins showing incremental improvement.
Swiggy’s Instamart business is projected to outpace its food delivery arm, supported by sustained demand and higher average order values. However, most firms expect Ebitda losses in quick commerce to remain elevated in absolute terms, given continued investments in network and fulfilment capacity.
Revenue and Net Loss Projections
Revenue is likely to rise 46.5% to Rs 5,284.63 crore versus Rs 3,601.45 crore. Net loss is expected to widen at Rs 917.21 crore versus loss of Rs 625.53 crore. Ebitda loss is projected at Rs 773.13 crore versus loss of Rs 675.8 crore.
Segment-Wise Performance
Food Delivery
Expects gross order volume growth of 5% quarter-on-quarter and 18% year-on-year; contribution margin to stay flat at 7.3% and Ebitda margin steady at 2.4%.
Quick Commerce (QC)
Forecasts 75 store additions, 20% quarter-on-quarter gross order volume growth, contribution margin improving 60bps to -4% of GMV; Ebitda loss expected to be at Rs 900 crore, which is broadly unchanged.
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Key Risks and Opportunities
Key risks include market share loss, AOV pressure, heightened competition (Zepto, Blinkit), tighter regulation on delivery models, or delays in breakeven.
On the other hand, strong execution and scale are expected to drive growth in food delivery and quick commerce, with Instamart being a key driver of growth.
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Analyst Expectations
Analysts expect Swiggy to deliver steady growth across both its core verticals, with Instamart outpacing food delivery. However, Ebitda losses in quick commerce are expected to remain elevated.
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Conclusion
In conclusion, Swiggy’s Q2 results are expected to show steady growth across food delivery and quick commerce segments, driven by Instamart’s strong performance. However, Ebitda losses in quick commerce are expected to remain elevated.
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