Swiggy Q1 Preview: Losses may widen YoY despite up to 56% jump in revenue on Instamart push – News Air Insight

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Swiggy is set to report its Q1FY26 earnings on Thursday, July 31, where brokerages anticipate continued net losses despite a sharp year-on-year rise in revenue. While food delivery is expected to show steady growth, the quick commerce vertical, Instamart, remains a key area of concern due to ongoing investments and intense competition.

The estimates given by brokerages ICICI Securities, Kotak Institutional Equities, and JM Financial have been taken into account.

Here’s what they expect from the company’s Q1:

1. Net loss

ICICI Securities expects Swiggy’s net loss to widen to Rs 1,060 crore, compared to Rs 611 crore in Q1FY25, though slightly better than the Rs 1,081 crore loss in Q4FY25.

Kotak Equities pegs the loss at Rs 763 crore, narrowing YoY, though relatively flat QoQ, while JM Financial projects the steepest loss of Rs 1,130 crore, expanding YoY and QoQ.

2. Revenue

ICICI Securities forecasts Rs 5,098 crore in adjusted revenue, up 46.6% YoY and 8% QoQ, while Kotak estimates topline at Rs 4,811 crore, a 49.3% YoY and 9.1% QoQ jump.

JM Financial is the most bullish with a revenue forecast of Rs 5,021 crore, up 56% YoY and 14% QoQ.

3. EBITDA

ICICI sees adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) loss at Rs 788 crore, widening sequentially from Rs 733 crore loss in Q4FY25 and higher YoY.

Kotak projects EBITDA loss at Rs 6,118 crore while JM Financial expects it at Rs 990 crore.

4. EBITDA margin

ICICI expects an adjusted EBITDA margin of -15.4%, down 543 bps YoY but up 9 bps QoQ.

Kotak forecasts a margin loss of 12.7%, with a 388 bps YoY contraction, but a 169 bps QoQ recovery.

5. Instamart: the key variable

Kotak sees 129% YoY revenue growth for Instamart, driven by 113% GMV growth and expansion to 1,171 stores. However, EBITDA losses are estimated at Rs 850 crore, remaining flat QoQ due to fixed costs despite margin improvement.

Key monitorables

Contributing margin trends in food delivery amid rising delivery costs, along with competitive intensity in quick commerce from rivals like Zomato. The Street would also like to hear the company’s commentary on the path to profitability in Instamart and store expansion plans.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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