Swiggy’s food delivery vertical generated an operating revenue of ₹2,208 crore and an operating profit of ₹299 crore in the June quarter of FY27, according to inc42.com. Despite this, the company recorded an overall loss of ₹791 crore in Q1 FY27, mainly due to losses in its quick commerce segment, Instamart.
Swiggy entered India’s online food delivery market in 2014, pioneering meal delivery from restaurants to customers’ doorsteps. Over time, it expanded into groceries, dining, supply chain, and other experiments. While the food delivery business remains the largest revenue contributor, Swiggy has invested heavily in newer verticals like Instamart, which posted an adjusted EBITDA loss of ₹778 crore despite generating ₹7,907 crore in gross order value (GOV).
The food delivery business forms the core of Swiggy’s model, generating profits that help fund its expansion into adjacent markets. This contrasts with competitors like Zomato, whose food delivery contributes only 15% of its total revenue after becoming part of Eternal. Swiggy’s strategy focuses on leveraging the profitable food delivery segment to support growth in quick commerce and other areas, broadening its addressable market.
Swiggy’s financials for Q1 FY27 highlight the contrasting performance of its verticals, with food delivery profitable and quick commerce incurring significant losses. The company’s ability to sustain investments in new businesses while maintaining profitability in its core segment will be closely watched in upcoming quarterly results.