At a Glance
Swiggy just served up its Q1 FY26 numbers, and the plate is full of revenue growth (₹4,961 Cr, ↑53%) and losses (₹1,197 Cr, because why not). Food delivery grew 19%, Instamart’s quick-commerce zoomed 108%, yet EBITDA loss was ₹813 Cr. The IPO cash is still warm at ₹4,359 Cr, cushioning the burn. Stock at ₹404, trading at 9× book, with ROE at -255%. In short: they deliver everything… except profits.
Introduction
Founded in 2014, Swiggy turned ordering food into a national sport. From butter chicken to batteries at 2 a.m., they deliver it all. But the financials? A spicy rollercoaster. Losses continue, but investors love growth stories, so the ₹1 lakh crore market cap says, “Who cares about profits when you have Instamart memes?” With DIIs upping their stake (13.5%) and FIIs sniffing around, the Street clearly expects this unicorn to someday grow a horn of profitability.
Business Model (WTF Do They Even Do?)
Swiggy’s empire has five pillars:
- Food Delivery: Core revenue driver, commissions + delivery fees + ads.
- Instamart (Quick Commerce): 10-minute groceries that burn cash faster than your popcorn.
- Swiggy Genie: Hyperlocal courier – revenue is small, but good PR.
- Dining Out & Corporate Catering: Commission model, helps with margins.
- Subscription (Swiggy One): Loyalty play to lock users in.
The company monetizes restaurants and customers simultaneously. Roast: their delivery boys earn more than their net margins.
Financials Overview
Q1 FY26 Results
- Revenue: ₹4,961 Cr (↑53% YoY)
- EBITDA Loss: ₹813 Cr (margin -19%)
- Net Loss: ₹1,197 Cr (vs -₹1,081 Cr in Q4)
- EPS: -₹4.8
TTM Loss: ₹3,704 Cr → P/E is “not meaningful” (negative).
Sales are growing fast, but losses are widening – classic startup-on-steroids.
Valuation
Since P/E is useless here, let’s play with EV/Sales:
- P/S Method:
- Sales FY26E ~ ₹21,000 Cr
- EV/Sales ~ 4x typical for growth tech
- EV ≈ ₹84,000 Cr → Fair Price ~ ₹340
- DCF (speculative):
- Assume profitability by FY29, FCF ₹2,000 Cr, discount 12%
- Fair Value ≈ ₹300–350
- Peer Comparison:
- Nykaa trades at P/S 7, Zomato at 10, Swiggy at ~6
- Market’s pricing growth, not cash flows
Fair Value Range: ₹300–360. Current ₹404 is already hot.
What’s Cooking – News, Triggers, Drama
- Instamart growth (↑108%) narrows losses slowly.
- IPO cash used for expansion, still ₹4,359 Cr in reserves.
- DIIs increased stake – confidence or just FOMO?
- Quick-commerce war with Blinkit, Zepto – margins still bleeding.
- Profitability target: management promises FY27 break-even (heard that before).
Balance Sheet
| Particulars (₹ Cr) | FY24 | FY25 |
|---|---|---|
| Assets | 10,529 | 15,205 |
| Liabilities | 10,529 | 15,205 |
| Net Worth | -7,785 | 9,991 |
| Borrowings | 16,437 | 1,703 |
Auditor’s Roast: IPO proceeds flipped reserves to positive, but operationally, they’re still deep in losses. Debt dropped – good move.
Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | -4,060 | -1,313 | -2,169 |
| Investing | 3,968 | 1,472 | -1,372 |
| Financing | -172 | -123 | 3,903 |
Commentary: Negative ops cash, positive financing cash (thanks IPO). Cash burn remains, but they have runway.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | -255% |
| ROCE | -29.2% |
| P/E | N/A |
| PAT Margin | -24% |
| D/E | 0.17 |
Commentary: Ratios uglier than your Monday morning face. But hey, growth stocks.
P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 8,265 | 11,247 | 15,227 |
| EBITDA | -4,273 | -2,199 | -3,199 |
| PAT | -4,179 | -2,350 | -3,703 |
Joke: Losses scale with revenue – at least they’re consistent.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Zomato | 12,000 | 300 | 110 |
| Nykaa | 8,000 | 66 | 900 |
| Swiggy | 16,966 | -3,704 | N/A |
| Brainbees (FirstCry) | 7,660 | -161 | N/A |
Remark: Swiggy’s revenue beats peers, losses also win gold.
Miscellaneous – Shareholding, Promoters
No promoter holding (founders diluted), FIIs 7.3%, DIIs 13.5%, Public 71%. IPO widened retail base, but institutions now hold the leash.
EduInvesting Verdict™
Swiggy is a high-growth, high-burn play. Revenues are skyrocketing, Instamart is scaling, and losses remain the elephant in the room. With IPO cash, they have runway to chase profitability, but competition is brutal, and valuations are not cheap.
SWOT
- Strength: Brand dominance, scale, tech platform.
- Weakness: Losses, negative margins.
- Opportunity: Quick-commerce boom, new monetization streams.
- Threat: Blinkit, Zepto, regulatory risks, rising delivery costs.
For thrill-seekers, this stock is like ordering a midnight pizza – exciting but may cause heartburn.
Written by EduInvesting Team | 31 July 2025SEO Tags: Swiggy Q1 FY26 Results, Instamart Growth, Food Delivery Stocks, Quick Commerce India
