When will Swiggy turn profitable? Management answers post Q2 results

Food delivery aggregator Swiggy Ltd. reported its September quarter results on Tuesday, December 3, where it reported a net loss of ₹625.5 crore, which was around the same levels on a sequential as well as on a year-on-year basis.

As a result, the stock, which was up as much as 9% at one point during Tuesday’s trading session, ended the session in the red, with losses of 0.5%.

In a letter addressed to shareholders, the management explained the profitability timelines for the company.

Swiggy said that the food delivery business is already profitable on an Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) basis and is also ramping up margins steadily every quarter.

“We expect contribution break-even by the October-December period of 2025 and an adjusted EBITDA break-even by the July-September quarter of financial year 2027,” Swiggy said in its letter to shareholders.

On a consolidated group level, it expects to achieve positive adjusted EBITDA by the third quarter of financial year 2026 or the October-December period of calendar year 2025.

Swiggy’s Quick-Commerce business, known as Instamart, is currently in the investment phase, as per the management with three out of the top seven cities already contribution positive. 75% of the dark stores in these cities are already profitable, according to Swiggy.

“While we have a playbook for overall contribution profitability, we are going to earmark specific investments, which we believe are optimal to acquire and ring fence users to our platform to sustain long-term profitable growth,” the management said in the letter.

Swiggy said that the Instamart business is at an inflection point and is expanding to more geographies, consumer shopping missions and categories in retail. Its dark store footprint now stands at 2 million square feet and it plans on doubling the same to 4 million by March 2025.