Swiggy Instamart Achieves Contribution Break-Even, Narrows Losses in Q1 FY27

Swiggy’s quick commerce business Instamart has reached contribution break-even, a major profitability milestone as the company moves from aggressive expansion to sustainable growth amid rising competition in the quick commerce space.

Instamart became contribution break-even in May 2026, with its contribution margin improving to -0.2% of Gross Order Value (GOV) in the April-June quarter, a 440-basis-point improvement year-on-year. In sequence, the contribution margin increased by 165 basis points.

The company also reported an improvement in profitability with adjusted EBITDA losses narrowing by ₹80 crore quarter-on-quarter to ₹778 crore. Adjusted EBITDA margin improved 105 basis points to -9.8%.

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Profitability Milestone:

Revenue from operations grew 52.8% YoY to ₹1,232 crore in the Q1FY27, while Gross Order Value (GOV) increased 39.8% to ₹7,907 crore. Improved monetisation helped boost adjusted revenue per order by ₹11 quarter on quarter to ₹108.

“We consciously chose to prioritise profitability over aggressive expansion,” said Sriharsha Majety, Co-founder, Managing Director and Group CEO, Swiggy, commenting on the performance. “Our GOV grew 39.8% YoY to ₹7,907 crore, and increasing per-order monetisation saw adjusted revenue per order rise to ₹108. "We decided to stay the course with our strategy of driving growth through profitability and not looking at it as a trade-off during this period," Majety said.

He added that Swiggy was focused on improving monetisation, increasing basket sizes through wider assortment and better product availability, expanding its non-grocery portfolio, growing advertising revenue and benefiting from scale efficiencies.

Revenue from operations grew 52.8% YoY to ₹1,232 crore in the Q1FY27, while Gross Order Value (GOV) increased 39.8% to ₹7,907 crore. Improved monetisation helped boost adjusted revenue per order by ₹11 quarter on quarter to ₹108.

“We consciously chose to prioritise profitability over aggressive expansion,” said Sriharsha Majety, Co-founder, Managing Director and Group CEO, Swiggy, commenting on the performance. “Our GOV grew 39.8% YoY to ₹7,907 crore, and increasing per-order monetisation saw adjusted revenue per order rise to ₹108. "We decided to stay the course with our strategy of driving growth through profitability and not looking at it as a trade-off during this period," Majety said.

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Profit First:

He added that Swiggy was focused on improving monetisation, increasing basket sizes through wider assortment and better product availability, expanding its non-grocery portfolio, growing advertising revenue and benefiting from scale efficiencies.

"In a period where quick commerce competition has only intensified, we prioritised improving unit economics over fleeting headline growth. Our efforts over the last few quarters to reset our user base, economics and experience have together made the business much stronger and increased its staying power. This milestone marks a pivotal transition, as growth increasingly serves as a driver for profitability rather than a compromise against it," he said.

Swiggy also continued investing in Instamart's fulfilment infrastructure during the quarter. Its dark store network expanded to 1,171 stores across 131 cities, while total dark store area grew 14.6% year-on-year to over 4.9 million square feet.