Swiggy’s Food Delivery Profit Slips Sequentially As LPG Supply Disruption Hits Margins
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Swiggy’s food delivery business saw its profitability moderate sequentially in the first quarter of FY27 as restaurant order cancellations caused by an LPG supply disruption, seasonal demand softness, and annual wage hikes weighed on margins.
Revenue from the food delivery segment increased 22.7% YoY to ₹2,208 Cr in Q1 FY27 from ₹1,799 Cr a year ago. On a sequential basis, revenue rose 6.5% from ₹2,073 Cr in the preceding quarter.
However, segment profit slipped 2.3% QoQ to ₹299 Cr from ₹306 Cr in Q4 FY26, even as it surged 48% from ₹202 Cr in the year-ago period.
According to Swiggy, food delivery gross order value (GOV) grew 17.4% YoY to ₹9,490 Cr during the quarter. The company said growth would have been close to 18% after adjusting for restaurant-driven order cancellations caused by the LPG supply disruption in the early part of the quarter.
Swiggy added 0.9 Mn monthly transacting users (MTUs) during the quarter, taking the total to 19.2 Mn.
The company said the June quarter is typically seasonally weaker due to the monsoon, while annual salary revisions also take effect during the period. Higher investments to ensure delivery partner availability, coupled with wage hikes, also weighed on profitability.
As a result, adjusted EBITDA for the food delivery business declined ₹5 Cr sequentially to ₹292 Cr, with the adjusted EBITDA margin slipping 20 basis points QoQ to 3.1% of GOV. Contribution margin also declined by 20 basis points sequentially.
Swiggy reiterated its medium-term target of achieving an adjusted EBITDA margin of 5% of GOV for the food delivery business.
The company also continued to expand its affordability-focused offerings. Its standalone budget food delivery app Toing is now live in 50 cities, with Swiggy claiming that two out of every three new users on the platform are either first-time or dormant users, helping restaurants generate incremental order volumes without requiring additional infrastructure.
Swiggy Banks On Network As Competition Intensifies
The comments come at a time when competition in the food delivery segment is intensifying. While Rapido is looking to expand its zero-commission food delivery platform Ownly beyond Bengaluru, Flipkart is also planning to launch its food delivery service soon.
Questioning the viability of zero-commission food delivery models, the company said that while such offerings may initially be positioned as commission-free, “somebody has to pay” for platform costs. Swiggy added that over the medium term, platforms would inevitably have to recover those costs through charges, “whether they are called commission or by some other name”, either from restaurants, consumers or delivery partners.
The company argued that any new entrant would have to find a value proposition that established platforms do not already serve at scale.
Swiggy reiterated its guidance of delivering 18-20% food delivery GOV growth, excluding Toing, saying healthy user additions and higher basket values continue to support demand despite temporary operational disruptions during the quarter.
Overall, the company reported a consolidated net loss of ₹791 Cr in Q1 FY27, down 33.9% from ₹1,197 Cr in the year-ago quarter. On a sequential basis, loss improved marginally from ₹800 Cr.
Revenue from operations rose 36.8% YoY to ₹6,812 Cr from ₹4,961 Cr a year earlier and increased 6.7% QoQ from ₹6,383 Cr in the preceding quarter.
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