Shares of meals transport and rapidly commerce platform Swiggy slipped as noteworthy as 7% to their day’s low of Rs 305 on the BSE on Friday after it reported a consolidated catch lack of Rs 1,065 crore for Q3FY26, widening from a lack of Rs 799 crore within the year-within the past duration.
Revenue from operations, nevertheless, rose sharply by 54% YoY to Rs 6,148 crore, when in contrast with Rs 3,993 crore within the corresponding quarter final year.
On a sequential basis, the company’s catch loss narrowed rather from Rs 1,092 crore in Q2FY26, whereas income grew 11% quarter-on-quarter from Rs 5,561 crore recorded within the July–September quarter.
On the platform diploma, moderate monthly transacting users (MTUs) increased 36.8% YoY to 24.3 million, reflecting a 6% QoQ rise. Consolidated adjusted income climbed 51% YoY to Rs 6,431 crore, up 9% sequentially. The B2C adjusted EBITDA margin as a share of B2C GOV declined by 16 bps YoY to -3.5%, even when it improved 15 bps on a QoQ basis. Consolidated adjusted EBITDA loss widened by Rs 16 crore sequentially to Rs 712 crore.
In the meals transport segment, immoral bid fee (GOV) rose 20.5% YoY to Rs 8,959 crore, marking the fastest growth in three years. MTU growth accelerated to 22% YoY, with an addition of 0.9 million users QoQ, taking the overall to 18.1 million. Adjusted EBITDA increased 13.1% sequentially to Rs 272 crore, whereas adjusted EBITDA margin improved to a pair% of GOV, up 56 bps YoY and 22 bps QoQ, basically the most attention-grabbing diploma considered within the previous two years.
Swiggy’s rapidly commerce trade persevered its like a flash growth, with GOV surging 103.2% YoY and 13.0% QoQ to Rs 7,938 crore, marking the fourth consecutive quarter of over 100% YoY growth. The segment added 0.8 million MTUs throughout the quarter. Swiggy additionally expanded its network by in conjunction with 34 unlit retail outlets, taking the overall to 1,136 retail outlets across 131 cities, whereas energetic unlit retailer space grew 95.5% YoY and 4.3% QoQ to 4.8 million square feet.
Average bid fee rose 40% YoY to Rs 746, supported by growth in non-grocery offerings and better basket sizes. Contribution margin improved by 9 bps QoQ and 208 bps YoY to -2.5%, whereas adjusted EBITDA margin improved by 65 bps sequentially to -11.4%. Nevertheless, losses within the segment increased by Rs 59 crore QoQ to Rs 908 crore.
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Motilal Oswal has maintained a Buy rating on Swiggy with a revised target tag of Rs 440, lowered from Rs 530 earlier. The brokerage said measured MTU additions can even moderate rapidly commerce GOV growth. Whereas meals transport GOV growth exceeded expectations, Instamart’s adjusted EBITDA margin came in below estimates.
It added that shut to-term rapidly commerce growth can even reside below stress due to aggressive competition, but bettering unit economics thru higher moderate bid values, higher retailer utilisation, and controlled reinvestments present visibility for slack margin growth.
Morgan Stanley has retained its Equal Weight rating on the stock, reducing its target tag to Rs 375 from Rs 414 earlier. The brokerage said meals transport execution remains regular, with GOV growth sustaining within the 18–20% fluctuate and adjusted EBITDA margin bettering to around 3%, with a medium-term target of practically 5%.
Rapidly commerce growth has moderated because the company prioritises quality over scale, with contribution margin breakeven expected by Q1FY27. Nevertheless, Morgan Stanley cautioned that visibility on a doable re-rating remains restricted, with the target tag revision reflecting higher rapidly commerce losses and decrease long-term margin assumptions.
Management commentary
Commenting on the efficiency, Co-founder, MD and Community CEO Sriharsha Majety said the standout highlight of the quarter turn out to be once meals transport GOV growth crossing the 20% label at 20.5% YoY, basically the most attention-grabbing considered within the final three years. He well-known that a 5% QoQ growth throughout a festive quarter mirrored stable seek info from even on capability-constrained days akin to Christmas and Recent three hundred and sixty five days, resulting in suppose bid volumes and smoother operations. This additionally helped MTUs develop 22% YoY to 18.1 million.
Majety added that rapidly commerce continues to invent traction as a preferred retail channel for city customers. Instamart delivered over 100% YoY GOV growth at Rs 7,938 crore, even when growth turn out to be once partly impacted by around 300 bps GST-related tag cuts and excessive effects due to an earlier festive season this year.
(Disclaimer: Suggestions, suggestions, views and opinions given by the consultants are their possess. These design now not signify the views of The Financial Instances)
