Are Swiggy latest results good or bad?

Swiggy's latest financial results for Q2 FY26 present a complex picture characterized by significant revenue growth alongside persistent net losses. The company reported net sales of ₹5,561 crores, reflecting a quarter-on-quarter growth of 12.09% and a year-over-year increase of 54.43%. This marks the highest quarterly revenue on record for Swiggy, indicating strong market traction and successful customer acquisition strategies within the competitive food delivery and quick commerce sectors.
However, the company's net loss for the quarter stood at ₹1,092 crores, which represents a sequential reduction of 8.77% from the previous quarter but a substantial year-over-year increase of 74.44%. The operating margin, excluding other income, was reported at -14.35%, showing improvement from -19.23% in the prior quarter but a decline from -15.38% in the same quarter last year. This trend suggests that while Swiggy is scaling its operations, it continues to face challenges in achieving profitability, as evidenced by the negative operating profit before depreciation, interest, and tax of ₹798 crores.

The financial data indicates that Swiggy is investing heavily in customer acquisition and market expansion, prioritizing growth over immediate profitability. Despite the impressive revenue growth, the company has accumulated cumulative losses exceeding ₹15,000 crores since its inception, raising questions about its long-term sustainability and path to profitability.

Additionally, Swiggy's balance sheet remains robust, with a net cash position and significant shareholder funds, providing a cushion for continued investments. The shareholding pattern shows a gradual increase in institutional investor confidence, as foreign institutional investors and mutual funds have raised their stakes in recent quarters.

Overall, Swiggy's results highlight a strong revenue momentum that is tempered by ongoing profitability challenges. The company saw an adjustment in its evaluation, reflecting the market's cautious outlook on its ability to convert growth into sustainable profits amidst intense competition.