Bengaluru: Swiggy's net loss for the second quarter narrowed to ₹922 crore, from ₹1,092 crore in the year-ago period. The company remains in the red even as its loss shrank.
Revenue for the quarter grew 54.4 per cent year-on-year to ₹5,561 crore, up from ₹3,601 crore. EBITDA loss narrowed to ₹770 crore from ₹798 crore, indicating improving efficiency even as costs rose.
By segment, quick commerce revenue increased 33.3 per cent to ₹1,306 crore, from ₹980 crore a year earlier. Food delivery revenue rose 21.6 per cent to ₹2,338 crore, from ₹1,923 crore. The quick commerce business sustained rapid growth even amid rising competition in the segment.
For investors, the focus remains on both the pace of growth and the trend of a narrowing loss. Analysts said the impact of festive-season demand and competition in quick commerce will show in the next quarter.
Growth in the company's quick commerce arm has been a talking point in recent quarters. Competition in the segment is intense, with firms leaning on discounts and faster delivery to attract customers. Even as revenue grows, keeping costs in check to turn profitable remains a challenge. Swiggy expects a pick-up in orders during the festive season to improve performance in the next quarter. Investors are watching quick commerce margins closely, and analysts said profitability may stay elusive in the near term as the company keeps investing in growth.
The company also announced some new initiatives and partnerships during the quarter, which it expects to open up further avenues for growth.