Archive · 30 Jul 2026
Instamart Eyes Growth Through Product Mix After Q1 Break-even
Swiggy’s Instamart business finally stopped losing money on each order.
It did this by selling more useful products instead of just giving big discounts.
The company now has 1,171 stores in 131 cities and is adding more.
It also wants to work with 400+ brands to offer better items.
Swiggy’s food delivery side is still growing, but it faces tough competition.
The company plans to keep adding stores and new products to stay strong.
Instamart achieved contribution‑margin break‑even in May, shifting focus from discount‑led expansion to product‑driven growth.
Contribution margin improved to –0.2% of GOV, with GOV rising 39.8% YoY to ₹7,907 crore.
Dark store network expanded to 1,171 stores across 131 cities, with 45% becoming contribution‑margin positive.
Swiggy plans to add ~75 new stores in Q2FY27 and partner with 400+ brands under the “Switch to Better” initiative.
Food delivery business grew 17.4% YoY GOV to ₹9,490 crore, with adjusted EBITDA of ₹292 crore and 3.1% margin.
- Who
- Swiggy Ltd and its Instamart quick‑commerce arm, led by CEO Sriharsha Majety
- What
- Instamart reached break‑even on contribution margin and is focusing on product mix to drive growth
- When
- Q1 FY27 (January‑March 2027) results reported in June 2027
- Where
- India, across 131 cities
- Why
- To improve unit economics and move away from discount‑driven expansion, aiming for sustainable profitability
- Company
- Swiggy Ltd
- Business unit
- Instamart
- Contribution margin
- -0.2% of GOV
- GOV growth
- 39.8% YoY
- Dark stores
- 1,171 across 131 cities