Swiggy544285Earnings call transcript

Q2 FY27 call: Instamart back on growth, Toing needs another quarter or two

Swiggy hosted its Q2 FY27 earnings conference call on October 22, 2026.

By ScoutQuest · Thu 29 Oct 2026, 3:43 PM IST · 2 min read

Instamart NOV growth QoQ: 13.4% QoQ NOV growth
Frequency growth QoQ: frequency up 4% QoQ
MTUs added: 1.3 million MTUs added

What this update is

The company submitted the transcript of its Q2 FY27 earnings conference call for analysts and investors, held on October 22, 2026, with the MD and Group CEO, the CFO, the CEO of Food Marketplace and the CEO of Instamart on the call. The discussion below is management's commentary from that call.

Instamart: back on the growth path

NOV growth of 13.4% QoQ in the quarter, described by the Instamart CEO as getting back on the growth trajectory.
Frequency metrics rose 4% QoQ and 1.3 million MTUs were added.
Retention metrics improved. Management attributes the growth to habit building on cohortised user bases and investment behind a differentiated assortment.
On the higher losses in quick commerce, the Instamart CEO said continuing to build quality of growth on users, frequency and per-pod throughput is the path to sustainable and profitable growth.
On Tier-2 markets, management said the network across T1 and T2 markets is already laid out, and the focus will be on markets showing growth, adding habituated users through fresh and staples plus differentiated assortment.

Toing: still being tested, more time sought

Swiggy is participating in the value segment through its Toing pilots.
The CFO said the company has asked for another quarter or two before calling it scale-ready, citing frequency growth, new user acquisition to the platform, and some earlier cities turning unit economics positive for repeat users.
Because the business is built on the existing platform, the incremental overhead is described as being on user acquisition only, with very low fixed cost, which management says allows it to scale up or dial down quickly.
The CEO said the overlap between the core food offering and Toing is reducing as Toing scales, which management reads as the opening of a new market.

Food marketplace growth range

Management said Toing's success could take overall food marketplace growth from 18-20% to 25-30%.
Asked where it sits today, the CEO said it would be closer to the lower end of that range.
Investments are expected to stay range bound while the company gathers more proof points on key questions.

Competition

On emerging competition in food, the CEO said only Rapido is live to the general public as of now, and that Flipkart has not opened to the public at scale even in Bangalore yet.
Management said it is watching the market closely and believes it is able to respond on both the Swiggy platform and Toing.

Point to note

The company stated on the call that its financial guidance and pro forma information are management estimates based on certain assumptions, have not been subjected to audit review or examination, and that it does not guarantee these statements or undertake to update them.

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