Swiggy’s “Year One” Report Card: Why the Market is Valuing Stability Over Spikes

By Santosh Sinha | Markets & FoodTech Desk Date: November 29, 2025

Bengaluru: In the volatile world of new-age tech stocks, “boring” is often the new “beautiful.”

It has been exactly one year since Swiggy rang the opening bell in November 2024. As the food delivery giant marks its first anniversary as a public company, the verdict from Dalal Street is cautiously optimistic. The stock has avoided the rollercoaster volatility that defined its peers, remaining range-bound but stable at the ₹378-₹380 levels.

While day traders might bemoan the lack of massive spikes, long-term investors are reading the charts differently. Swiggy’s “Year One” report card shows a company that has traded hype for discipline.

The Q2 FY26 Reveal: Profitability in the Core

The anniversary coincides with the release of Swiggy’s Q2 FY26 earnings this month, offering a clear look under the hood. The financials paint a picture of a “Two-Speed” business.

1. The Cash Cow (Food Delivery): The core food delivery business has officially stabilized as a profit engine. With Adjusted EBITDA margins expanding for the third consecutive quarter, the “Food” vertical is no longer burning cash-it is generating it.

2. The Cash Guzzler (Instamart): Quick Commerce remains the drag on the bottom line. Instamart is still consuming capital to fight the fierce 10-minute delivery wars. However, the critical update for investors was the rate of burn.

• The Surprise: Losses in Instamart are narrowing faster than predicted. The “Dark Store Optimization” strategy implemented in early 2025 has improved unit economics, suggesting that the bleeding is calculated, not chaotic.

“Swiggy has managed to bore the market into confidence. By delivering boringly predictable improvements in margins every quarter, they have decoupled themselves from the ‘growth-at-any-cost’ narrative,” notes a consumer tech analyst at a leading domestic brokerage.

The “South India” Comeback

Perhaps the most significant strategic win highlighted in the “Year One” report is geographical.

For the last two years, rival Zomato had been aggressively eating into Swiggy’s fortress: South India. The Q2 FY26 data confirms a reversal. Swiggy has regained market share in key southern metros (Bengaluru, Chennai, Hyderabad).

This resurgence is attributed to Swiggy’s “Super-App” stickiness-specifically the successful integration of Dineout and its loyalty program, which has locked in high-value users in tech hubs who order frequently and dine out often.

Swiggy vs. The Rest

Comparing Swiggy’s first year to the broader sector reveals its “Defensive” appeal.

• Vs. Zomato: While Zomato remains the aggressive growth stock (often trading at higher multiples with higher volatility), Swiggy has positioned itself as the “Value” pick-steady, predictable, and focused on operational efficiency.
• Vs. Zepto: With Zepto delaying its IPO to 2026 to build a war chest, Swiggy remains the only way for public market investors to play the “Quick Commerce + Food” hybrid model directly today.

The Road to FY27

As Swiggy enters its second year on the bourses, the roadmap is clear. The market expects the food delivery profits to start effectively cross-subsidizing Instamart by mid-FY27.

If CEO Sriharsha Majety can maintain this “Stability over Spikes” discipline, Swiggy might not just be a safe bet-it could become the first food-tech giant to pay a dividend.