Swiggy’s advertising and sales promotion expenditure rose 24.9% year-on-year to Rs 1,298 crore in Q2 FY27, compared with Rs 1,039 crore in the corresponding quarter last year, according to its consolidated financial results for the quarter ended September 30, 2026.
The company increased its spending on advertising and sales promotion by Rs 259 crore year-on-year. On a quarter-on-quarter basis, the expenditure grew 11.9% from Rs 1,160 crore in Q1 FY27, an increase of Rs 138 crore.
Despite the rise in absolute spending, advertising and sales promotion expenses accounted for 17.1% of consolidated revenue in Q2 FY27, down from 18.7% in the year-ago period. For the first half of FY27, the expenditure increased 18.5% to Rs 2,458 crore from Rs 2,075 crore a year earlier.
The increased outlay comes as Swiggy continues to invest in customer acquisition, retention and order frequency across its food delivery and quick commerce businesses. Advertising has also emerged as a contributor to monetisation, particularly in its food delivery operations.
In its shareholder letter, Swiggy said advertising-led monetisation helped push its food delivery take rate to a record 26.1% in Q2 FY27, an improvement of 23 basis points year-on-year.
The food delivery business reported a 17.7% year-on-year increase in gross order value (GOV) to Rs 10,054 crore during the quarter. Adjusted EBITDA rose to Rs 341 crore from Rs 240 crore in Q2 FY26, while the adjusted EBITDA margin improved to 3.4% of GOV from approximately 2.8% in the year-ago period.
Swiggy attributed the improvement in food delivery profitability to a combination of advertising-led monetisation and operational efficiencies, including higher order density and shorter delivery distances.
In its quick commerce business, Instamart recorded a 31.4% year-on-year increase in GOV to Rs 9,230 crore. However, its adjusted EBITDA loss widened to Rs 895 crore in Q2 FY27 from Rs 849 crore in the corresponding quarter last year.
Swiggy said advertising, alongside product mix improvements and private-label offerings, is expected to support higher revenue per order as it works towards improving Instamart’s profitability.
At the consolidated level, Swiggy’s revenue from operations grew 36.1% year-on-year to Rs 7,571 crore in Q2 FY27, compared with Rs 5,561 crore in Q2 FY26.
The company reported a net loss of Rs 922 crore for the quarter, narrowing from Rs 1,092 crore a year earlier. However, the loss widened sequentially from Rs 791 crore in Q1 FY27.
