According to a stock exchange filing, the company's total expenses rose to ₹7,813 crore during the quarter, compared to ₹6,244 crore a year earlier, primarily due to higher advertising and sales promotion expenses, as well as delivery-related costs.

In a letter to shareholders, Sriharsha Majety, Co-founder, MD & Group CEO, Swiggy, said the company's quick commerce business Instamart achieved its break-even contribution target in May 2026, with an overall contribution margin of -0.2% of gross order value (GOV) for the quarter. The segment's adjusted EBITDA loss also narrowed to ₹778 crore.

Majety added that obtaining Indian-Owned and Controlled Company (IOCC) status would allow Instamart to directly own and sell inventory alongside its marketplace operations. He said the move has the potential to improve contribution margins by around 80 basis points, while providing greater operational flexibility and control.

The proposal is subject to shareholder approval at the company's 13th Annual General Meeting (AGM) scheduled for August 18, 2026.

"We expect the transition to complete over a period of 2-4 quarters post-approval. We do not expect any disruption to the customer experience or to our supply relationships during this period, and our teams have been preparing the operational groundwork in parallel so that we are ready to move in a seamless fashion once we receive the necessary approvals," Majety said.