Swiggy increased its advertising and sales promotion expenditure by 12% year-on-year to ₹1,160 crore in the first quarter of FY27, reflecting the company’s continued focus on customer acquisition, brand building, and expanding its quick commerce ecosystem despite an increasingly competitive market. The higher marketing spend came as Swiggy reported strong revenue growth and a significant narrowing of its net loss, suggesting that its investments in advertising are being supported by improving operating performance.
The company said its marketing investments are aimed at accelerating growth across its food delivery and quick commerce businesses, particularly Instamart, while promoting differentiated offerings such as its “Switch to Better” initiative and private-label products. Swiggy believes these initiatives will help improve customer retention and strengthen loyalty as competition intensifies in India’s rapidly expanding quick commerce sector.
Swiggy’s Advertising Spend Climbs to ₹1,160 Crore
During the quarter ended June 30, 2026:
- Advertising and sales promotion expenses rose 12% YoY to ₹1,160 crore.
- Marketing spend increased from ₹1,036 crore in the corresponding quarter last year.
- Advertising expenditure was also 13% higher sequentially than the ₹1,024 crore spent in Q4 FY26.
The increase reflects Swiggy’s strategy of maintaining aggressive investments in customer acquisition and engagement while scaling new business initiatives.
Q1 FY27 Marketing Snapshot
| Metric | Q1 FY27 | YoY Change |
|---|---|---|
| Advertising & Sales Promotion | ₹1,160 crore | +12% |
| Revenue from Operations | ₹6,812 crore | +37% |
| Consolidated Net Loss | ₹791 crore | -34% |
| Adjusted Revenue | ₹7,112 crore | +34% |
Revenue Growth Supports Higher Marketing Investments
Swiggy’s spending increase mirrors a broader trend this earnings season, with Eternal spending Rs 945 crore on advertising in Q1 FY27.
Despite higher advertising expenses, Swiggy delivered strong financial performance during the quarter.
Key highlights include:
- Revenue from operations increased 37% year-on-year to ₹6,812 crore.
- Consolidated net loss narrowed 34% to ₹791 crore.
- Adjusted revenue rose 34% to ₹7,112 crore.
The improved financial performance indicates that Swiggy is balancing growth investments with a stronger focus on operational efficiency.
Instamart Drives Brand and Customer Acquisition
A significant portion of Swiggy’s marketing investments continues to support Instamart, its quick commerce business.
The company highlighted several initiatives during the quarter:
- Partnerships with more than 400 brands.
- Expansion of its “Switch to Better” curated product selection.
- Availability of the program across over 50 product categories.
- “Switch” products now contribute more than 15% of category sales.
- Customers purchasing Switch products demonstrate approximately 30% higher retention than comparable user cohorts.
According to Swiggy, differentiated assortment—not just faster delivery—is expected to become a key competitive advantage in quick commerce.
Instamart Performance
| Metric | Q1 FY27 |
|---|---|
| Gross Order Value (GOV) | ₹7,907 crore |
| Net Order Value | ₹5,817 crore |
| Dark Stores | 1,171 |
| Cities Served | 131 |
| Monthly Transacting Users | 13.5 million |
Food Delivery Business Maintains Momentum
Swiggy’s core food delivery business also delivered healthy growth.
Highlights include:
- Food delivery GOV increased 17.4% year-on-year to ₹9,490 crore.
- Monthly transacting users reached 19.2 million.
- Adjusted EBITDA rose to ₹292 crore.
- EBITDA margin improved to 3.1% of GOV.
The company continues expanding affordability-focused offerings, including its Toing app, which has now expanded to around 50 cities to attract new and price-conscious consumers.
Marketing Strategy Shifts Beyond Discounts
Other consumer platforms have also ramped up marketing budgets this quarter, including Groww, which spent Rs 146 crore on marketing in Q1 FY27.
Rather than relying solely on discounts, Swiggy is increasingly positioning its marketing around:
- Premium product discovery.
- Exclusive brand partnerships.
- Private-label offerings.
- Higher-quality everyday essentials.
- Customer retention through differentiated assortment.
Management believes this approach will generate stronger long-term customer loyalty while improving unit economics compared with competing primarily on price.
Looking Ahead
Swiggy’s decision to increase advertising and sales promotion spending to ₹1,160 crore in Q1 FY27 highlights its commitment to sustaining growth in both food delivery and quick commerce, even as competition intensifies. Backed by strong revenue growth and a narrowing net loss, the company appears increasingly confident that investments in customer acquisition, differentiated product offerings, and brand partnerships can drive long-term market leadership rather than short-term volume gains.
Looking ahead, Swiggy is expected to continue balancing disciplined marketing investments with improvements in profitability. As Instamart expands its assortment strategy and food delivery strengthens its affordability initiatives, the company’s ability to convert higher advertising spend into customer retention, operational efficiency, and sustainable growth will remain a key focus for investors.
Frequently Asked Questions
How much did Swiggy spend on advertising in Q1 FY27?
Swiggy increased its advertising and sales promotion expenditure by 12% year-on-year to ₹1,160 crore in the first quarter of FY27.
Why did Swiggy increase its marketing spend?
The higher spend reflects Swiggy’s continued focus on customer acquisition, brand building, and expanding its quick commerce ecosystem despite an increasingly competitive market.
Can Swiggy afford the higher advertising spend?
The higher marketing spend came as Swiggy reported strong revenue growth and a significant narrowing of its net loss, suggesting the investments are being supported by improving operating performance.
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