Swiggy's Instamart Growth Slows Amid Rising Quick Commerce Competition

Instamart Growth Slows in Q4FY26 Amid Increasing Competitive Intensity

Instamart, Swiggy's quick commerce business, witnessed a slowdown in growth in Q4FY26 as the company took a measured approach in an increasingly crowded market. The gross order value (GOV) of Instamart declined from Rs 7,938 crore in Q3FY26 to Rs 7,881 crore in Q4FY26, sequentially, according to exchange filings released on May 8. On a year-on-year (YoY) basis, GOV had grown 69 percent from Rs 4,670 crore in Q4FY25.

In contrast, Blinkit had grown around 8 percent sequentially and even turned EBITDA positive, registering an adjusted EBITDA of Rs 37 crore. Instamart, on the other hand, printed its first sequential decline, of 0.7%, in Q4FY26. This slowdown can be attributed to increasing competitive intensity, as well as the choices the company is making.

Swiggy's group CEO and co-founder, Sriharsha Majety, emphasized the importance of prioritizing economics over absolute volume increase. He noted that while a platform can grow significantly higher volumes in the short term, the sustainability of this approach is questionable due to high operating variable costs and the expiry date attached to higher than sustainable consumer inducements.

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The decision to slow down growth comes at a time when several quick commerce players are vying for a larger market share. Instamart's strategy is to play in the convenience segment and cement its positioning as a top player. To achieve this, the company aims to provide reliable delivery, a wide assortment of products (~ 50k SKUs), and live SKU availability.

Performance Comparison

Note: GOV figures are in crore.

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