Swiggy Ltd believes its existing Instamart network has sufficient capacity to support more than twice its current gross order value (GOV), marking a strategic pivot from rapid infrastructure expansion to asset utilization optimization. According to the company's FY26 annual report filed with stock exchanges on Friday, Swiggy stated that as the network matures, the focus remains on sweating existing assets while adding dark stores selectively for coverage and debottlenecking. Future expansion would prioritize densification, throughput and assortment capability rather than footprint growth alone. This strategic approach positions Swiggy differently from competitors like Blinkit and Zepto, who are engaged in aggressive store expansion races. As per latest reports, Swiggy founder and group CEO Sriharsha Majety emphasized that the quick commerce industry will remain well-funded and competitive, with the company's answer being to build a business that wins through distinctive product offering rather than price competition alone.
Instamart's gross order value stood at ₹2,849 crore in FY26, nearly double the FY25 levels, while servicing 412 million orders during the fiscal year. Average monthly transacting users rose nearly 74% to 12.3 million, with average order value increasing 34.4% year-on-year to ₹691. In the March quarter, the quick-commerce business posted revenue of ₹1,057 crore and reduced losses by 4.5% to ₹736 crore. The company added 122 net dark stores during FY26, bringing the total to 1,038 active stores across more than 125 cities. Contribution margins improved due to higher average order values and better infrastructure optimization. This strategic positioning allows Swiggy to focus on profit-per-store optimization rather than store count competition.
Swiggy's private-label food brand 'Noice' has passed an early consumer test, with Bernstein conducting blind taste tests showing Noice performed better than expected against established FMCG and direct-to-consumer brands. According to Bernstein's survey, Noice ranked first in paneer, salsa dip and whole wheat bread, finished second in butter cookies and orange juice, and ranked behind competitors in bhujia and potato chips, although score differences remained relatively small across categories. The brokerage noted that Noice entered one of the toughest segments where brand loyalty and taste matter more than in staples categories. However, Bernstein cautioned that while Noice is very good, it alone is not enough to turn Instamart's fortunes, emphasizing that the core work hinges on increasing customer buying frequency and improving dark store monetization.
Swiggy is repositioning Instamart as an 'everything store' rather than a grocery delivery platform, with non-grocery categories now accounting for more than 30% of the business. These categories span electronics, home and kitchen products, toys, accessories, and gifting. The company is focusing on initiatives such as Maxxsaver that encourage customers to consolidate purchases into larger orders, while larger-format stores and megapods enable stocking of a wider range of products to support higher basket values. Active dark-store area expanded to 4.8 million sq. ft. during the fiscal year. The company seeks to become a destination for everyday upgrades and essentials, with Sriharsha Majety emphasizing that quick delivery is increasingly becoming table stakes in the competitive landscape.
The annual report highlights Swiggy's broader strategy of using its integrated platform to deepen customer engagement, with more than 35% of transacting users now using more than one Swiggy service. Average monthly transacting users across the platform increased 33.1% to 23.5 million in FY26. Food delivery is following a similar approach, with Bolt and 99 Store together accounting for around one-fifth of food delivery volumes, while newer offerings such as EatRight, DeskEats and Food on Train are designed to create more consumption occasions without relying on structurally weak discount-led growth.
The strategic remarks come after months of Swiggy reiterating it would not participate in irrational competition in quick commerce. During its third-quarter FY26 earnings, Instamart chief executive Amitesh Jha cautioned that competitive intensity remained elevated, while CEO Sriharsha Majety reiterated that Swiggy would not 'buy growth'. The company believes competition will be won by generating higher throughput, larger baskets and better returns from existing infrastructure, rather than matching rivals store-for-store. With 1,038 stores, Swiggy is practically tied with Zepto at 1,139 stores, while Blinkit leads with 2,243 stores. However, Swiggy's advantage lies in its diversified revenue base that can subsidize Instamart expansion, unlike competitors who rely solely on quick commerce for growth. The latest market data shows that quick commerce is now present in 408 cities, but roughly two-thirds of all mapped stores sit in just 20 cities, indicating the sector's urban concentration.
