Swiggy says Instamart can double volumes without major network expansion
Bengaluru: Swiggy Ltd believes its existing Instamart network has enough capacity to support more than double the current gross order value (GOV), signaling a shift in strategy from rapid infrastructure expansion to driving more volume and profitability from its existing dark store footprint.
“As the network matures, the focus continues to build on existing assets while selectively adding dark warehouses for coverage and debottlenecking. Existing infrastructure can support more than 2x the current GOV,” the company said in its FY26 annual report filed to stock exchanges on Friday.
The company added that future expansion will prioritize “intensification, production and diversification capacity over footprint growth alone.”
Instamart’s GOV has stopped ₹2,849 crore in FY26, almost double the FY25 levels. It served 412 million orders in FY26. The average number of monthly transacting users increased by approximately 74% to 12.3 million. Average order value increased by 34.4% year-on-year ₹691.
In the March quarter, the flash trading business posted revenue of: ₹1,057 crore and losses reduced by 4.5% ₹736 crore.
These remarks come after Swiggy reiterated for months that it would not engage in unreasonable competition in flash commerce. Instamart CEO during Q3 FY26 earnings Amitesh Jha warned He said competitive intensity remains high and the company will continue investments without chasing uneconomic growth.
General manager three months later Sriharsha Majety reiterated He argued that Swiggy “will not buy growth”, that the business remains structurally variable cost and that unsustainable discounts will eventually ease.
According to the report, Swiggy believes that instead of matching its rivals store by store, the competition will be won through higher efficiency, larger baskets and better returns from existing infrastructure.
Swiggy’s 27th quarter financial results will be announced on July 30.
everything store
Instamart will focus on a broader range of products, expand shopping beyond groceries, and focus on initiatives like Maxxsaver that encourage customers to combine purchases into larger orders.
Swiggy added 122 net dark stores during FY26, taking its network to 1,143 active stores in over 125 cities, while expanding its active dark store area to 4.8 million square feet. He said larger format stores and megapods allow them to stock a wider range of products, supporting the move towards higher basket values rather than simply increasing order volumes.
Blinkit ended FY26 with 2,243 dark stores after adding 216 stores in the March quarter alone, according to Eternal’s Q4 FY20 shareholders’ letter. Zepto, meanwhile, operated 1,139 dark stores in 66 cities as of the end of March, according to updated draft documents.
The company is also repositioning Instamart as an ‘all-in-one store’ rather than a grocery delivery platform. Non-grocery categories now account for more than 30% of the business; It includes electronics, home and kitchen products, toys, accessories and gift products.
“The right to win will come from reliable availability, breadth of product assortment, diverse categories, strong partner brands and the ability to make Instamart a destination for not only daily essentials but also daily upgrades,” Swiggy said in the report.
Other initiatives
The annual report also underlines Swiggy’s broader strategy to use its integrated platform to deepen customer engagement. More than 35% of transacting users now use multiple Swiggy services spanning food delivery, Instamart and dining out offers, while the average monthly number of transacting users on the platform rose 33.1% to 23.5 million in FY26, the report said.
Food distribution follows a similar strategy. Bolt and 99 Store together now account for around a fifth of food delivery volumes, while newer offerings such as EatRight, DeskEats and Food on Train are intended to create more consumption opportunities. Swiggy said these affordability-focused initiatives are designed to expand the market without relying on “structurally weak discount-driven growth”.
“By remaining disciplined in capital allocation and business choices, we will continue to develop for more users, more efficiency and more acquisition mission,” the company said.
Shares of Swiggy are down around 3.8%. ₹251.61 per person on the National Stock Exchange at 3:23 PM on Friday.
Key takeaways
- Instamart’s FY26 GOV nearly doubles ₹2,849 crore thanks to 412 million orders.
- Average order value increased by 34.4% annually ₹691 in the last financial year.
- Swiggy added 122 net dark stores, taking the total to 1,143 across 125 cities.
- Non-grocery categories now account for more than 30% of Instamart’s total business.
- Quarterly losses fell 4.5 percent ₹736 crores when revenue is reached ₹1,057 crore.
