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 twice its current gross order value (GOV), signalling a shift in strategy from rapid infrastructure expansion to extracting more volume and profitability from its existing dark-store footprint.

“As the network matures, the focus remains on sweating existing assets while adding dark stores selectively for coverage and debottlenecking. The current infrastructure can support over 2X the current GOV,” the company said in its FY26 annual report filed with the stock exchanges on Friday.

Future expansion would prioritise “densification, throughput and assortment capability rather than footprint growth alone”, the company added.

Instamart’s GOV stood at ₹2,849 crore in FY26, nearly double the FY25 levels. It serviced 412 million orders in FY26. Average monthly transacting users rose nearly 74% to 12.3 million. Average order value increased 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 remarks come after months of Swiggy reiterating that it would not participate in irrational competition in quick commerce. During its third-quarter FY26 earnings, Instamart chief executive Amitesh Jha had cautioned that competitive intensity remained elevated and said the company would continue investing without chasing uneconomical growth.

Three months later, chief executive Sriharsha Majety reiterated that Swiggy would not “buy growth”, arguing that the business remained structurally variable-cost and unsustainable discounting would eventually ease.

Rather than matching rivals store-for-store, Swiggy believes competition will be won by generating higher throughput, larger baskets and better returns from existing infrastructure, according to the report.

Instamart will focus on a wider product assortment, expanding purchases beyond groceries, and on initiatives such as Maxxsaver that encourage customers to consolidate purchases into larger orders.

Swiggy added 122 net dark stores during FY26, taking its network to 1,143 active stores across more than 125 cities, while expanding active dark-store area to 4.8 million sq. ft. Larger-format stores and megapods have enabled it to stock a wider range of products, supporting its push towards higher basket values instead of merely increasing order volumes, it said.

Blinkit ended FY26 with 2,243 dark stores after adding 216 stores in the March quarter alone, according to Eternal’s Q4 FY26 shareholders’ letter. Meanwhile, Zepto operated 1,139 dark stores across 66 cities as of the end of March, per its updated draft papers.

The company is also repositioning Instamart as an ‘everything store’ rather than a grocery delivery platform. Non-grocery categories now account for more than 30% of the business, spanning electronics, home and kitchen products, toys, accessories, and gifting.

“The right to win will come from reliable availability, breadth of assortment, differentiated categories, strong partner brands and the ability to make Instamart a destination for everyday upgrades, not just everyday essentials,” Swiggy said in the report.

The annual report also underscores Swiggy’s broader strategy of using its integrated platform to deepen customer engagement. More than 35% of transacting users now use more than one Swiggy service, spanning food delivery, Instamart and dining-out offerings, while average monthly transacting users across the platform increased 33.1% to 23.5 million in FY26, the report highlighted.

Food delivery is following a similar playbook. Bolt and 99 Store together now account for around one-fifth of food delivery volumes, while newer offerings such as EatRight, DeskEats and Food on Train are intended to create more consumption occasions. Swiggy said these affordability-focused initiatives are designed to expand the market without relying on “structurally weak discount-l...