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Swiggy Q3 Results: Food and grocery delivery firm Swiggy reported a sequential rise in revenue in the December quarter, even as it continued to post losses.

Revenue from operations rose to Rs 6,148 crore in Q3, compared with Rs 5,561 crore in the September quarter. The growth reflected steady demand across food delivery and quick commerce businesses.

Total income for the quarter stood at Rs 6,244 crore, up from Rs 5,620 crore in Q2. The company grew despite a challenging consumption environment and intense competition in the delivery space.

Swiggy reported a loss of Rs 1,065 crore for the quarter. This was marginally lower than the loss of Rs 1,092 crore in the previous quarter.

The sequential narrowing of losses points to some improvement in cost control. However, the company continues to remain loss-making.

Shares of Swiggy ended almost flat at Rs 323.85 on Thursday. The stock gave up intraday gains in the final minutes of trading ahead of the earnings announcement.

The stock is down 17 per cent from its IPO price of Rs 390.

Quick commerce revenue rose 76 per cent year-on-year to Rs 1,016 crore in the December quarter, compared with Rs 577 crore last year. On a sequential basis, revenue was largely flat.

The EBIT loss for the quick commerce business widened to Rs 791 crore from Rs 528 crore a year ago.

Gross order value for Instamart more than doubled, rising 103 per cent from last year. The growth was driven by a 40 per cent increase in average order value.

Contribution margins improved by 9 basis points sequentially. Adjusted EBITDA loss stood at Rs 908 crore.

Instamart added 37 dark stores during the quarter. The total dark store network stood at 1,136 stores across 131 cities, covering 4.8 million square feet.

Revenue from Swiggy’s supply chain and distribution business stood at Rs 2,981 crore, compared with Rs 1,693 crore in the year-ago period.