Swiggy Ltd Forensic Report - SOIC x StockScans Report

as of Aug 2026

Swiggy's record is a study in accounting choices that keep reported losses smaller than the cash burn suggests. The company converted ₹1,130 crore of fully-impaired loans to a subsidiary into CCDs, avoiding a profit-and-loss charge after the auditor had already flagged the loans as prejudicial. Its goodwill-heavy balance sheet relies on long-term growth assumptions to avoid impairment, and a ₹1,350 crore gain on Rapido was routed through OCI while deferred tax assets remain unrecognised. The audit opinions are unmodified, but audit-trail gaps in revenue and payroll systems persist across both years.

Key findings

  1. Impaired subsidiary loans were converted to CCDs, avoiding a P&L charge Major - In FY2026, Swiggy converted inter-corporate deposits of ₹1,130 crore to wholly-owned subsidiary Supr Infotech Solutions into CCDs; the ICDs had been fully impaired and carried at ₹Nil on conversion date. The ₹1,130 crore impairment allowance was reversed and an equal impairment loss recognised on the CCDs, resulting in a net P&L charge of ₹Nil. The auditor had reported in FY2025 that loans to Supr aggregating ₹1,049.63 crore “may be construed as prejudicial to the Company’s interest” and that loans falling due were settled by fresh loans.
  2. Audit opinions are unmodified, but audit-trail gaps persist across both years Major - The statutory auditor issued unmodified opinions on the standalone and consolidated financial statements for both FY2025 and FY2026. Yet in both years, the audit trail feature was not enabled at the database level for the accounting software used for revenue and delivery-related records, and for the payroll software operated by a third party the auditor was unable to comment on whether the audit trail was enabled. The FY25 CARO finding that loans to a subsidiary were prejudicial and settled by fresh loans disappeared in FY26, replaced by a statement that investments and loans are not prejudicial.
  3. Goodwill dominates the balance sheet while acquired businesses are wound down Major - Goodwill of ₹3,816.08 Million was recognised on the acquisition of Lynks Logistics in August 2023, against a total purchase consideration of ₹3,855.39 Million; Lynks contributed a loss of ₹48.94 Million from acquisition to March 2024. The Private Brands and SuprDaily CGUs were fully impaired and derecognised upon discontinuation in FY2025-26, while the remaining Supply Chain and Out of Home Consumption CGUs use value-in-use calculations with a 5% long-term growth rate; no impairment was recognised as the recoverable amount exceeded the carrying amount.
  4. A ₹1,350 crore Rapido gain goes through OCI while DTA stays unrecognised Major - Swiggy recognised a gain of ₹1,350 crore in Other Comprehensive Income on the sale of its entire investment in Rapido for ₹2,399 crore during the year ended December 31, 2025. The Group has net deferred tax assets from deductible temporary differences and brought-forward losses but has not recognised any DTA due to lack of reasonable certainty of realisation. The company classified the additional gratuity liability from the new Labour Codes as a non-recurring exceptional item of ₹7 crore in FY2026.
  5. Founder-director nomination rights failed after institutional opposition Minor - A special resolution to grant Sriharsha Majety and Phani Kishan Addepalli board nomination rights failed on May 20, 2026, receiving 72.36% votes in favour, short of the 75% threshold. Public Institutions cast 59.15% of their votes against, while Public Non-Institutions cast 99.27% in favour. The proposed appointments of Rahul Bothra and Phani Kishan Addepalli as Additional Directors effective June 1, 2026, did not take effect.
  6. A layered subsidiary group with intra-group asset transfers is disclosed Minor - The Group comprised five wholly-owned subsidiaries as at March 31, 2026, up from four a year earlier, with Swiggy Instamart Private Limited incorporated to house the Instamart business. During FY2026, Swiggy acquired property, plant and equipment from subsidiary Swiggy Networks at book value of ₹818 crore and invested ₹1,300 crore via a rights issue in the same subsidiary. The Instamart undertaking, with a negative book value of ₹297.67 crore as at March 2025, was transferred via slump sale effective April 1, 2026.
  7. Persistent cash losses are funded by equity raises, with marketing spend pressuring cash conversion Minor - Swiggy reported negative free cash flow of ₹3,809 crore in FY26 and ₹2,912 crore in FY25. The company raised ₹10,000 crore via a QIP during FY2025-26 and ₹4,499 crore via a fresh issue in its IPO during FY2024-25. CFO Rahul Bothra stated in March 2026 that elevated negative free cash flow was driven by investment in warehousing and that a large part of the quarterly overhead in Quick Commerce is marketing spend with “heightened levels of spending across various platforms”.

What to watch

Bottom line: This is a disclosed record where the accounting choices do the heavy lifting: impaired loans become CCDs with no P&L charge, a large divestment gain sits in OCI, and goodwill from a loss-making acquisition remains untested while other units are wound down. The audit opinions are clean, but the persistent audit-trail gaps and the disappearance of a prior-year CARO finding on prejudicial loans mean the reader works harder to trace what changed and why. Watch the CCDs, the tax disputes, and the next impairment test.