Swiggy wins shareholder nod for IOCC status, clears path for Instamart inventory model

The shift mirrors Eternal’s Blinkit, which moved to inventory last year and has shown five straight quarters of margin gains, turning contribution positive in the March 2026 quarter. Swiggy estimates the change could add roughly 80 basis points to Instamart’s contribution margin, currently at negative 0.2 percent in the latest quarter after improving from negative 1.8 percent.

Under FDI rules, foreign-owned e-commerce players cannot hold inventory. IOCC status removes that bar, giving Instamart direct control over assortment, pricing and supply chain in higher-value categories beyond groceries. Analysts peg the per-order lift at Rs 4-5, a meaningful chunk toward the roughly Rs 30 needed for break-even.

An inventory-led model could add about 80 basis points to Instamart’s contribution margin.

Transition will take two to four quarters after final regulatory and restructuring steps. Working capital will rise as the company buys and stocks goods across its dark-store network. Leadership appointments in growth, product and technology for Instamart were announced alongside the ownership changes.

The move comes as Amazon Now and Flipkart Minutes scale aggressively and the overall category crosses new volume thresholds. Swiggy still targets positive EPS only by fiscal 2031; every basis point now counts.