BENGALURU (Nov 3): Singapore's Grab lifted its annual forecasts on Tuesday, helped by steady growth in its ride-hailing unit, while demand for its delivery services benefitted from promotional offers and expansion into categories beyond groceries.

Grab also reported its first-ever core profit in its financial services unit in the September quarter, as more drivers and merchants on its platform used the company's loans, insurance products and other financial services.

Grab, Southeast Asia's biggest ride-hailing and delivery firm, now expects 2026 revenue between US$4.15 billion and US$4.20 billion, up from the previous forecast range of US$4.10 billion to US$4.15 billion.

"Elevated fuel costs continue to put a lot of pressure on our drivers, and we're also seeing some inflation... pressuring consumers. But despite that, the consumer continues to come to the platform, order more and spend more," Grab CFO Peter Oey told Reuters.

Grab's financial services unit reported its first positive adjusted Ebitda of US$12 million, a turnaround from a loss of US$28 million last year, as adoption of its lending and insurance products increased.

Promotions, GrabMall and expansion into categories such as pharmaceuticals and beauty products helped drive higher usage and larger order sizes.

For drivers, Grab is offering fuel subsidies, insurance benefits and lending programmes that can help them transition to EVs, Oey said.

Those incentives are helping boost the number of active drivers ahead of the crucial holiday travel season, according to the company.

It projected annual Ebitda of US$790 million to US$800 million, versus US$720 million to US$740 million earlier.

Grab's third-quarter revenue rose 27% to US$1.11 billion, beating analysts' estimates of US$1.07 billion, per LSEG-compiled data.

Shares rose 5% in extended trading on Monday, having fallen 42% so far this year.

Uploaded by Liza Shireen Koshy