Zomato Beats Swiggy in Q2 with Robust Revenue Growth and Higher Profit Margins

The competition for food delivery in India is intensifying once again, and the results of this quarter highlight the disparity more than before. Rival Zomato (Eternal) is booming with record revenues, while Swiggy continues to report growing losses despite robust revenue growth. Fast commerce platform and food delivery On October 30, Swiggy revealed a combined net loss of INR 1,092 crore for the September 2025 quarter (Q2 FY26), up from INR 626 crore for the same period the previous year. Since Q1 FY26, losses have decreased marginally from INR 1,197 crore.

Swiggy’s Revenue Jump Sidelined by Growing Expanses

Swiggy's revenue increased from INR 3,601 crore in Q2 FY25 to INR 5,561 crore, a 54% YoY increase. Due to increased order volumes and ongoing growth in its rapid commerce segment, Instamart, revenue increased by 12% on a sequential basis.

These profits were outweighed by the increase in expenses. Total expenses increased 7.5% sequentially and 56% year over year to INR 6,711 crore from INR 4,309 crore the previous year. Purchases of stock-in-trade for Instamart, delivery-related fees, and advertising and sales promotions were the main sources of cost pressure.

Zomato Witnessed a Staggering Performance

In Q2 FY26, Zomato's parent company Eternal announced a net profit of Rs 65 crore, up 160% sequentially from INR 25 crore in Q1 but down 63% year-over-year from INR 176 crore. Operating revenue increased by 183% year over year to INR 13,590 crore from INR 4,799 crore the previous year and by 90% on a quarterly basis from INR 7,167 crore, which is about 2.5 times Swiggy's sales.

With a net order value up 27% QoQ and 137% YoY, its rapid commerce division Blinkit produced robust growth, its highest showing in ten quarters. The adjusted EBITDA margin improved to -1.3% of net order value (NOV) from -1.8% in the previous quarter, while Blinkit's EBITDA loss decreased to INR 156 crore from INR 162 crore in the previous quarter.

With NOV increasing 14% YoY and profitability increasing to a record 5.3% of NOV, up from 5% in Q1, the food delivery segment has also shown recovery. During the quarter, Eternal added 272 new Blinkit outlets and had an average of 39 lakh monthly transactions.