Zepto Surges in Scale Race, Widens Lead Over Instamart But Profitability Gap Remains Vast

Zepto Surges in Scale Race, Widens Lead Over Instamart But Profitability Gap Remains Vast​

Quick commerce firm Zepto has significantly scaled up its operations, closing the scale gap with market leader Blinkit while decisively outpacing Swiggy Instamart. According to its updated draft red herring prospectus (UDRHP), the company continues to demonstrate aggressive growth in transaction value and order volume across the board. However, despite achieving higher operational throughput, Zepto’s profitability remains considerably weaker compared to both rivals.

Operational Metrics Show Zepto's Growing Advantage​

Zepto reported a Net Receivables Value (NRV) of ₹8,134 crore in the March quarter, marking a substantial 73 percent increase from the previous year's figure of ₹4,703 crore. This metric was also up 28 percent from the December quarter’s NRV of ₹6,336 crore, reflecting rapid business expansion.

The firm processed an impressive 210 million orders during the quarter. This represents a 70 percent jump from 123.6 million orders a year earlier and a 26 percent rise from the previous quarter’s 166.9 million orders. This volume was almost double that of Instamart's 112.6 million orders.

When comparing transaction values, Zepto's comparable figure stood at approximately ₹7,592 crore. This is notably higher than Instamart’s estimated Net Order Value (NOV) of ₹5,674 crore, yet it remains below Blinkit’s reported NOV of ₹14,386 crore.

Store Productivity and Market Penetration Comparison​

The comparison between the three quick commerce giants reveals distinct operational profiles. Zepto ended March with 1,139 dark stores, closely matching Instamart's 1,143 stores. In stark contrast, Blinkit maintained a vast network of 2,243 operating stores.

Despite having a nearly equivalent number of dark stores to Instamart, Zepto processed almost twice the quantity of orders during the quarter. The company’s average daily orders rose substantially to 23.3 lakh, up from 18.1 lakh in December and 13.7 lakh a year earlier.

Zepto's high throughput is underscored by its store productivity, which reached 2,140 orders per store per day during the March quarter. Estimates based on end-quarter figures suggest that Instamart processed roughly 1,095 orders per store per day (calculating from 112.6 million orders over 90 days and 1,143 stores).

Profitability and Financial Trade-offs Revealed​

While scale metrics look favorable for Zepto, the financial outcomes present a significant challenge in terms of profitability. The company reported an adjusted EBITDA loss of ₹1,248 crore in Q4 FY26. This marked an improvement of 29 percent from the previous year's loss of ₹1,764 crore and a reduction of 5 percent from the preceding quarter’s loss of ₹1,309 crore.

The earnings disparity across the sector is stark: Instamart reported an adjusted EBITDA loss of ₹858 crore, while Blinkit achieved positive adjusted EBITDA amounting to ₹37 crore. This highlights the ongoing capital intensity required for market dominance in the quick commerce segment.

Revenue Growth and Long-Term Investment Needs​

Revenue growth remains robust across Zepto's operations. The company reported revenue from operations of ₹7,498 crore in the March quarter. This represents a 75 percent increase from the previous year’s figure of ₹4,278 crore and a solid 29 percent rise from the December quarter's figure of ₹5,818 crore.

Looking at full-year performance (FY26), Zepto’s revenue from operations more than doubled to ₹22,624 crore, up from ₹11,110 crore in FY25. Furthermore, NRV nearly doubled to ₹24,816 crore in FY26, compared to ₹12,704 crore previously.

Despite this impressive growth trajectory, the company’s net loss continued to widen. The net loss increased to ₹5,905 crore in FY26 from a previous year loss of ₹4,700 crore. This trend is attributed to aggressive investments in logistics infrastructure, dark stores, and customer acquisition initiatives.