Zepto Surges with 75% Revenue Jump as Operational Leverage Narrows Path to IPO

Zepto Surges with 75% Revenue Jump as Operational Leverage Narrows Path to IPO​

Quick commerce leader Zepto has reported a significant operational and financial performance improvement in its Q4 FY26 results. The company saw revenue from operations surge by 75 percent year-over-year, showcasing strong scaling amid the journey toward its proposed Initial Public Offering (IPO).

The updated draft red herring prospectus (DRHP) reveals that Zepto achieved revenues of ₹7,498 crore for the quarter ended March 2026. This figure marks a substantial increase from the Q4 figures of ₹4,278 crore reported one year prior and is also 29 percent higher than the ₹5,818 crore recorded in December.

Improving Profitability Metrics Narrowing EBITDA Loss​

The focus remains on profitability improvement, as Zepto has managed to narrow its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) loss significantly. The company's adjusted EBITDA loss stood at ₹1,248 crore in Q4 FY26. This represents a marked reduction from the previous year's loss of ₹1,764 crore and an improvement compared to the Q3 FY26 loss of ₹1,309 crore.

This operational efficiency translated into a sharp improvement in the adjusted EBITDA margin. The margin improved drastically to negative 15.3 percent. This contrasts sharply with the previous year's margin of negative 37.5 percent and the preceding quarter's margin of negative 20.7 percent.

Operational Scale and Net Receivables Growth​

Zepto’s net receivables value (NRV) also showed consistent growth during the quarter. The NRV reached ₹8,134 crore. This is an increase from ₹4,703 crore reported a year ago and is higher than the ₹6,336 crore recorded in the prior quarter.

The company's operational volume saw a massive jump, processing 210 million orders during the March quarter. This figure is up substantially compared to 123.6 million orders processed a year earlier, and also represents growth from 166.9 million orders processed in Q3 FY26.

Market Standing and Competitive Analysis​

In comparison with its listed peers, Zepto maintains strong market position metrics, according to the filing details. The company was noted as being smaller than Blinkit but held an advantage over Swiggy Instamart concerning transaction value.

Excluding advertising revenue, which is included in NRV, Zepto's March-quarter Net Order Value (NOV) measures approximately ₹7,592 crore. This compares to Instamart’s estimated net order value of roughly ₹5,674 crore and Blinkit’s figure of ₹14,386 crore.

FY26 Outlook and IPO Details​

Looking at the full fiscal year (FY26), Zepto's revenue from operations is projected to more than double, reaching ₹22,624 crore from ₹11,110 crore in FY25. However, the company's net loss for the year has widened and stands at ₹5,905 crore, up from a net loss of ₹4,700 crore a year prior.

On the operational front, Zepto ended March with 1,139 dark stores, showing growth from 1,029 stores held a year ago and an increase from 1,065 in December. The company's transacting users also rose to 47.97 million, up from 38.38 million recorded during the previous period.

IPO Filing and Future Targets​

The company has recently filed an updated DRHP with the Securities and Exchange Board of India (SEBI) in preparation for its proposed IPO. This filing includes a fresh issue of shares valued at ₹8,010 crore. When factoring in the offer-for-sale component, the total expected issue size is estimated to fall between ₹9,000 crore and ₹10,000 crore.