Zomato Outperforms Swiggy in Q2 FY26: Record Revenue Growth and Improved Margins Despite Market Challenges

Zomato has demonstrated superior performance compared to Swiggy in Q2 FY26.

The competitive landscape of India's food delivery market is intensifying, with recent quarterly results highlighting a growing disparity between the two major players. While Swiggy continues to struggle with expanding losses despite impressive revenue growth, Zomato (Eternal) is forging ahead with unprecedented revenue figures.

Swiggy's Q2 financial report revealed a consolidated net loss of Rs 1,092 crore for the quarter ending September 2025, representing a significant increase from the Rs 626 crore loss recorded during the same period last year. However, there was a slight improvement from the previous quarter's loss of Rs 1,197 crore.

On a positive note, Swiggy's revenue experienced substantial growth, increasing by 54 percent year-on-year to reach Rs 5,561 crore, up from Rs 3,601 crore in Q2 FY25. Sequential growth stood at 12 percent, primarily driven by increased order volumes and continued expansion of their quick commerce division, Instamart.

Unfortunately, escalating expenses have overshadowed these revenue gains. Total expenditure rose by 56 percent year-on-year to Rs 6,711 crore, compared to Rs 4,309 crore a year earlier, and increased by 7.5 percent sequentially. The main contributors to this cost increase were advertising and promotional activities, delivery-related expenses, and inventory purchases for Instamart.

In contrast, Zomato's parent company Eternal reported a net profit of Rs 65 crore in Q2 FY26. While this represents a 63 percent year-on-year decrease from Rs 176 crore, it marks a substantial 160 percent sequential increase from the Rs 25 crore profit in Q1. The company's operational revenue experienced remarkable growth, surging 183 percent year-on-year to Rs 13,590 crore, compared to Rs 4,799 crore in the previous year. This quarterly revenue figure, which grew 90 percent from Q1's Rs 7,167 crore, is nearly 2.5 times that of Swiggy.

Zomato's quick commerce subsidiary Blinkit demonstrated impressive performance, with net order value increasing by 137 percent year-on-year and 27 percent quarter-on-quarter, marking its strongest performance in 10 quarters. Blinkit's EBITDA loss decreased to Rs 156 crore from Rs 162 crore in the previous quarter, while its adjusted EBITDA margin improved to -1.3 percent of net order value (NOV) from -1.8 percent in Q1.

The food delivery segment also showed signs of recovery, with NOV rising by 14 percent year-on-year and profitability reaching a record 5.3 percent of NOV, up from 5 percent in the previous quarter. During this period, Eternal expanded its operations by adding 272 new Blinkit stores and attracting 39 lakh average monthly transacting customers.

In the direct comparison between the two companies, Zomato clearly outperformed Swiggy in Q2 FY26. While Swiggy's revenue increased by 54 percent year-on-year to Rs 5,561 crore, its losses expanded to Rs 1,092 crore. Conversely, Zomato's revenue surged by 183 percent to Rs 13,590 crore, generating a profit of Rs 65 crore despite a year-on-year decrease.

Swiggy's expenses escalated to Rs 6,711 crore, whereas Zomato improved its margins and achieved 160 percent sequential profit growth. In the quick commerce segment, Swiggy's Instamart remained unprofitable, while Zomato's Blinkit managed to reduce its losses to Rs 156 crore.