Swiggy vs. Zomato: Who’s Dominating the Food Delivery and Quick Commerce Race?

Synopsis: Eternal Limited reports 202 percent revenue growth and positive EBITDA margins at 5.4 percent, while Swiggy Ltd delivers 54 percent revenue growth, 20.5 percent food GOV expansion, but continues posting EBITDA losses amid aggressive quick-commerce scaling.

This article examines how the leading e-commerce players performed in Q3 across food delivery and adjacent segments such as quick commerce and supply services. It reviews key financial metrics, growth trends, profitability movements, and operating leverage, while also analysing management guidance and the near-to-medium-term outlook across core and expanding businesses.

About the Company

Eternal Limited, formerly Zomato, is an Indian tech and delivery company based in Gurugram. It operates multiple services, including food delivery, grocery delivery through Blinkit, restaurant supplies via Hyperpure, and events & ticketing through District. The rebranding reflects its expansion beyond food delivery, aiming to grow a wide range of services under one umbrella for convenience and scale.

With the market capitalization of Rs 2,40,969 crore, the shares of this company opened at Rs 251.05 per share, up 1.7 percent from its previous day’s close price. The share gave a return of 9.13 percent over the last 1 year with a debt-to-equity ratio of 0.11x.

Swiggy is an Indian food delivery company that connects people with restaurants through its app. Customers can order meals online, and Swiggy’s delivery partners bring the food right to their doorstep. It also offers grocery and essential delivery in many cities, making it a convenient service for daily needs.

With the market capitalization of Rs 85,362 crore, the shares of this company opened at Rs 312.35 per share, up 1.6 percent  from its previous day’s close price. The share gave a negative return of 10.19 percent over the last 1 year with a debt-to-equity ratio of 0.25x.

Business performance comparison:

Eternal Limited: In Q3FY26, overall performance strengthened across core segments. Food delivery NOV(Net Order Value) grew 16.6 percent YoY with sequential acceleration, while GOV(Gross Order Value) rose 21.3 percent. Margins improved meaningfully, with Adjusted EBITDA margin reaching 5.4 percent, generating Rs 531 crore. Growth recovery appears sustained after Q1’s trough, supported by operating leverage and stable demand momentum.

Quick commerce maintained exceptional scale-up, delivering 121 percent YoY NOV growth despite GST and seasonal headwinds. Store count reached 2,027 with 211 net additions. Importantly, the segment turned EBITDA positive at Rs 4 crore versus a sharp loss last quarter, indicating improved unit economics and better cost absorption.

Going-out grew 20 percent YoY but margins weakened due to ongoing investments, resulting in a Rs 121 crore loss. Hyperpure expanded 33 percent YoY and achieved marginal EBITDA profitability. Consolidated revenue surged due to accounting changes, while B2C NOV crossed Rs 1 lakh crore annualized, reflecting strong platform-wide expansion.

Swiggy Ltd delivered strong user and revenue momentum during the quarter, with platform MTUs(Monthly transaction per unit) rising 36.8 percent YoY to 24.3 million. Consolidated adjusted revenue increased 50.8 percent YoY to Rs 6,431 crore. While consolidated EBITDA losses widened sequentially to Rs 712 crore, B2C margins showed marginal QoQ improvement, indicating gradual operating leverage.

The food delivery segment recorded its fastest growth in three years, with GOV expanding 20.5 percent YoY to Rs 8,959 crore. MTUs rose 22 percent YoY to 18.1 million, reflecting sustained demand. Profitability strengthened meaningfully, as adjusted EBITDA reached Rs 272 crore and margins improved to 3.0 percent of GOV, the highest level in two years.

Quick-commerce continued scaling aggressively, with GOV surging 103.2 percent YoY to Rs 7,938 crore and consistent MTU additions. Store expansion remained robust, reaching 1,136 dark stores across 131 cities. Higher AOV (Average Order Value) and improving contribution margins signal better unit economics, though EBITDA losses widened to Rs 908 crore due to continued investments in expansion.

Financial Highlights

Eternal Ltd: revenue from operations increased 202 percent YoY to Rs 16,315 crore from Rs 5,405 crore in Dec 2024. EBITD grew by 127 percent to Rs 368 crore from Rs 162 crore, and net profit grew 73 percent to Rs 102 crore from Rs 59.0 crore. EPS also improved 83 percent to Rs  0.11 per share, highlighting consistent shareholder returns.

Swiggy Ltd: revenue from operations increased 54 percent YoY to Rs 6,148 crore from Rs 3,992 crore in Dec 2024. EBIDT dipped to Rs -783 crore from Rs -726 crore, and net profit dipped to Rs -1,065 crore from Rs -799 crore. EPS also to Rs  -3.86 per share, highlighting gradual improvement over the quarters.

On a YoY basis, Eternal Ltd delivered exceptionally strong growth, with revenue more than tripling and profitability expanding across EBITDA, net profit, and EPS. In contrast, Swiggy Ltd posted healthy revenue growth but reported deeper EBITDA and net losses, reflecting continued investment-led expansion and margin pressure despite scale improvement.

Business Outlook

Eternal Ltd: Management remains confident of medium-term margin expansion toward the 5 to 6 percent Adjusted EBITDA range, with mature markets like Delhi NCR already nearing steady-state levels. As operating leverage strengthens and competitive intensity rationalizes, further margin upside is expected, supported by infrastructure maturity and easing expansion costs.

On growth, NOV momentum remains robust across cohorts, with mature cities growing 55 percent YoY and newer metros exceeding 100 percent YoY. While near-term volatility may persist due to competitive pricing, a rational environment could accelerate store expansion beyond 3,000 outlets and sustain triple-digit NOV growth.

Swiggy Ltd: food delivery outlook remains centred on expanding demand through targeted propositions like Eatright and affordability-led initiatives. Management has reiterated 18 to 20 percent YoY GOV growth guidance, supported by higher AOV cohorts, growing subscriber penetration under Swiggy One, and sustained festive-season advertising momentum.

On margins, the company targets steady expansion toward 4.5 to 5 percent Adjusted EBITDA as a percentage of GOV. Contribution margin gains, improved fleet utilization, AOV expansion, and operating leverage on variable costs are expected to gradually offset take-rate moderation from subscriber-led affordability initiatives.

Conclusion

Eternal Limited has clearly strengthened its leadership through disciplined execution, margin expansion, and improved unit economics across food delivery and quick commerce. Positive EBITDA in emerging segments and strong NOV momentum indicate operating leverage is kicking in, positioning the company for sustainable, profitability-led growth in the near term.

Swiggy Ltd, while still loss-making at the consolidated level, continues to demonstrate strong demand traction, user growth, and rapid scaling of quick-commerce. Its strategy reflects a deliberate trade-off prioritising scale and market penetration today to potentially unlock profitability and stronger competitive positioning over the medium term.

Overall, Eternal leads in profitability, margin stability, and operating leverage, making it stronger in financial performance. Swiggy, however, leads in aggressive expansion, user growth, and quick-commerce scale. The investor can choose either stocks based on their perspective: Eternal shows more earnings visibility, while Swiggy offers high-growth, scale-driven potential.

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