Zomato has decisively outperformed its closest rival Swiggy in the second quarter of FY26, posting robust revenue growth and a return to profitability. The food delivery giant reported a consolidated revenue of ₹13,590 crore, up 183% year-on-year, and a net profit of ₹65 crore, marking a significant turnaround from previous quarters. In contrast, Swiggy’s aggressive expansion in quick commerce led to a widened net loss of ₹1,092 crore despite a 54% rise in revenue to ₹5,561 crore.
Zomato’s Financial Strength and Strategic Execution
Zomato’s Q2 performance reflects strong operational efficiency, improved margins, and disciplined cost management. The company’s focus on core food delivery, coupled with strategic acquisitions and streamlined logistics, has helped it scale profitably. Its adjusted EBITDA turned positive, supported by higher average order values and increased customer retention.
The company also benefited from its dominance in metro cities and tier-1 markets, where premium offerings and subscription models have gained traction. Zomato’s quick commerce vertical, Blinkit, showed early signs of profitability, contributing to the overall margin improvement.
Swiggy’s Struggles with Expansion Costs
Swiggy, on the other hand, continues to face margin pressure due to its aggressive push in quick commerce through Instamart. While revenue grew to ₹5,561 crore, total expenses surged to ₹6,711 crore, driven by higher delivery costs, advertising spends, and employee benefits. The company’s adjusted EBITDA loss widened to ₹695 crore, up 104% from the previous year.
Despite narrowing losses sequentially, Swiggy’s operational challenges highlight the risks of rapid scaling without adequate cost controls. The company is now exploring fundraising options, including a ₹10,000 crore QIP, to strengthen its balance sheet and support future growth.
Market Implications and Trading Strategy
Zomato’s strong Q2 results position it as a favorable pick for investors looking for exposure to the digital consumption theme. The stock’s technical setup indicates bullish momentum, with potential for further upside if profitability sustains.
This is an ideal scenario for deploying stock options and best options trading strategies to capitalize on earnings-driven volatility. Traders can explore directional trades, spreads, and hedged setups to manage risk while targeting returns.
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Conclusion
Zomato’s Q2 FY26 results mark a pivotal moment in India’s food delivery landscape. With strong revenue, improved margins, and a return to profitability, the company has set a new benchmark for operational excellence. As Swiggy grapples with expansion-related losses, Zomato’s disciplined growth strategy offers a compelling case for investors. Backed by expert guidance from Eqwires, market participants can navigate this evolving sector with clarity and conviction.
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