Swiggy vs. Zomato: Q3 FY25 Comparison & Profitability Analysis

  

Swiggy vs. Zomato: Q3 FY25 Comparison & Profitability Analysis

After analyzing Swiggy’s and Zomato’s Q3 FY25 financials, we can compare their performance and understand why Zomato is profitable while Swiggy continues to post losses.



📊 Financial Comparison: Swiggy vs. Zomato (Q3 FY25)

MetricSwiggy (Q3 FY25)Zomato (Q3 FY25)
Revenue₹3,993 Cr (+31% YoY)₹5,405 Cr (+64% YoY)
Net Profit/Loss₹(-799) Cr (Loss)₹124 Cr (Profit)
EBITDA Margin-4.6% (Negative)+2.5% (Positive)
GOV (Gross Order Value)₹12,165 Cr (+38% YoY)₹14,410 Cr (+68% YoY)
Quick Commerce Revenue₹3,907 Cr (+88% YoY)₹3,497 Cr (+128% YoY)
Food Delivery Growth+19.2% YoY+21.7% YoY
Advertising & Sales Promotion Cost₹7,514 Cr₹421 Cr
Employee Expenses₹6,567 Cr₹689 Cr
Delivery & Logistics Cost₹11,269 Cr₹3,450 Cr

Key Takeaways from the Comparison:

✅ Zomato is profitable (₹124 Cr), while Swiggy is losing ₹799 Cr.
✅ Zomato's revenue is higher (₹5,405 Cr vs. ₹3,993 Cr), despite Swiggy’s aggressive expansion.
✅ Zomato spends far less on advertising & delivery costs compared to Swiggy.
✅ Swiggy’s quick-commerce business (Instamart) is growing but operating at a loss (-4.6% margins).
✅ Zomato’s Hyperpure (B2B segment) & Blinkit (quick-commerce) are contributing to profitability.

🔍 Why Is Zomato Profitable While Swiggy Is Not?

1️⃣ Cost Efficiency & Expense Control

✔ Lower Ad Spend – Zomato spends only ₹421 Cr on promotions vs. ₹7,514 Cr by Swiggy.
✔ Lower Employee Costs – Zomato’s employee expenses are ₹689 Cr, while Swiggy’s are ₹6,567 Cr.
✔ Efficient Logistics – Zomato has optimized delivery partner payouts & order batching to reduce per-delivery costs.

→ Swiggy is burning cash aggressively to acquire users, while Zomato is optimizing its cost structure.

2️⃣ Better Unit Economics

📌 Zomato’s Food Delivery Business is Already Profitable

  • Segment EBITDA Margin: +5% in Zomato vs. -4.6% in Swiggy
  • Zomato has raised platform commission from restaurants, improving margins.

📌 Hyperpure (B2B) & Blinkit (Quick Commerce) Growth

  • Zomato's Hyperpure (restaurant supplies) revenue is ₹4,356 Cr, up 97% YoY.
  • Blinkit (quick-commerce) revenue grew 128% YoY, with a positive EBITDA margin.
  • Swiggy Instamart’s GOV grew 88% YoY but is unprofitable (-4.6% margins).

→ Zomato has diversified revenue streams, whereas Swiggy is highly dependent on food delivery.

3️⃣ Market Position & Competitive Strategy

✔ Zomato is Benefiting from Swiggy’s Losses

  • Swiggy is offering steep discounts on food & Instamart orders to gain market share.
  • Zomato is capitalizing by improving margins without heavy discounts.
    ✔ Zomato Has a First-Mover IPO Advantage
  • Swiggy’s recent IPO funds (₹43,589 Cr) are being used for expansion, while Zomato is already profitable and doesn’t need fresh capital to survive.

→ Swiggy is spending more to fight competition, while Zomato is reaping the benefits.

🚀 Will Zomato’s Profitability Continue or Is It Temporary?

✔ Reasons Profitability May Continue

✅ Zomato is scaling Blinkit profitably, reducing dependence on food delivery.
✅ Hyperpure (B2B business) is growing fast and improving margins.
✅ Operating costs are under control, and revenue per order is rising.
✅ Ad revenue from restaurants is growing, adding a new monetization layer.

❌ Risks to Zomato’s Profitability

❌ Regulatory Challenges (GST & Gig Worker Rules)

  • Zomato faces ₹401 Cr in GST liabilities for delivery partner fees, which may impact margins.
  • Possible increase in delivery costs if the government enforces better wages for gig workers.

❌ Competition from ONDC & Zepto

  • Government-backed ONDC is offering food delivery at cheaper rates, which may force Zomato to cut commissions.
  • Zepto’s aggressive expansion could challenge Blinkit’s dominance.

❌ Profitability Depends on Blinkit

  • If Blinkit’s quick-commerce profitability weakens, Zomato’s overall margins may be affected.

🏆 Final Verdict: Swiggy vs. Zomato – Which Is a Better Investment?

✅ Zomato is the better investment in the short term.

  • Already profitable with a clear roadmap to sustain it.
  • Revenue & margins are improving, and diversification is helping.
  • Lower dependency on cash burn compared to Swiggy.

❌ Swiggy remains a high-risk investment.

  • Heavy cash burn & high losses despite revenue growth.
  • Aggressive expansion without clear profitability roadmap.
  • May take 2+ years to break even, unlike Zomato, which is already profitable.

🔎 Conclusion: Should You Invest in Swiggy or Zomato?

✅ If you want a stable, growing, and already profitable stock → Buy Zomato.
✅ If you have high risk tolerance and believe in long-term quick commerce growth → Speculative Buy on Swiggy.
❌ If you prefer safer investments, Swiggy is not yet profitable, making it a riskier bet.

🚀 Winner: ZOMATO (For Now!) 🎯


Location: RJPX+MQ Chiyyavaram, Andhra Pradesh, India

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