Behind the Resurgence: Zomato, Swiggy Regain Food Delivery Momentum in the Dec Quarter

Why It Matters

The renewed volume growth re‑establishes food delivery as the profit engine for Zomato and Swiggy, giving them pricing leeway and stronger network effects that raise barriers for new competitors. It also signals a $25 billion market opportunity by FY30, underscoring the sector’s strategic importance.

Key Takeaways

• Zomato G​OV up 21.3%, Swiggy 20.5% in Q4
• MTUs rose 21.5% to 24.9M and 18.1M respectively
• Adjusted EBITDA grew 25% (Zomato) and 48% (Swiggy)
• Platform fee increased to Rs 15, boosting margins
• Market share: Zomato 57.3%, Swiggy 42.7% in Q4

Pulse Analysis

The Indian online food‑delivery market, valued at roughly $9 billion in FY25, accelerated sharply in the last quarter of 2025. Zomato and Swiggy together delivered more than 20% growth in gross order value, a pace that outstripped analyst forecasts and reversed a multi‑quarter slowdown. This rebound was driven by a surge in price‑sensitive shoppers, whose average basket sits between Rs 100 and Rs 200, and by a renewed focus on expanding the user base rather than merely trimming margins. The momentum positions the duopoly to capture a larger slice of an industry projected to reach $25 billion by FY30.

Both platforms have leaned into affordability to fuel volume. Swiggy’s 99‑store and Bolt initiatives now account for over 20% of its food orders, while Zomato trimmed its free‑delivery threshold to Rs 99 for Gold members and rolled out an ‘under Rs 250’ menu. In parallel, the companies raised the flat platform charge from Rs 1 to Rs 15, directly bolstering adjusted EBITDA, which rose 25% at Zomato and 48% at Swiggy. These pricing tweaks, combined with targeted campaigns for health‑conscious diners, illustrate a calibrated strategy that balances growth with margin preservation.

The resurgence arrives as potential rivals prepare to enter the space. Rapido’s Ownly service is expanding beyond Bengaluru, and Flipkart is piloting a food‑delivery offering that could scale nationally by year‑end. Higher order volumes enhance network effects, giving Zomato and Swiggy leverage in negotiations with restaurants and delivery partners, and raising the entry barrier for newcomers. Investors view the strong quarter as validation of the duopoly’s defensive moat, while the projected market expansion to $25 billion underscores the long‑term upside for capital‑intensive players.