Zepto DRHP Analysis — Quick Commerce Sector Report

FY26 Revenue

₹22,624 Cr

+104% YoY from ₹11,110 Cr in FY25

Dark Stores (Mar 2026)

1,139

Targeting ~1,900 new stores by FY30

Net Loss FY26

₹5,905 Cr

+26% YoY; EBITDA loss per order improving

IPO Size

₹8,010 Cr

Fresh issue + OFS; first pure-play qcom listing

Sources: Zepto Updated DRHP (SEBI filing, June 9 2026); Inc42; Business Standard; Outlook Business.

Top 10 DRHP Findings

Distribution: 1,139 Dark Stores Across 70+ Cities

As of March 31, 2026, Zepto operated 1,139 dark stores, up from 1,029 in FY25. Stores are concentrated in Tier-1 metros. Each store operates within a 2–3 km delivery radius, targeting a 10-minute fulfillment window.

Order Volume: 64 Crore Orders in FY26

Zepto processed 640 million orders in FY26, averaging over 1.75 million per day. Q4 FY26 alone saw 210 million orders (2.33 million/day). Orders per store per day rose to 2,140 from 1,425 a year prior, indicating improving store productivity.

Catalogue: 46,000+ SKUs Per Store

Zepto's dark stores carry more than 46,000 product SKUs — spanning groceries, pharmacy (Zepto Superstore), prepared food (Zepto Café), and household goods. This is significantly above industry standard of ~2,500–5,000 SKUs for smaller-format quick-commerce dark stores.

Revenue Composition: Goods + Services

Of the ₹22,624 Cr operating revenue in FY26, ₹17,588 Cr came from goods sales and ₹5,022 Cr from services — including warehousing, packaging, last-mile charges, platform services, subscription fees, advertisement revenue, and franchisee fees. Ad revenue (via Zepto Atom) has crossed ₹1,000 Cr annualised run rate.

Cost Structure: Procurement Dominates

Total FY26 expenses reached ₹29,027 Cr (+79% YoY), outpacing revenue growth. Key cost components:

Procurement of traded goods — largest single line item
Employee costs — ₹1,785 Cr (+44% YoY, including ESOP charges)
Advertising & promotion — ₹1,389 Cr
Technology & cloud infrastructure — major capex bucket in IPO proceeds
Dark store leases — ₹1,735 Cr earmarked from IPO proceeds for existing leases

Unit Economics: Losses Narrowing Per Order

Adjusted EBITDA loss per order improved from ₹136.15 in FY25 to ₹78.75 in FY26. In Q4 FY26 specifically, it further narrowed to ₹59.40 — approximately halved year-on-year. This is a key metrics investors will scrutinise before the IPO.

Users: 4.79 Crore Annual Transacting Users

Annual transacting users (ATU) reached 47.9 million at March 2026, up 25% YoY. Net Receivables Value (total order value net of discounts plus fees) grew from ₹5,232 Cr in FY24 to ₹24,816 Cr in FY26, reflecting rapid monetisation.

IPO Use of Proceeds: Expansion-Led

The ₹8,010 Cr fresh issue is allocated as follows:

New dark store build-out (1,900 stores by FY30) — ₹1,629 Cr
Lease rentals, existing stores — ₹1,735 Cr
Technology & cloud infrastructure — ₹1,325 Cr
Marketing & brand promotion (Zepto Marketplace) — ₹520 Cr
Balance: working capital & general corporate purposes

Competition Disclosure: Blinkit Has 4× the Store Count

The DRHP explicitly names Blinkit (Eternal/Zomato) and Swiggy Instamart as primary competitors. Blinkit operated 2,000+ dark stores by end-2025 — more than four times Zepto's then-network. The DRHP acknowledges that Blinkit and Swiggy have larger balance sheets and wider store networks.

Regulatory Risks: ED Summons Disclosed

Co-founders Aadit Palicha and Kaivalya Vohra received summons from the Enforcement Directorate under FEMA earlier in 2026, disclosed as a risk factor in the updated DRHP. Additionally, the company remains loss-making with no confirmed path to full EBITDA profitability disclosed in the filing.

Sources: Zepto Updated DRHP (SEBI, June 9 2026); Inc42 (June 2026); Business Standard (June 2026); BusinessToday (June 2026); PTI/Newsdrum (June 2026).

Competitive Comparison

Latest available full financial year data. Where data is unavailable, this is noted. BigBasket is privately held; detailed financials are limited.

Metric	Zepto	Blinkit (Eternal)	Swiggy Instamart	BigBasket (BB Now)
Parent / Status	Independent; IPO filed Jun 2026	Eternal Ltd (formerly Zomato); listed	Swiggy Ltd; listed Nov 2024	Tata Digital (Tata Group); private
Revenue FY26	₹22,624 Cr	Not separately disclosed (part of Eternal). Q1 FY26 revenue: ₹2,400 Cr	Swiggy total FY26: ₹23,561 Cr (Instamart is largest segment)	Not publicly disclosed. FY26 target: 50–60% growth on FY25 base
Net Loss FY26	₹5,905 Cr	Blinkit reached adj. EBITDA positive Q3 FY26	Contribution margin: –1.8% Q4 FY26 (improving). Full P&L not separated	Not publicly disclosed
Dark Stores (Mar 2026)	1,139 stores	2,000+ stores (target met end-2025)	1,143 stores (Q4 FY26)	~850–900 large-format stores
Cities Served	70+	Not separately disclosed; major metros + Tier 2	129 cities (Q4 FY26)	Not publicly disclosed; primarily metro & Tier-1
Catalogue (SKUs)	46,000+	30,000+	Not separately disclosed	~25,000 (large-format stores)
Market Share (GMV)	~21–30% (estimates vary by metric)	~45–50%+ market leader	~20–27%	~5–7% (challenger)
Delivery Promise	10 minutes	10 minutes	~18 minutes (SLA improving)	10–20 minutes (large-format stores)
Key Cost Driver	Procurement + leases + marketing (₹1,389 Cr ad spend)	Dark store expansion (₹2,600 Cr injected by Eternal 2025–26)	Dark store leases + fulfilment; shifting to inventory-led model	Dark store conversion + Tata Group supply chain
Unit Economics	EBITDA loss ₹78.75/order FY26 (down from ₹136.15); Q4: ₹59.40	Contribution positive across network by late 2024; Adj. EBITDA positive Q3 FY26	Contribution margin –1.8% Q4 FY26; targeting breakeven Jun 2026	Not publicly disclosed
Avg Order Value	Not separately disclosed in DRHP	Rising; analysts flag above-average AOV vs peers	₹700 AOV (Q4 FY26, +33% YoY)	Higher AOV due to large basket / bulk grocery focus
Competitive Edge	Dense metro coverage; Zepto Café; Zepto Atom (retail media); fast ATU growth	Largest network; Eternal ecosystem (Zomato food + Blinkit); private label rollout	Swiggy app cross-sell (food + grocery); 129-city reach; capacity headroom	Tata supply chain depth; Croma/1mg dark store repurposing; grocery staples strength
Key Risk	Persistent losses; ED summons on founders (FEMA); smaller store count vs Blinkit	Regulatory (IOCC transition); category cannibalisation from private label	Slower store expansion vs Blinkit; margin volatility	Revenue decline in FY25; lagging market share; full financials opaque
Expansion Plan	~1,900 new dark stores by FY30 (IPO proceeds)	3,000 stores target by Mar 2027	Quality/density over volume; 4.8 mn sq ft warehouse area	~900 large-format stores by Mar 2026; Tata portfolio integration

Sources: Zepto Updated DRHP (SEBI, June 9 2026); Eternal/Zomato investor disclosures; Swiggy Q4 FY26 earnings (Storyboard18, May 2026); Business Standard (Jun 2026); Inc42 (Jun 2026); Brineweb Blinkit analysis (Apr 2026); Outlook Business Instamart Q4 FY26; Business Standard BigBasket (Dec 2025). Market share estimates vary by source and measurement period. BigBasket financials are not publicly disclosed; data is drawn from company statements and analyst reports.

Key Observations

Distribution & Network

Zepto's 1,139-store network trails Blinkit (2,000+) significantly but is broadly parity with Instamart (1,143). BigBasket lags at ~850–900 stores.
Zepto's per-store order productivity (2,140 orders/day) is improving rapidly, suggesting better utilisation of existing infrastructure.
The planned 1,900 additional stores by FY30 would require sustained IPO-funded capex deployment — execution risk is material given current loss run-rate.

Costs

Total FY26 expenses of ₹29,027 Cr outpace revenues of ₹22,624 Cr. Procurement is the dominant cost driver.
Adjusted EBITDA loss per order nearly halved in one year — from ₹136 to ₹79 — but the company is still not contribution-positive at the platform level.
Marketing spend of ₹1,389 Cr reflects intensifying competitive pressure from Blinkit and Instamart in user acquisition.

Competition

Blinkit is structurally ahead: more stores, higher market share (~45–50%), and the only player to achieve adjusted EBITDA profitability (Q3 FY26).
Instamart is converging: 129 cities, 1,143 stores, contribution margin approaching breakeven, and Swiggy's food-delivery ecosystem as a cross-sell lever.
BigBasket's pivot to full quick-commerce (BB Now) is a wild card; Tata Group's supply chain depth and Croma/1mg integration are differentiated — but market share remains small at 5–7%.
Emerging threats: Flipkart Minutes and Amazon Now are expanding, though sub-3% share today.

Investor note: Zepto is the first pure-play quick-commerce company to file for listing on Indian exchanges. Its IPO positions it against already-listed Eternal (Blinkit) and Swiggy — both of which have deeper capital bases. The key investment question is whether Zepto's ~30% market share, improving unit economics, and retail media business can sustain growth while closing the gap to profitability at scale.

This section is analytical commentary based on disclosed filings and public data. Not investment advice. See footer disclaimer.