How Fast Did Zepto Grow In FY26?
Quick commerce giant Zepto delivered another year of explosive growth in FY26, doubling its revenue as the company continued to expand aggressively across India’s rapidly evolving instant delivery market.
According to the company’s updated draft red herring prospectus (UDRHP) filed with the Securities and Exchange Board of India (SEBI), revenue from operations surged 104% to ₹22,624 crore in FY26 from ₹11,110 crore in FY25.
The sharp growth highlights the increasing adoption of quick commerce services among Indian consumers, who are increasingly relying on platforms for the delivery of groceries, household essentials, personal care products, electronics, and daily use items within minutes.
The strong financial performance comes as Zepto prepares to raise ₹8,010 crore through a fresh issue as part of its upcoming initial public offering (IPO).
What Is Driving Zepto’s Revenue Growth?
Founded by Aadit Palicha and Kaivalya Vohra, Zepto has rapidly expanded its operational footprint across the country.
As of March 2026, the company operated more than 1,139 dark stores and processed over 1.75 million orders every day.
The sale of products remained Zepto’s largest source of revenue, contributing nearly 78% of total operating income.
Revenue from product sales increased 92% to ₹17,588 crore during FY26, compared to ₹9,145 crore in the previous fiscal year.
The company now offers more than 46,600 products across multiple categories through its network of hyperlocal fulfillment centers.
Beyond product sales, Zepto also witnessed significant growth in its ancillary revenue streams.
How Are Advertising And Platform Services Contributing?
Advertising has emerged as one of Zepto’s fastest growing business segments.
Advertising revenue jumped 2.5 times to ₹1,636 crore in FY26 as brands increasingly leveraged the platform to reach consumers at the point of purchase.
Revenue from warehousing, packaging, and last-mile services more than doubled to ₹2,780 crore, reflecting the scale of the company’s logistics network.
Platform services contributed another ₹564 crore to overall revenue.
In addition, Zepto earned ₹505 crore from non-operating income, including interest earned on fixed deposits and treasury investments, taking its total income for FY26 to ₹23,128 crore.
The diversification of revenue streams indicates Zepto’s growing ability to monetize its ecosystem beyond pure commerce transactions.
Why Did Losses Increase Despite Revenue Growth?
While revenue doubled, Zepto’s losses continued to widen as the company invested heavily in expansion, logistics, warehousing, and customer acquisition.
The company reported a net loss of ₹5,905 crore in FY26, up 26% from ₹4,700 crore in FY25.
Procurement costs remained the largest expense category, accounting for nearly 63% of total expenditure. Product procurement expenses increased 90% to ₹18,199 crore during the year.
Employee benefit expenses rose 44% to ₹1,785 crore, including ₹557 crore in employee stock option (ESOP) costs.
Delivery and handling expenses surged over 90% to ₹3,046 crore, while dark store operating costs reached ₹2,150 crore.
Advertising and promotional spending climbed to ₹1,389 crore as Zepto continued investing aggressively to gain market share in an increasingly competitive quick commerce landscape.
Overall expenditure increased 79% to ₹29,027 crore in FY26.
How Does Zepto Compare With Rivals?
India’s quick commerce market remains one of the most fiercely contested sectors in the startup ecosystem.
While Zepto reported revenue of ₹22,624 crore, market leader Blinkit generated ₹37,779 crore in revenue during FY26 and achieved a positive EBITDA of ₹430 crore.
Meanwhile, Swiggy Instamart reported revenue of ₹3,859 crore but posted an EBITDA loss of ₹3,063 crore.
Despite its widening losses, Zepto improved operational efficiency. Its expense-to-earning ratio declined to 1.28, indicating better cost management relative to revenue growth.
By the end of FY26, the company held current assets worth ₹9,638 crore, including cash and bank balances of ₹973 crore.
What Does This Mean For Zepto’s IPO?
The latest financials showcase both the opportunity and challenge facing Zepto ahead of its public market debut.
While the company has demonstrated exceptional revenue growth and market expansion, investors will closely monitor its path toward profitability and margin improvement.
With over 1,100 dark stores, a rapidly growing advertising business, and strong consumer adoption, Zepto enters its IPO journey as one of India’s largest and fastest-growing technology companies.
