{"id":11189,"date":"2025-09-08T11:07:04","date_gmt":"2025-09-08T11:07:04","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/08\/portfolio-cravings-with-zomato-and-swiggy-soaring-which-stock-should-you-order-markets-news\/"},"modified":"2025-09-08T11:07:04","modified_gmt":"2025-09-08T11:07:04","slug":"portfolio-cravings-with-zomato-and-swiggy-soaring-which-stock-should-you-order-markets-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/08\/portfolio-cravings-with-zomato-and-swiggy-soaring-which-stock-should-you-order-markets-news\/","title":{"rendered":"Portfolio Cravings: With Zomato And Swiggy Soaring, Which Stock Should You Order? | Markets News"},"content":{"rendered":"


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Last Updated:<\/span>

Zomato surged nearly 52%, while Swiggy climbed 22%, driven by order growth, improving quick commerce prospects; Which share should you buy?<\/h2>\n
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Zomato Vs Swiggy: Which one should you buy?<\/p>\n<\/figure>\n

The past six months have delivered strong returns for food-tech investors. Zomato surged nearly 52%, while Swiggy climbed 22%, driven by robust order growth and improving quick commerce prospects. But with a shifting macro environment and changes in platform fees, the key question for investors is which of the two is better positioned to lead over the next year.<\/p>\n

GST changes and platform fees<\/h3>\n

The recent revision in GST rules \u2014 imposing an 18% tax on delivery fees \u2014 initially raised concerns. However, analysts say the impact will be limited. According to JM Financial, delivery charges are waived on nearly two-thirds of orders. In quick commerce, Blinkit already levied GST, while Swiggy\u2019s Instamart waived most charges. Historically, both platforms have successfully passed on such costs to customers.<\/p>\n

To counter the impact of lowering the minimum order value for subscribers, both companies recently raised platform fees \u2014 Zomato to Rs 14.75 per order and Swiggy to Rs 15 per order. While this supports margins, analysts caution that the gains may not fully reflect in EBITDA, since lower order thresholds also reduce overall revenue per order.<\/p>\n

Turning the cycle in food delivery<\/h3>\n

According to Motilal Oswal, the slowdown in food delivery growth \u2014 stuck around 17\u201318% \u2014 appears set to reverse. Festive demand, improved consumer sentiment, and GST-driven higher disposable incomes could push order growth beyond 20% in the coming quarters.<\/p>\n

The brokerage now forecasts a 23% CAGR in gross order value for FY26\u201328, compared to 19% earlier. Both Swiggy and Zomato are expected to benefit, though the momentum may not be evenly shared.<\/p>\n

Quick commerce: the real growth driver<\/h3>\n

Quick commerce remains the centerpiece of the growth story. Zomato\u2019s Blinkit and Swiggy\u2019s Instamart are transitioning from an aggressive discount-and-expansion model to one focused on efficiency.<\/p>\n

Swiggy has slowed its rollout pace to optimize existing stores, while Blinkit is benefiting from density and scale. As customer acquisition costs decline, analysts expect contribution margins to improve steadily.<\/p>\n

DAM Capital notes that Blinkit\u2019s breakeven path is clearer, with operating breakeven expected by early FY27. Instamart, while improving, continues to lag but is narrowing its losses. This divergence could influence near-term investor preference.<\/p>\n

Who has the edge?<\/h3>\n

Brokerages remain divided. Motilal Oswal has upgraded Swiggy to Buy<\/em> with a target price of Rs 560 \u2014 implying a 32% upside \u2014 citing accelerating food delivery growth and faster improvements in quick commerce. Zomato retains a Buy<\/em> rating with a target of Rs 420, or 29% upside, supported by Blinkit\u2019s momentum and stable food delivery operations.<\/p>\n

JM Financial, however, is more cautious, warning that higher platform fees may not deliver the same margin boost due to lower minimum order values.<\/p>\n

Stability vs. turnaround<\/h3>\n

Both companies are entering a new phase of growth with strong tailwinds \u2014 festive demand, easing competition, and favorable policy support. Zomato offers stability and scale, backed by profitability and Blinkit\u2019s leadership, while Swiggy offers greater upside potential if it can deliver margin improvements and reduce Instamart\u2019s losses.<\/p>\n

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Aparna Deb<\/a><\/p>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

First Published:<\/span><\/p>\n
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September 08, 2025, 15:44 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> markets<\/a> Portfolio Cravings: With Zomato And Swiggy Soaring, Which Stock Should You Order?<\/span><\/div>\n
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Last Updated:September 08, 2025, 15:44 IST Zomato surged nearly 52%, while Swiggy climbed 22%, driven by order growth, improving quick commerce prospects; Which share should you buy? Zomato Vs Swiggy: Which one should you buy? The past six months have delivered strong returns for food-tech investors. Zomato surged nearly 52%, while Swiggy climbed 22%, driven…<\/p>\n","protected":false},"author":1,"featured_media":11190,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-11189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/11189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=11189"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/11189\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/11190"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=11189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=11189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=11189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}