Swiggy vs Zomato: Analyzing Q2FY25 financial and operational performance

SUMMARY

Zomato outperformed Swiggy in Q2 FY25 across key metrics, with higher GOV, revenue, and profitability, driven by strategic acquisitions, operational efficiency, and dominance in quick commerce.

Zomato fared much better in terms of profitability and other metrics as compared to Swiggy

The competition in the food delivery business and quick commerce continues to heat up. Recently listed Swiggy posted its first quarterly performance report post-debut for Q2 FY25. Let us compare Swiggy with its direct competitor, Zomato’s, Q2 FY25 results. Both companies showcased significant developments. Here’s a breakdown of their performance.

Swiggy vs Zomato: Gross order value (GOV): Who delivered more?

• Zomato: ₹17,670 crore

• Swiggy: ₹11,306 crore

Zomato outperformed Swiggy with a much higher GOV. One major factor for this can be attributed to Zomato's acquisition of Paytm’s entertainment ticketing business, which boosted its GOV numbers.

If we exclude this and compare it on a like-for-like GOV growth basis, Zomato achieved a 53% YoY growth, while Swiggy reported a 29.9% YoY growth. This highlights Zomato’s larger overall scale of business.

Food delivery GOV - core business

Zomato’s GOV for its food delivery business in Q2 FY25 stood at ₹9,690 crore (+5% QoQ), whereas Swiggy’s GOV was ₹7,191 crore (+5% QoQ).

Zomato’s GOV in the food delivery business is approximately 35% higher than Swiggy’s, demonstrating its stronger foothold in the core food delivery market.

Quick commerce

Zomato also leads in the quick commerce segment. Its GOV for the segment stood at ₹6,132 crore (+25% QoQ), compared to Swiggy’s ₹3,382 crore (+24.1% QoQ) for Q2 FY25.

Zomato’s quick commerce segment GOV is about 81% higher than Swiggy’s, indicating its dominant position.

Average order value (AOV)

• Swiggy: ₹499 (7.7% YoY increase from ₹463 in Q2 FY24)

• Zomato: ₹660 (8.7% YoY increase from ₹607 in Q2 FY24)

Zomato’s AOV grew faster and remained higher than Swiggy’s AOV, indicating stronger consumer spending per order.

Adjusted revenue comparison

• Zomato: ₹5,127 crore (58% YoY growth)

• Swiggy: ₹3,873 crore (26.5% YoY growth)

On the adjusted revenue front, Zomato leads, reflecting its larger GOV. With nearly double the growth rate of Swiggy, Zomato’s ability to convert orders into revenue appears more robust.

Also read: Swiggy Q2 results: Company could turn adjusted EBITDA positive by Q3FY26, says management

Profitability: A Key differentiator

• Zomato Adjusted EBITDA: ₹330 crore

• Swiggy Adjusted EBITDA: ₹(-)341 crore

Zomato has reached profitability, while Swiggy remains in the red. Swiggy's losses are primarily due to heavy spending on its quick commerce arm, Instamart. In contrast, Zomato reported that its quick commerce business is nearly breakeven at the adjusted EBITDA level.

Bottom Line Performance

Regarding net profitability, Zomato reported a profit of ₹176 crore in Q2 FY25, while Swiggy incurred a loss of ₹626 crore. On a YoY basis, Swiggy's net loss narrowed down from ₹657 crore in Q2 FY24. However, it has jumped moderately from a net loss of ₹611 crore in the June quarter.

Key Pointers

• Zomato’s acquisition of Paytm's entertainment ticketing business played a key role in its GOV growth.

• Swiggy’s Instamart continues to weigh on its profitability. Tracking metrics like customer acquisition cost (CAC) and order contribution margin will be essential.

• Zomato's average order value is 32% higher than Swiggy's, showcasing a significant advantage.

Conclusion

Zomato is currently ahead in key metrics such as GOV, revenue, and profitability, showcasing its strong business model and operational efficiency. Swiggy, though lagging in profitability, continues to demonstrate strong customer engagement and rapid growth in quick commerce.

As competition intensifies, both companies must focus on refining their business strategies, managing costs, and enhancing customer experiences to sustain growth in this highly competitive space.

Know More: Swiggy vs Zomato: How Swiggy stacks up against rival Zomato in food delivery and quick commerce

Disclaimer:

This article is only for educational purposes. We do not recommend any particular stock, securities and strategies for trading. The securities quoted are exemplary and are not recommendatory. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before trading and investing.