Zomato vs Swiggy: Which Stock to Buy After Q2 Results?

Zomato and Swiggy Post Mixed Q2 FY26 Results India’s top food-tech rivals, Zomato and Swiggy, have released their Q2 FY26 earnings. Both companies showed strong revenue growth but lower profitability, as heavy spending on marketing and quick-commerce expansion squeezed margins.

Zomato’s Profit Dips, Swiggy’s Losses Widen Zomato-parent Eternal saw its profit fall 63% YoY to Rs. 65 crore, while Swiggy reported a higher loss of Rs. 1,092 crore, up from Rs. 626 crore a year ago. Despite this, both companies posted strong topline growth: Zomato’s revenue surged 2.72x to Rs. 13,590 crore, and Swiggy’s grew 54% to Rs. 5,561 crore.

Quick Commerce — The Real Growth Engine Quick commerce continues to drive growth for both players. Zomato’s Blinkit contributed Rs. 9,891 crore, nearly 75% of total revenue, marking a 137% rise in net order value. Swiggy’s Instamart also doubled its contribution year-on-year, recording 100%+ growth for the third straight quarter. However, Blinkit is expanding much faster, adding 272 new stores in Q2 versus just 40 for Instamart.

Margin Pressure Persists as Competition Heats Up Both companies are investing aggressively in faster delivery times, category diversification, and dark-store infrastructure. This strategy is boosting market share but hurting near-term profitability. Analysts note that the current phase is about capturing scale and user loyalty even at the cost of margins.

Food Delivery Segment Shows Recovery Signs Zomato’s food delivery arm posted a 14% YoY rise in net order value, with profitability improving to 5.3% of NOV, its best-ever margin. Swiggy’s food delivery business also remained steady, reporting 18.8% YoY growth to Rs. 8,542 crore, despite sluggish consumer spending trends.

Analyst Take — Zomato Leads on Scale and Profitability
Analysts are largely bullish on Zomato. With Blinkit driving volume and profitability improvements, Zomato is showing operational leverage and a clearer path to breakeven. Swiggy, though growing fast, is burning more cash and facing a longer road to profitability.

Stock Performance and Investor Sentiment In the past year, Eternal shares have gained 27%, reflecting investor confidence in Zomato’s business model, though they’ve dipped 5% recently. Swiggy’s stock, meanwhile, is down 25% year-to-date ahead of its one-year listing anniversary, signalling weaker sentiment among investors. Please note that the above information is based on a Mint report and is for educational purposes only.

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