Quick Commerce
Zepto FY26: Revenue Double But Losses Grow 25%:What's happening?
Zepto FY26 saw revenue grow 103.6% to Rs. 22,624 Cr, while operating cash burn improved 25%. Explore its losses, unit economics, and IPO outlook
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Zepto has quickly become one of India’s leading quick-commerce companies, but how strong is the business behind its rapid growth? Its FY2025-26 Annual Report gives investors a closer look at its revenue growth, losses, customer base and path to profitability. Let's have a closer look.
Zepto FY26: Key Consolidated Financials Analysis
Particulars (in Rs. Cr) | FY26 | FY25 | YoY |
|---|---|---|---|
Revenue from operations | 22,623.6 | 11,109.9 | +103.6% |
Other income | 504.8 | 492.8 | +2.4% |
Total income | 23,128.4 | 11,602.8 | +99.3% |
Total expenses | 29,026.7 | 16,241.1 | +78.7% |
Loss before tax | 5,905.2 | 4,695.4 | Higher loss |
Audited consolidated loss for the year | 5,886.9 | 4,707.4 | Higher loss |
Operating cash flow | -3,462.4 | -4,624.8 | Burn improved |
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Source: Zepto Annual Report FY25-26
1. Revenue More Than Doubled
Zepto revenue from operations has shown an increase of around 103%, from Rs. 11,109.9 Cr to Rs. 22,623.6 Cr in FY26. But revenue growth becomes more meaningful when we look at where that revenue came from.
2. Where Zepto's Revenue Comes From
The updated Zepto IPO disclosure tells that it does not rely entirely on selling products
FY26 operating revenue mix
Revenue stream | FY26 ( in Rs. Cr.) | Approx. share |
Sale of traded goods | 17,587.9 | 77.7% |
Sale of services | 5,022.5 | 22.2% |
Total operating revenue | 22,623.6 | 100% |
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Within services, Zepto generated:
Rs. 2,779.8 Cr from warehousing, packaging and last-mile services
Rs. 1,635.7 Cr from advertising
Rs. 564.2 Cr from platform services
Rs. 28.3 Cr from subscriptions
Rs. 14.5 Cr from franchisee fees.
Hence, it matters as it shows that Zepto would building multiple monetisation layers around the same customer and order ecosystem. Advertising, in particular, has become an increasingly important revenue stream.
3. Expenses Are Also Growing Rapidly
The expenses of Zepto increased from Rs. 16,241.1 Cr to Rs. 29,026.7 Cr in FY26. That is an increase of nearly 79%. However, revenue grew faster at approximately 104%. This could be an encouraging sign from an perspective of operating-leverage
But the absolute expense base remains considerably higher than revenue, which is why the company continues to report a substantial loss. The biggest expense remains the purchase of traded goods, which is natural for a retail or quick-commerce business.
4. Is Zepto's Store Network Becoming More Efficient?
Accross India around 1139 dark stores there of Zepto in FY26. But the more important metric is orders processed per store per day.
Period | Orders/store/day |
|---|---|
FY24 | 1,325 |
FY25 | 1,565 |
FY26 | 1,677 |
Q4 FY26 | 2,140 |
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This indicates that Zepto isn't merely adding more dark stores. Its existing network can also becoming more productive. The company has increasingly focused on building dense clusters in markets where demand already exists, rather than simply expanding geographically at any cost.
6. The Cost Structure Explains the Profitability Challenge
The expenses of Zepto in FY26 included:
Expense | FY26 |
Purchase of traded goods | Rs. 18,484.98 Cr |
Delivery & handling | Rs. 3,046.34 Cr |
Other expenses | Rs. 4,838.32 Cr |
Employee benefits | Rs. 1,784.67 Cr |
Depreciation & amortisation | Rs. 894.26 Cr |
Finance costs | Rs. 264.79 Cr |
Total expenses | Rs. 29,026.75 Cr |
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Here, major cost is the purchase of traded goods. But other expenses altogether create a substantial cost base on top of the cost of inventory. Thus, this could explains why doubling revenue does not automatically translate into profits.
7. Unit Economics Are Improving
This is probably the most encouraging financial trend for investors. Zepto's adjusted EBITDA loss per order improved to Rs. 78.75 per order in FY26 from Rs. 136.15 per order in FY25. Zepto could be moving closer to breakeven at the order level.Therefore, the company has not yet demonstrated that its current scale can produce positive adjusted EBITDA per order consistently.
8. Funding Before IPO
Zepto’s FY26 Annual Report had proposed raising up to Rs. 817 Cr via Pre-IPO CCPS for growth, expansion, marketing and general corporate needs, with 2.05% dilution on conversion.
However, Zepto postponed its plans for an IPO in August 2026, and instead opted to raise another $105 Mn (over Rs. 1,000 Cr) via a pre-IPO round. The extra capital will aid the company as it readies itself for its next IPO attempt.
9. Why did the company delay the IPO?
In August 2026, Zepto put its IPO plans on hold and decided to raise around $105 Mn (over Rs. 1,000 Cr) through a pre-IPO round. Investors were said to be seeking a lower valuation and better financials, with particular emphasis on lower losses and cash burn. Zepto gets more time to beef up its books ahead of possible February-May 2027 listing.
10. Revenue Growth Didn’t Lift Zepto’s Valuation
Zepto’s revenue more than doubled in FY26, showing strong growth in the business. However, the company kept reporting major losses and negative operating cash flow. Therefore, when valuing Zepto Unlisted Shares, investors may pay more attention to its profitability, improving unit economics, and cash-flow position.
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