Zomato and Swiggy near Meituan’s per-order profits in a market 22x smaller, resurfacing a Q1 FY27 Bernstein estimate
Bernstein estimates from Q1 FY27, resurfacing now, showed Zomato and Swiggy generated about $0.20 adjusted EBITDA per order, versus Meituan’s peak $0.30. India’s lower delivery penetration offers runway, but expansion into lower-income cohorts could dilute average order values and margins.
What happened
Zomato and Swiggy are nearing Meituan’s per-order profitability despite India’s food-delivery market being about 22 times smaller than China’s. Bernstein says
Key facts
- China food delivery market: approximately $230 billion in CY25
- India food delivery market: more than $10 billion in FY26
- China market is nearly 22x India’s market
- Meituan peak operating profit per order: approximately $0.30 in Q2 2024
- Zomato and Swiggy adjusted EBITDA per order: approximately $0.20 in Q1 FY27
Why this matters
Zomato and Swiggy’s near-Meituan per-order EBITDA shows meaningful operating leverage, but protecting delivery density and basket economics will be critical as they push into lower-income cohorts.
What to watch
- Adjusted EBITDA per order and contribution margin trends as order volumes move beyond major metros.
- Average order value, delivery distance and discount per order in tier-2/tier-3 cities.
- Monthly transacting customer growth versus frequency growth among existing urban users.
- Restaurant ad revenue, membership penetration and take-rate trends.
- Delivery-partner supply costs, rider utilization, batching rates and regulatory changes affecting gig-worker economics.
Also reported by
- Entrackr · Newsletter — Same time