In the high-stakes “quick commerce wars,” Zepto’s financial performance for Q1 FY26 (April–June 2025) highlights a pivotal moment where the company significantly balanced its aggressive expansion with a push toward operational efficiency.
While the “burn” remains substantial due to the sheer scale of competition, the company has hit major internal milestones as it moves toward its planned late 2026/early 2027 IPO.
Q1 FY26 Financial Highlights
Reports from July and August 2025 indicate that Zepto’s monthly cash burn has stabilized despite a massive increase in its dark store network.
- Estimated Q1 Burn: Zepto burned approximately $37 million (₹310 crore) during the June 2025 quarter.
- Monthly Average: This averages to roughly ₹100–105 crore per month, a significant reduction from the ₹300 crore per month peaks seen during the aggressive 2024 festive season.
- The “EBITDA Breakeven” Milestone: By early February 2026, Zepto reportedly achieved EBITDA breakeven (excluding ESOP costs), a milestone reached several months ahead of its original 12–15 month target.
Revenue & Growth Context
The “burn” is being used to fuel massive top-line growth, with Zepto now operating as a $3 billion+ annual sales machine.
| Metric | FY2025 (Full Year) | Q1 FY2026 (Quarterly) | Status |
| Operating Revenue | ~₹11,110 Crore | ~₹3,800 Crore | Strong Growth |
| Net Loss | ₹3,367 Crore | ~$37M (Burn) | Narrowing |
| Dark Store Count | ~900 | 1,200+ | Expanding |
| Annualized GOV | $3.0 Billion | $4.0 Billion | Scaling |
Strategic Moves: IPO and “Reverse Flip”
Zepto’s financial management in early 2026 is laser-focused on public market readiness:
- Domicile Shift: In late 2025, Zepto completed its “reverse flip,” moving its legal headquarters from Singapore back to India. This was a prerequisite for its domestic listing.
- Confidential IPO Filing: The company confidentially filed its Draft Red Herring Prospectus (DRHP) with SEBI on December 26, 2025.
- The “Elcid” Investment: Just this week (Feb 23, 2026), Elcid Investments acquired a minor 0.039% stake in Zepto at a valuation of $2.26 billion. While this reflects a conservative “down” valuation compared to its $7 billion private rounds, it provides a benchmark for its public market entry.
The Competitive Landscape
Zepto’s $37M quarterly burn remains higher than its primary rivals, but it is gaining ground on unit economics:
- Blinkit (Zomato): Reported a ₹162 crore EBITDA loss in Q1 FY26 but is nearing overall profitability.
- Swiggy Instamart: Faced deeper losses of ₹1,197 crore in Q1 FY26, largely due to its high-cost IPO marketing and expansion.
- New Entrants: The entry of Flipkart Minutes and Amazon’s 15-minute delivery trial in Bengaluru has kept the cost of customer acquisition (keywords on Google/Meta) at record highs.
“We are now within touching distance of EBITDA breakeven. Our newly launched dark stores are tracking toward profitability faster than any previous cycle.” — Aadit Palicha, Co-founder & CEO.
