Q-comm profitability may come a quarter late

INDIA'S LISTED QUICK commerce players — Zomato's Blinkit and Swiggy Instamart — are expected to see solid growth in order volumes and store expansions in the fourth quarter of FY25, but their profitability timelines may stretch further, analysts at JP Morgan have said.

- FE BUREAU

The brokerage has slightly revised estimates, pushing out the Ebitda break-even timeline to Q3FY26 from Q2FY26, as contraction in contribution margin may offset gains from increasing orders.

"A combination of falling network age and rising cities served from distant warehouses should be counterbalanced by moderating subsidies and rising availability and basket sizes. This should result in a one-quarter push out in QC profitability for both platforms," analysts Ankur Rudra and Bhavik Mehta said in the note.