Swiggy, Zomato dine-out paths diverge amid revival

Swiggy chases profitability, while Zomato focuses on building scale to cash in on momentum

- Sakshi Sadashiv

The dine-out economy is regaining momentum, with food-tech giants Swiggy and Eternal (Zomato) taking divergent paths to capitalize on the trend: Swiggy is chasing profitability, Eternal is building scale through a broader business mix.

Swiggy's latest numbers show its dine-out arm has turned profitable for the first time. The company reported a gross order value (GOV) of ₹1,118 crore for its dine-out arm in the second quarter of fiscal 2026, a 52% year-on-year (yo-y) increase from 1734 crore in the same quarter last year. Its adjusted Ebitda margin of +0.5% marks a small but symbolic operating profit of ₹6 crore, turning the corner after several loss-making quarters.

Eternal (Zomato), meanwhile, reports a net order value (NOV) for its 'District' business, which includes dining, events and retail. The vertical grew around 32% yo-y, but remains in the red with an Ebitda margin of -3.1% and a quarterly loss of ₹3 crore. Eternal's broader revenue base—₹89 crore in the second quarter of fiscal 2026 compared to Swiggy's ₹88 crore—reflects a wider business mix, but also heavier operational intensity.