Zepto’s IPO Filing and Financial Performance Overview

Quick commerce leader Zepto has submitted its updated draft red herring prospectus (UDRHP) to the SEBI aiming to generate Rs 8,010 crore through a new issue in its IPO. Despite doubling its revenue in FY26, the company’s losses escalated by 26% to Rs 5,905 crore, making it one of the largest loss-making entities within India’s startup landscape.

Revenue Growth Metrics

Zepto’s revenue from operations experienced a remarkable increase, doubling to Rs 22,624 crore in FY26 from Rs 11,110 crore in FY25, as shown in its consolidated financial statements derived from the updated draft red herring prospectus (UDRHP). The firm delivers over 46,600 products across various categories within a brisk 10-minute timeframe via its extensive network of dark stores. By March 2026, Zepto had established over 1,139 dark stores nationwide and managed upwards of 1.75 million orders each day.

Main Revenue Streams

The primary source of revenue for Zepto continues to be product sales, which accounted for approximately 78% of its operational revenue. This segment witnessed a 92% growth, reaching Rs 17,588 crore in FY26 compared to Rs 9,145 crore in FY25. The company also exhibited significant growth in other income sources, with revenues from warehousing, packaging, and last-mile services more than doubling to Rs 2,780 crore throughout the year. Moreover, advertising income jumped 2.5 times to Rs 1,636 crore, while platform services contributed Rs 564 crore in FY26. Non-operating income, including interest from fixed deposits, amounted to Rs 505 crore, bringing Zepto’s total income to Rs 23,128 crore for FY26.

Expenditure Breakdown

For the firm led by Aadit Palicha, product procurement represented the largest expense, making up 63% of total outlays. This expense soared by 90% to Rs 18,199 crore in FY26, up from Rs 9,542 crore in the prior fiscal year. Employee benefit costs also increased by 44% to Rs 1,785 crore in FY26, which encompassed Rs 557 crore in ESOP-related charges, a non-cash cost. Among the employee expenses, Rs 192 crore was specifically tied to personnel working in warehouses and dark stores.

Delivery and Operational Costs

Delivery and handling expenses rose more than 90% to reach Rs 3,046 crore over the year. Costs associated with Zepto’s network of 1,139 dark stores were recorded at Rs 2,150 crore, while advertising and promotional outlays escalated to Rs 1,389 crore as the company aggressively invested in growth and customer acquisition. Software-related expenditures experienced a 31% year-on-year increase, reaching Rs 300 crore. Together with additional overheads such as store and franchise expenses, power and fuel costs, and legal and professional fees, Zepto’s total expenditure surged by 79% to Rs 29,027 crore in FY26.

Financial Summary

In spite of doubling its revenue in FY26, Zepto’s losses increased to Rs 5,905 crore from Rs 4,700 crore seen in FY25 due to rising warehousing, delivery, and other operating costs supporting its rapid expansion. The company reported a return on capital employed (ROCE) and an EBITDA margin of negative 74.8% and 23.18%, respectively, in FY26. Nonetheless, Zepto managed to enhance its cost efficiency, lowering its expense-to-earning ratio to Rs 1.28 from the previous year.

Asset Overview

By the conclusion of FY26, Zepto’s current assets were assessed at Rs 9,638 crore, inclusive of cash and bank reserves amounting to Rs 973 crore. In comparison, Zepto’s main competitors, Blinkit and Swiggy Instamart, also displayed strong growth in FY26. Blinkit achieved revenue of Rs 37,779 crore along with a positive EBITDA of Rs 430 crore during the year, while Swiggy Instamart reported revenue of Rs 3,859 crore but faced an EBITDA loss of Rs 3,063 crore.