Considering the continuously growing demand in the e-commerce sector and the strengthening market share of some companies in the quick commerce segment, brokerage houses are anticipating a surge in the shares of these companies in the coming time.
With the pace of Digital India, good times seem to be returning for the country's e-commerce and online delivery companies. According to a recent report by ICICI Securities, the performance of digital companies improved in the first quarter of fiscal year 2025-26, i.e., the April-June quarter. Major players like Zomato, Swiggy, Delhivery, and Nykaa have shown good growth.
Impact visible from discounts and expense control
The report indicates that companies have reduced heavy discounts in this quarter. Earlier, discounts were offered in large amounts to attract customers; now, companies are getting orders even without many offers. Simultaneously, a reduction has been observed in advertising expenditure and the pace of opening new stores. This has led to cost reduction for companies and improved operating margins.
Blinkit and Instamart increased dominance
The growth of quick commerce companies like Blinkit and Instamart was very fast this quarter. Blinkit's Gross Order Value (GOV) increased by 25.6 percent and Instamart's GOV increased by 22.6 percent. This means that these two companies have not only strengthened their position in the market but have also moved ahead of other competitors.
However, these companies are still incurring losses. Blinkit incurred a loss of around ₹1500 crore and Instamart a loss of ₹9100 crore, but this loss was less compared to the previous quarter. There was an improvement of 0.7 percent in Blinkit's EBITDA and 2.2 percent in Instamart's EBITDA.
Zomato's business is gaining momentum again
Zomato not only showed growth in food delivery this quarter, but its other business, Hyperpure, also saw a rapid increase in revenue. Food delivery GOV saw a quarterly growth of 10.8 percent, while it was over 17 percent on an annual basis. Hyperpure's revenue recorded an annual increase of 64 percent.
The company's adjusted operating profit was ₹201 crore and net profit reached ₹27.7 crore, which is much better than the company's previous performance.
Swiggy also showed strength, Instamart became a challenge
Swiggy has also performed well in Q1FY26. Food delivery GOV increased by 9.8 percent and the company earned an operating profit of ₹220 crore from this segment. This is the first time that the company has made a good profit from this part of its business.
However, the company is still suffering heavy losses due to Instamart. According to the ICICI report, Instamart incurred a loss of about ₹9100 crore. Despite this, the company's margins have improved, and the pace of losses has slowed down somewhat.
Nazara benefited from acquisitions, Matrimony weakened
Nazara Technologies recorded a growth of 107 percent this quarter, which is due to recent acquisitions. However, the company's profit decreased by 9 percent compared to the previous quarter and by 36 percent on an annual basis. On the other hand, both the revenue and profit of Matrimony.com declined. The company's profit decreased by about 49 percent, which is a matter of concern.
Delhivery benefited the most
Delhivery benefited the most this quarter due to the increase in e-commerce demand. The company's express parcel volume recorded a growth of 15.8 percent, while total revenue increased by 8.8 percent. The company made a big jump of 96 percent in EBITDA on an annual basis. Delhivery made a net profit of ₹59.3 crore this quarter, whereas it was incurring losses in the same quarter last year.
Balanced performance of Info Edge and IndiaMART
Info Edge – which operates portals like Naukri.com – also showed stable performance this quarter. The company's revenue increased by 8.7 percent and profit by 19 percent. IndiaMART also recorded an annual growth of 11 percent, although the company's profit decreased slightly because it increased its marketing expenditure.
Growth in sales of Nykaa's beauty products
Nykaa's beauty product segment still remains its b point. Sales of beauty products increased by 24 percent annually this quarter, while the fashion segment recorded a growth of 16 percent. The company's EBITDA increased by 47 percent to reach ₹140 crore, and profit increased to ₹30 crore.
Who was at the forefront in the eyes of the brokerage?
ICICI Securities has included Eternal and Delhivery in its list of preferred digital companies. Also, their outlook towards Swiggy is said to be positive. The report indicates that these companies have the potential to increase their market share, and their losses are gradually decreasing.
Although competition in the e-commerce and digital delivery sectors has increased, companies that have focused on cost control, service quality, and technological expansion are now gradually returning to the path of profit. This report also makes it clear that quick commerce is no longer just an experiment but is becoming a mainstream part.
