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Quick commerce major Zepto doubled its FY26 revenue to Rs 22,624 crore even as losses widened to Rs 5,905 crore, according to its updated draft red herring prospectus (UDRHP) filed with the Securities and Exchange Board of India (SEBI). The Aadit Palicha-led company disclosed the numbers as it prepares for a planned Rs 8,010 crore fresh-issue IPO expected in July 2026.
Zepto FY26 Revenue and Financial Performance
Zepto‘s revenue from operations rose nearly 104% to Rs 22,624 crore in FY26 from Rs 11,110 crore in FY25. Including other income of Rs 505 crore from sources such as interest on fixed deposits, total income stood at Rs 23,128 crore for the year.
Sale of products remained the largest stream, contributing about 78% of operating revenue. This segment grew 92% to Rs 17,588 crore. Revenue from warehousing, packaging and last-mile services more than doubled to Rs 2,780 crore, advertising revenue rose 2.5X to Rs 1,636 crore, and platform services added Rs 564 crore.
Total expenses climbed 79% to Rs 29,027 crore. Procurement of products, the biggest cost component at 63% of spending, rose 90% to Rs 18,199 crore. Delivery and handling expenses surged more than 90% to Rs 3,046 crore, while employee benefit expenses increased 44% to Rs 1,785 crore, including Rs 557 crore in non-cash ESOP charges. Software-related expenses grew 31% to Rs 300 crore.
Despite the revenue jump, Zepto losses widened about 26% to Rs 5,905 crore from Rs 4,700 crore in FY25. The adjusted EBITDA loss stood at Rs 5,042 crore, though the adjusted EBITDA loss per order improved sharply to Rs 78.75 from Rs 136.15, pointing to better unit economics. ROCE and EBITDA margin were negative 74.8% and 23.18% respectively. By year-end, current assets stood at Rs 9,638 crore, including cash and bank balances of Rs 973 crore.
Zepto Dark Stores and Quick Commerce Operations in FY26
Zepto operated 1,139 dark stores at the end of FY26, up from 1,029 a year earlier, delivering more than 46,600 products within 10 minutes. Orders per store per day rose to 2,140 from 1,425.
The platform processed around 64 crore orders during the year, averaging over 17 lakh orders a day. Its annual transacting user base grew 25% to 4.79 crore users as of March 2026.
For the January-March quarter, revenue surged 75.26% to Rs 7,498 crore, while net loss narrowed to Rs 1,539 crore from Rs 1,832 crore a year earlier and was down 9% sequentially.
Zepto IPO: Fresh Issue, Offer for Sale and Fund Use
Zepto’s IPO comprises a fresh issue of shares worth Rs 8,010 crore and an offer for sale (OFS) of 11.35 crore shares by existing investors, taking the estimated total size to around Rs 11,000 crore. The company is also weighing a Rs 1,602 crore pre-IPO placement, which would be deducted from the fresh-issue size if completed. The listing could value Zepto at around USD 10 billion, up from USD 7 billion in its last funding round.
Co-founders Aadit Palicha and Kaivalya Vohra, along with promoter entities, are not selling any shares in the OFS. The promoter group holds 18.47% of the company. Selling shareholders are largely early institutional backers, including Nexus Venture Partners, Contrary Capital, Razor Ventures and Kaiser Foundation entities.
Proceeds will fund dark store expansion, rentals for existing stores, technology and cloud infrastructure, and marketing through subsidiary Zepto Marketplace. A portion is earmarked for acquisitions and general corporate purposes.
Enforcement Directorate Summons and IPO Risk Factors
In its updated DRHP, Zepto disclosed that founders Aadit Palicha and Kaivalya Vohra received Enforcement Directorate (ED) summons in April 2026 under FEMA provisions. The agency sought details on foreign investments, FY21 audited statements, shareholding records, loans and income-tax filings.
Both founders appeared before the agency and submitted the requested information, and the company said it had received no further communication as of the filing date. Zepto flagged its history of operating losses and regulatory scrutiny among key risk factors.
What Zepto’s FY26 Numbers Mean for the Quick Commerce Market
Zepto enters the public market amid intense quick commerce competition in India. Rivals Blinkit and Swiggy Instamart also reported strong FY26 growth, with the sector expanding beyond groceries into electronics, beauty, fashion and home essentials.
The central question for investors is whether Zepto can convert rapid topline growth into sustainable profit. An improving EBITDA loss per order and a narrowing March-quarter loss suggest progress, but widening annual losses and heavy expansion spending remain concerns. A successful listing would mark one of India’s most closely watched new-age technology debuts, testing investor appetite for a standalone quick commerce player still operating at a loss.
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