Zepto IPO: Jefferies Flags Profitability Challenges Despite Strong Growth
📢 ZEPTО IPO NEWS: Jefferies Highlights Profitability Gap Ahead of Listing 🚀
As Zepto prepares for its massive ₹8,010 crore (~$1 Billion) IPO, global brokerage house Jefferies has released a detailed analysis comparing the quick-commerce pure-play with its listed peers, Blinkit (Eternal) and Swiggy Instamart.
While Zepto has shown explosive growth, Jefferies points out a few structural and operational divergences that investors need to watch out for.
📊 Key Takeaways & Comparisons (FY26 / Q4 FY26)
Profitability Divergence: Blinkit has emerged as the only player to turn Adjusted EBITDA positive (reporting ₹37 crore profit in Q4 FY26). In contrast, Zepto remains deep in the red with an Adjusted EBITDA loss of ₹5,041 crore for FY26 (losing approx. ₹78.75 per order).
Average Order Value (AOV): Zepto operates on a discount-heavy, value-first strategy (similar to DMart's EDLP model). This keeps its net average order value low at ₹360, compared to ₹500–₹525*l for Blinkit and Instamart.
Scale & Efficiency: Zepto has successfully established itself as a clear No. 2 in market share (~35% of top-three order volumes). Impressively, it generated 210 million orders in Q4 FY26 using just 1,139 dark stores—nearly double the orders of Swiggy Instamart, which operates a similar store count (1,143). Blinkit still dominates with 2,243 stores and 273.9 million orders.
Reporting Differences: Jefferies flags that Zepto’s disclosures use metrics like Net Receivables Value (NRV) and a wholesale-led revenue structure, making a direct comparison with Blinkit's take-rate framework slightly complicated for retail investors.
💡 The Investor's Takeaway
Zepto's rapid scaling and high throughput per store are highly encouraging, showing the core model functions well at a transaction level. However, its aggressive expansion means it is still heavily burning cash compared to Blinkit's self-sustaining metrics.
The upcoming IPO essentially asks public investors to trust that future profitability will quickly follow its current blistering scale.