Motilal Oswal reports that investors pay ₹12.20 for each ₹1 of Zomato's revenue but only ₹6 for Swiggy's, a sign of confidence in how Zomato is run. For restaurants, Zomato looks the steadier platform to plan around, while Swiggy, whose quick-commerce arm lost ₹799 crore in Q3 FY25, is likelier to keep launching new formats.
An investor's view of the two apps
Motilal Oswal's analysis goes over many of the same FY25 numbers as other studies comparing the two companies. What sets it apart is that it looks through investors' eyes: not only which company has the stronger numbers now, but why the market puts such different values on them, and what the gap suggests about where each is heading in the near term.
The valuation gap
According to Motilal Oswal, Zomato's shares trade at 12.2 times its sales (its price-to-sales ratio), against 6 times for Swiggy. Put simply, an investor pays ₹12.20 for each ₹1 of revenue Zomato brings in, and ₹6 for each ₹1 Swiggy brings in.
The analysis treats this as confidence in how Zomato is being run and in its route to lasting profitability, not just a reaction to one year's results. Swiggy's lower multiple is not necessarily a vote against the company. It can just as easily reflect investors holding back to see how its heavier spending on quick commerce turns out.
A ₹799 crore quick-commerce loss in one quarter
The analysis also gives a quarterly figure. Swiggy's quick-commerce segment lost ₹799 crore in Q3 FY25 alone, as the company kept investing heavily in Instamart and in newer services, one of them called Maxxsaver.
According to Motilal Oswal, Swiggy's management presents these losses as a deliberate choice to build scale for the long run, not as proof that the model is failing. That distinction matters when you read Swiggy's quarterly and annual numbers: the company appears to be spending cash on purpose to win market position, rather than losing money by accident.
Where each company is strongest
Motilal Oswal credits Zomato's lead in quick commerce to better unit economics at Blinkit, meaning it does better on what each order earns against what it costs. Blinkit's EBITDA losses fell 92% year on year. It sees that as the mark of a more efficient operating model, not simply a bigger one.
Swiggy's reply, according to the analysis, is an ambitious plan to get more orders out of each dark store, along with Bolt's 10-minute delivery as a way of keeping customers loyal on something other than price.
No single winner
The analysis stops short of calling one platform better across the board. Its verdict depends on what matters to you:
- Reliability, profitability and a large restaurant network point towards Zomato.
- An appetite for very fast delivery and Swiggy's wider spread of services point towards Swiggy.
What this means for your restaurant
- On current finances, Zomato looks like the steadier platform to build a delivery plan around.
- Expect Swiggy to keep introducing new formats such as Bolt, which may create fresh openings for you, although its finances in the near term are less certain.
- When you see headlines about Swiggy's losses, remember that its management describes them as a deliberate bet on scale rather than a sign the business is failing.
Sources
- Swiggy vs Zomato: The Battle for India's Food & Grocery Crown — Motilal Oswal
This article summarises the reporting and guides listed above; the figures belong to those sources and are attributed in the text. Check anything that affects your business against your own platform agreements, payout statements and advisers.