India’s food delivery sector is expected to see growth above 20% in the next two to four quarters, according to Motilal Oswal.

Growth had slowed recently, with gross order value for Zomato and Swiggy rising 18% in FY25, down from 19-20% in FY24.

Motilal Oswal raised its growth estimates for both firms to 21% to 23% for FY26-FY27, citing the festive season and GST rate cuts as key factors.

Both Zomato and Swiggy increased platform fees ahead of the holidays, with Swiggy’s fee rising to rupee 15 (US$0.17) from 14 rupee (US$0.16), and Zomato’s to 12 rupee (US$0.14) from 10 rupee (US$0.11).

Zomato and Swiggy now face an added GST cost of 180 rupee (US$20.4 million) to 200 crore rupee (US$22.7 million) each per year due to new tax rules.

🔗 Source: The Economic Times

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