Table of Contents
The combined out-of-home Gross Order Value (GOV) for Swiggy and Zomato sustained its strong growth trajectory through FY25, crossing ₹3,588 crore in Q1 FY26, up 38.9% YoY. This follows an exceptional FY25 performance, where the category saw multiple quarters of triple-digit YoY expansion - peaking at 146% YoY in Q3 FY25.
However, after this high base, sequential growth has moderated from 28% in Q3 FY25 to just 4.7% in Q1 FY26, signalling the beginning of a normalisation phase. The post-festive quarter (Q4 FY25) even saw a brief contraction of –7.9% QoQ, largely reflecting seasonal softness and a high comparative base.
What It Means
The divergence between YoY and sequential trends highlights two key dynamics:
- Strong underlying demand — Eating-out continues to expand YoY at a healthy clip, driven by frequency gains, recovery in corporate and travel-related dining, and tier-2 city adoption.
- Seasonal and macro moderation — The flattening sequential trend reflects spending fatigue post-festive, coupled with budget reallocation toward home delivery and quick commerce in metros.
This phase marks a transition from hyper-growth to sustained expansion, with GOV likely to stabilise at mid-teen quarterly growth on a normalised base.
