Zepto’s cost of fulfilling each order fell by nearly a third in FY26 as higher throughput across its dark-store network improved operating efficiency, but the quick-commerce firm remains some distance away from profitability, according to disclosures in its IPO filing.
The company’s all-in cost per order, which includes supply-chain, marketing, technology and corporate costs, declined to Rs 150.71 in FY26 from Rs 185.11 a year earlier and further to Rs 127.79 in the quarter ended March 2026. The improvement came as order volumes per dark store increased and customer acquisition costs fell sharply.
Order volume per dark store per day rose from 1,565 in FY25 to 1,677 in FY26 and further to 2,140 in the March 2026 quarter, even as the company’s dark-store count increased only modestly from 1,029 to 1,139 during the year.
The disclosures suggest Zepto is relying on higher utilisation of its existing network to improve economics rather than rapid geographic expansion.
Sharpest improvement came in digital marketing costs
The sharpest improvement came in digital marketing costs. Marketing cost per order fell from Rs 33.75 in FY25 to Rs 4.31 in FY26 and further to Rs 1.01 in the March quarter, reflecting stronger user retention and lower customer acquisition spending. Fixed costs per order also declined from Rs 80.19 to Rs 52.34 over the same period as higher order volumes improved operating leverage.
By contrast, supply-chain variable costs, which include picking, packing and delivery expenses, remained relatively stable, easing only from Rs 63.03 per order in the June 2023 quarter to Rs 61.24 in the March 2026 quarter.
Yet the gains have not translated into profits. Adjusted Ebitda per order remained negative at Rs 59.40 in the March 2026 quarter, while free cash flow per order stood at negative Rs 42.01. Although both metrics improved significantly from June 2023 levels, they remain firmly in the red.
Losses continued to widen as the business scaled up.
In absolute terms, losses continued to widen as the business scaled up. Zepto reported a restated loss of Rs 5,905 crore in FY26, compared with Rs 4,700 crore in FY25, making it the most loss-making among the three scaled quick-commerce players. By comparison, Blinkit reported losses of Rs 929 crore, while Instamart posted losses of Rs 3,511 crore.
The company also trails its rivals in cash reserves. As of March 2026, Zepto’s cash and investments stood at Rs 5,680 crore, compared with Rs 17,972 crore for Blinkit and Rs 15,053 crore for Instamart.
The proposed IPO is expected to strengthen that position. Zepto plans to raise up to Rs 8,010 crore through a fresh issue of shares, potentially taking its cash balance to nearly Rs 13,700 crore before expenses.
Notably, the largest identified use of proceeds is not expansion but supporting existing operations. The company has earmarked Rs 1,735 crore towards lease rentals for existing dark stores, compared with Rs 1,629 crore for setting up new stores. Another Rs 1,325 crore has been allocated for technology and cloud infrastructure, while Rs 520 crore will be used for marketing.
While the filing points to improving unit economics, the company’s path to profitability remains dependent on sustaining higher order density and extracting greater efficiency from its existing network. The key question for investors is whether those gains can outpace the cash demands of a business that continues to burn billions of rupees annually in pursuit of growth.