India’s retail market is growing at a strong pace. It is expected to reach around Rs 210–215 trillion by 2035, up from about Rs 90–95 trillion in 2025. This growth is supported by steady consumption and GDP expansion. The estimates come from a joint report by Boston Consulting Group and the Retailers Association of India.
As this market expands, the way people shop is also changing. Consumers are comparing prices, expecting faster delivery, and looking for better experiences. This shift is pushing companies to invest more in technology, logistics, and digital platforms. As a result, businesses that enable retail, rather than just sell products, are seeing rising relevance and growth.
This makes retail tech an interesting space to watch. Growth is no longer coming only from opening more stores. It is coming from better supply chains, faster deliveries, and smarter platforms. Companies that can improve speed, cost, and customer experience are likely to benefit the most as consumption rises.
These companies have been selected because they represent different parts of the retail tech stack—discovery, demand, platform, and logistics—without overlap. This keeps the focus on pure enablers of consumption, not traditional retailers or diversified businesses.
On fundamentals, one is strong and cash-generative. One is improving with scale. One is stable but slowing. And one is still scaling with profits yet to fully stabilise. This creates a balanced exposure to the theme.
#1 Eternal: The Quick Commerce Juggernaut
Incorporated in 2010, Eternal, earlier known as Zomato, is one of the leading online Food Service platforms in terms of the value of food sold. Its offerings include food delivery, dining-out services, Loyalty programs, and others.
Eternal reported strong growth in Q3 FY26. Revenue rose to Rs 16,315 crore, up 201.9% on a year-on-year (YoY) basis. Net profit stood at Rs 102 crore, up 102.9% YoY. Growth was driven largely by its quick commerce and food delivery businesses, reflecting the broader shift towards tech-led consumption in India. The company continues to benefit from rising demand for faster deliveries and wider assortment, even as competition remains intense.
Quick Commerce Breakeven: A Turning Point for Margins?
The quick commerce business reached breakeven during the quarter. Margins improved despite lower store throughput, supported by operating leverage and better cost control. Contribution margin expanded by around 90 basis points, while earnings before interest, tax, depreciation, and amortisation (EBITDA) margin improved by about 130 basis points sequentially. Growth remained strong, although management indicated that performance continues to be influenced by competitive intensity.
Expansion remains a key driver. The company added over 200 net stores during the quarter and continues to scale its network. Investments are rising, with higher capex per store driven by automation and increasing store size. The focus is on expanding assortment and improving customer experience rather than pushing short-term throughput.
At the same time, the company is investing in new segments. The going-out business saw higher spending due to the launch of a membership program. Losses in this segment are expected to reduce gradually, with a path towards breakeven over the next four to six quarters.
Management remains cautious on near-term margins due to fluctuating competition and pricing pressures. However, it continues to maintain confidence in long-term profitability, supported by operating leverage and scale benefits.
Overall, the company reflects the shift in India’s retail landscape. Growth is increasingly being driven by speed, convenience, and digital platforms. While near-term volatility may continue, the long-term opportunity remains intact as consumption moves towards tech-enabled ecosystems.
In the past year, share price of Eternal is up 13.5%.
Eternal 1 Year Share Price Chart
#2 FSN E-Commerce Ventures (Nykaa): The Vertical Specialist Defying Price Wars
FSN E-commerce Ventures (FSNEV) popularly known as “Nykaa” is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care, and fashion products, including owned brand products manufactured by it.
FSN E-Commerce Ventures, which operates the Nykaa platform, reported a strong Q3 FY26, reflecting the continued shift towards tech-led consumption in India. Revenue rose to Rs 2,873 crore, up 27% YoY. Net profit stood at Rs 68 crore, marking a sharp 156% increase. The growth came despite a one-time impact from the new labour code, indicating underlying strength.
The quarter highlighted improving scale and efficiency. Gross margin expanded to 45.2%. EBITDA margin improved to 8.0%. This was driven by better unit economics, higher contribution from owned brands, and improved monetisation through ads and services. The company has now delivered mid-20% growth for over 13 quarters, showing consistency in a competitive market.
Beauty vs. Fashion: Scaling the house of brands
The beauty segment remained the core driver. It continued to grow at a steady pace with improving margins. The fashion business also showed recovery. Growth accelerated and losses reduced during the quarter. This reflects better customer acquisition and improved platform health.
Expansion remained a key focus. The company added 11 stores in the quarter. Total store count reached 276 across 94 cities. New formats like Nykaa Perfumery were launched to drive premiumisation. The company is also scaling Nykaa Now, its quick delivery service, with delivery timelines of 30 minutes to 2 hours. This aligns with rising demand for faster fulfilment.
The House of Nykaa brands continued to scale rapidly. These brands are now contributing meaningfully to both growth and margins. The company is also expanding partnerships with global brands. It is managing end-to-end digital operations in India for partners like Nike and Kiehl’s, highlighting its full-stack capabilities.
Distribution reach also expanded. The B2B platform now serves over 4.8 lakh retailers across 1,100 cities. This wider network supports both brand growth and supply chain efficiency. It also strengthens the company’s position beyond a marketplace model.
The broader trend remains clear. Retail is moving towards digital, content, and faster delivery. Nykaa is investing across these areas, from influencer-led commerce to quick commerce.
Looking ahead, management remains cautiously optimistic. Growth visibility is supported by rising online penetration in beauty and fashion. However, competition and continued investments in customer acquisition may keep margins volatile in the near term.
In the past year, share price of FSN E-Commerce Ventures has rallied 31.7%.
FSN E-Commerce Ventures 1 Year Share Price Chart
#3 Delhivery: The Logistics backbone of India’s retail pivot
Delhivery provides a full range of Logistics services, including delivery of express parcels and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software. The company also offers value-added services such as e-commerce return services, payment collection and processing, installation & assembly services, and fraud detection.
Delhivery reported a strong Q3 FY26, reflecting the rising role of logistics in India’s retail tech ecosystem. Revenue from services rose to around Rs 2,798 crore, up 18% YoY. Net profit came in at about Rs 110 crore before integration costs and Rs 40 crore after, indicating a sharp improvement over last year. The quarter also saw record volumes across key businesses.
Growth was led by the express parcel segment. Volumes rose 43% YoY to 295 million shipments. Revenue from this segment grew 24% YoY. The part truckload business also performed well, with volumes up 23% and revenue up 25%. This reflects strong demand from e-commerce and improving share of wallet across clients.
Network optimisation: Driving the path to profitability
Margins improved across segments. Service EBITDA stood at Rs 421 crore. Adjusted EBITDA came in at Rs 147 crore, more than double the previous year. Profitability was supported by higher network utilisation and better cost control. Technology-led improvements also played a role in driving efficiency.
Expansion remains a key focus. The company is strengthening its network and increasing sales reach across new geographies. New products have also been launched. This includes intra-city delivery services in cities like Mumbai and Hyderabad, and an international shipping product for SMEs. These initiatives are aimed at capturing a larger share of the growing retail and e-commerce market.
The company is also investing in technology and automation. It is scaling its SaaS offerings and working on network optimisation tools. Trials with drone deliveries and new logistics solutions indicate a push towards innovation in supply chain operations.
Overall, the quarter highlights a shift towards profitable growth. Delhivery is focusing on improving margins rather than chasing volumes at any cost.
Going ahead, the outlook remains positive. Growth in e-commerce and organised retail continues to support demand for logistics services. However, maintaining margins amid competition and rising costs will remain key.
In the past year, share price of Delhivery has rallied 58%.
Delhivery 1 Year Share Price Chart
#4 IndiaMART InterMESH: The Logistics Backbone of India’s Retail Pivot
IndiaMART InterMesh, the first and largest B2B digital marketplace in the country, today stands out as a game-changer on the B2B landscape. It focuses on integrating the Small and Medium Businesses (SMEs) into the new paradigm with speed and ease, we are constantly pushing the frontiers of innovation to make the online marketplace more accessible, visible and engaging to them.
IndiaMART InterMESH reported steady growth in Q3 FY26, reflecting the ongoing shift of B2B commerce towards digital platforms. Consolidated revenue stood at Rs 402 crore, up 13% YoY. Net profit rose 3.9% YoY to Rs 188 crore, supported by strong operating margins and other income.
The core marketplace continues to see stable traction. Collections grew 17% YoY to Rs 426 crore, indicating improving monetisation. Deferred revenue increased 19% to Rs 1,775 crore, providing visibility for future revenue. However, growth in unique business inquiries slowed to 4% YoY, largely due to seasonal factors and lower advertising days during the quarter.
A key trend remains the focus on quality over scale. Paying suppliers declined slightly to about 2.21 lakh, following a price increase in the entry-level subscription tier. The company indicated that higher pricing impacted gross additions in the near term. However, premium customers continue to drive revenue. Gold and Platinum users now contribute over 75% of revenue, with stable retention and upsell trends.
The ARPU Play: Prioritizing Quality Over Quantity
The broader strategy remains centred on strengthening the platform rather than expanding into fulfilment. The company is positioning itself as a technology-led marketplace. It is investing in AI-led matchmaking, improving lead quality, and enhancing trust features. New initiatives include embedding payments, credit support, and AI-driven customer engagement tools without taking on logistics or inventory risks.
Adjacencies are also contributing to growth. Busy Infotech, the accounting software arm, reported revenue of Rs 32 crore with strong underlying growth. The company continues to scale its SaaS offerings across SMEs, adding new licenses and expanding its product ecosystem.
From an industry standpoint, the focus is shifting from traffic growth to conversion quality. Management highlighted that improving inquiry relevance and buyer intent is more critical than simply increasing volumes. Repeat usage remains high, and the platform is working to deepen engagement rather than chase aggressive user expansion.
Looking ahead, growth is expected to remain gradual. The company is prioritising better lead quality, pricing discipline, and ARPU expansion. Supplier additions may stay muted in the near term as the impact of price hikes plays out.
The outlook reflects a maturing B2B marketplace model. Growth will likely depend more on monetisation and platform efficiency than rapid user expansion.
In the past year, share price of IndiaMART InterMESH is down 4.7%.
IndiaMART InterMESH 1 Year Share Price Chart
The Retail Tech Valuation Gap
Let’s now turn to the valuations of the companies in focus, using the Enterprise Value to EBITDA multiple as a yardstick.
Valuations of Companies in focus
| Sr No | Company | EV/EBITDA Ratio | 3-Year Average EV/EBITDA | Industry Median | ROCE | ROE |
| 1 | Eternal (Zomato) | 100.9 | 148.3 | 21.9 | 2.7% | 1.7% |
| 2 | FSN E-Commerce Ventures (Nykaa) | 98.5 | 129.3 | 9.6% | 5.2% | |
| 3 | Delhivery | 33.4 | 40.6 | 9.9 | 2.5% | 1.5% |
| 4 | IndiaMART InterMESH | 14.5 | 30.5 | 13.6 | 34.2% | 26.9% |
The return ratios are not the same across these companies. One company is clearly ahead, with return on capital employed (ROCE) at 34.2% and return on earnings (ROE) at 26.9%. It is already making strong returns. Another is in the middle, with ROCE of 9.6% and ROE of 5.2%. The other two are still early. Their ROCE is around 2–3% and ROE is below 2%, so profits are still building.
Valuations also show this difference. Two companies are trading close to 100x EV/EBITDA. Their 3-year averages are 148.3x and 129.3x. This shows the market is expecting high growth. The logistics player is at 33.4x, which is lower but still above its industry median of 9.9x. The B2B platform is at 14.5x, almost in line with its industry median of 13.6x.
This is because each business is at a different stage. Some are still investing heavily. One is already earning well.
So this is not one type of story. Some are growth bets. One is already strong on returns. It will depend on how each company performs from here.
Conclusion
The overall trend is clear. More business is moving online. Speed and convenience are becoming important. These companies are part of that shift.
At the same time, they are not in the same place. One is already earning well. Others are still trying to reach that stage. This is visible in both returns and margins.
Valuations also follow this gap. Some are priced much higher because of future expectations. One is closer to what it is already delivering.
So it does not make sense to see them as one basket. Each will move on its own path. What they deliver from here will matter more than what the market is expecting today.
You can track how these progress by adding them to your watchlist.
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to deep dive into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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