Eating-Out GOV Crosses ₹4,200 Cr; Growth Moderates After FY25 Surge
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The Big Picture
Swiggy and Zomato's combined out-of-home GOV crossed ₹4,225 crore in Q3 FY26, up 27% YoY. After an exceptional FY25 with multiple quarters of triple-digit YoY expansion — peaking at 146% YoY in Q3 FY25 — growth is now stabilising at healthier, sustainable levels.
Why It Matters
YoY growth has normalised from 146% in Q3 FY25 to 27% in Q3 FY26. After a brief contraction in Q4 FY25 (-8% QoQ), sequential growth has recovered to 19% QoQ in Q3 FY26. This marks a transition from hyper-growth to sustained expansion.
What It Means
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. The category fundamentals remain robust despite moderation.
Seasonal & Macro Moderation
The flattening sequential trend reflects spending fatigue post-festive, coupled with budget reallocation toward home delivery and quick commerce in metros. Q4 FY25 saw a -7.9% QoQ contraction.
The divergence between YoY and sequential trends highlights two key dynamics: strong underlying demand driven by frequency gains and tier-2 adoption, and seasonal moderation as consumers reallocate budgets post-festive. This phase marks a transition from hyper-growth to sustained expansion.
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