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Food Delivery Margins to Expand as Platform Fees Rise
28 Apr
Summary
- Food delivery business Ebitda margin projected to reach 4.6% by end of Q1 FY26.
- Platform fee increases are expected to drive margin expansion in the food delivery sector.
- Blinkit's revenue comparison will be affected by the shift to a 1P model.
Projections indicate a positive outlook for the food delivery sector's profitability. Analysts anticipate a 30 basis points quarter-over-quarter expansion in contribution margin, alongside a 20 basis points rise in Ebitda margin to 4.6% by the close of Q1 FY26.
This improvement is expected to be partly fueled by an anticipated increase in platform fees toward the end of the current quarter. For the Blinkit business specifically, its contribution and Ebitda margin are forecasted to remain stable quarter-over-quarter.
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