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India's Top 12 Firms See Revenue Surge
17 Feb
Summary
- Nine of 12 top new-age firms achieved over 25% revenue growth.
- Eternal's revenue tripled due to Blinkit's operational model change.
- Profitability improved for most companies, with some swinging to profit.
Nine of India's 12 leading new-age companies by market capitalization achieved revenue growth of 25% or more during the October-December period. This expansion was propelled by increased market access and a growing consumer demand for digital services, although profitability and stock performance showed divergence across these firms.
Food delivery giant Eternal, encompassing Zomato and Blinkit, reported a threefold revenue increase year-over-year. This significant growth stemmed primarily from Blinkit's shift to an inventory-led operating model. On a comparable basis, Eternal's revenue grew by 65%.
Several other companies also demonstrated robust revenue expansion. Swiggy's revenue grew by 54%, and Ather Energy saw a 50% increase. Lenskart, PB Fintech, PhysicsWallah, and Meesho each posted revenue growth between 31% and 38%. Nykaa achieved a 27% expansion, while Groww reported a 25% rise. Payment firm Paytm and logistics company Delhivery also saw strong revenue growth around 20%, with Go Digit experiencing single-digit expansion.
Many of these companies also reported enhancements in their profit margins. Nykaa's net profit more than doubled, and Eternal recorded a 73% profit increase. Delhivery's profits grew by 56%, and Paytm successfully moved to profitability from a loss in the prior year's quarter.
Blinkit achieved break-even at an operating level, contributing to Eternal's improved profitability. However, Eternal's management indicated a willingness to sacrifice near-term profits for market leadership and long-term growth. Rival Swiggy, despite facing significant cash burn in the competitive quick commerce sector, experienced slower revenue growth and a wider loss in the third quarter.
Fintech companies experienced healthy business growth, capitalizing on the consumption boom during the festive season. Paytm, Go Digit General Insurance, and PB Fintech all reported net profits, supported by strong business momentum and fiscal discipline, according to brokerage analyses.
