Quick Commerce CM Breakeven by June 2026
Management reiterated guidance for contribution margin breakeven by Q4 FY26, requiring ~250bps additional improvement from current -2.6% level.
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margins
Instamart Medium-Term CM Target of 4%
Long-term contribution margin aspiration of 4% with corresponding 7% EBITDA margin for the Instamart business.
Quick Commerce Ad Revenue 6-7% of GOV
In steady state, quick commerce advertising revenue expected to reach 6-7% of GOV, up from current levels, driven by brand adoption.
QIP Capital Raise for Growth & Strategic Reserve
Planned Qualified Institutions Placement at holding company level to fund growth investments, innovation capital, and strategic reserves.
Food Delivery Growth: 18-20% YoY
Management maintained its annual GOV growth guidance of 18-20% for Food Delivery. While Q3 exceeded the range at 21%, management wants to observe another quarter before upgrading guidance.
Instamart CM0 by Q1 FY27
Targeting contribution margin break-even by Q1 FY27 (roughly 2 quarters away). Confidence backed by structural levers including scale monetization, ad revenue, and operational efficiency. Reversal of failed promotional experiments (no-fee 299 campaign) will provide additional upside.
250bps CM Expansion Over Next Two Quarters
Guidance to add 250 basis points of contribution margin over the next two quarters remains intact. Previous 100bps improvement in Q2 was largely reinvested into the no-fee experiment. Q3 showed another 100bps structural improvement.
Peak Investment Phase for Quick Commerce
Management explicitly stated this quarter represents the peak of investment/burn for Instamart. Absolute losses should begin declining from here as CM improves toward zero and marketing spend is rationalized toward quality growth only.
Quick Commerce Contribution Margin Break-Even in Q1 FY27
Management confirmed achieving contribution margin break-even for the full quarter in Q1 FY27, with March exit at +110 bps.
Quick Commerce Medium-Term GOV Target of ₹1 Lakh Crore
Target to reach ₹1 lakh crore GOV in 3.5-5 years, implying 35-50% CAGR, driven by store densification and geographic expansion.
Food Delivery Steady-State Margin of 5%
Food delivery business expected to maintain steady-state EBITDA margin of 5% with medium-term growth of 18-20%.
Capex to Moderate Significantly
Capex expected to decline as warehousing investments are largely complete; Q4 capex was ~₹195 Cr.