Has Quick Commerce Growth Hit a Speed Bump? Inside Blinkit, Instamart & Zepto’s Q1 FY26 Performance

India’s quick-commerce sector is now entering a more tempered phase as companies shift their focus from aggressive expansion to profitability and sustainability.

A recent ICICI Securities report indicated that the overall growth of the quick-commerce sector was under 20% in Q1.

At the same time, Zomato‑owned Blinkit and Swiggy’s Instamart reportedly outpaced the overall market, delivering sequential gross‑order‑value growth of approximately 25% and 22%, respectively.

This means that Blinkit and Instamart have gained market share, while Zepto likely lost some during the quarter.

Q1 FY26 Performance: Winners and Losers

Blinkit and Instamart’s large networks of micro‑fulfillment centers and deep pockets for subsidies have allowed them to consolidate market share even as the overall channel expanded at under 20%.

On the other hand, Zepto’s growth plateaued due to a deliberate reduction in cash burn and new-city launches to improve unit economics, resulting in slower GOV growth and losing market share to the market leaders.

Multiple reports have mentioned that the rapid roll‑outs across India’s major metros have left limited white space for new dark‑store openings. With Blinkit and Instamart each operating well over a thousand mini‑warehouses in Tier 1 cities, the marginal gains from further densification are shrinking.

At the same time, higher real‑estate, staffing, and logistics costs have reportedly pushed per‑order expenses upwards. Generous discounts needed to keep order volumes growing are now cutting sharply into margins, forcing all players to balance growth ambitions against the burden of widening losses.

Rising Competition

Beyond quick commerce majors, legacy grocery platforms and e‑commerce giants are doubling down on rapid delivery. Flipkart’s “Minutes” service and BigBasket’s quick‑commerce arm have either capitalised on existing store networks or repurposed dark stores, intensifying the competition in the sector.

This broadened competitive set is not only driving further discounting wars but also accelerating innovation in assortment, delivery speed guarantees, and subscription‑based loyalty programs.

With acquisition costs on the rise, retention has emerged as a critical lever. Swiggy’s “Instamart One” and Blinkit’s loyalty tiers aim to build stickiness, while in‑app advertising and private‑label FMCG lines offer higher‑margin revenue streams.

Meanwhile, B2B fulfillment partnerships with neighbourhood kiranas and cloud‑kitchen integrations represent additional avenues to monetise the existing dark‑store infrastructure. Yet converting first‑time users into profitable repeat customers remains a key hurdle, especially as discount fatigue sets in.

Where’s Q-Comm Heading?

The next battleground lies beyond the metros. Tier 2 and Tier 3 cities, where quick‑commerce penetration remains in the single digits present significant addressable demand if players can navigate higher per‑order costs.

Simultaneously, evolving zoning laws for dark stores, local licensing requirements for food and grocery storage, and amended e‑commerce FDI norms will require closer engagement with regulators.

To secure long‑term viability, operators must not only expand geographically but also unlock alternative monetisation levers, be it through B2B services, advertisement platforms, or proprietary product lines.