Food delivery giants ride the health wave to fatten margins

Eternal Ltd, earlier known as Zomato, on Monday rolled out ‘Healthy Mode’, a new pilot feature that rates meals on their nutritional value. The pilot feature is currently available only in Gurugram and will be expanded to other cities in the coming months. The launch comes at a time when growth in the food delivery segment has begun to slow down.

According to a Goldman Sachs report on 1 September, Zomato’s food delivery net order value (NOV) growth is expected to moderate at around 18% in FY26, well below the triple-digit surge seen in Blinkit. This reflects a maturing market where user additions have slowed, making higher average order values a key lever for growth.

Analysts agree the move is timely. “The newer generation is moving towards healthy foods, so I think this is a great move. But still, whether premiumisation will really happen remains to be seen," said Sandeep Abhange, research analyst, Consumer and Midcaps at LKP Securities.

To be sure, Zomato is not alone. On the heels of Zomato’s launch, Swiggy announced on Wednesday that it had expanded its High Protein category to over 160 cities, bringing the total to more than 1 million dishes across 1.4 lakh restaurants.

The Bengaluru-based platform also introduced three new sub-categories—Low Cal, No Fry, and Gluten Free—along with Protein Minis, a range of bite-sized, protein-packed meals with 5-15 grams of protein per serving.

The move deepens Swiggy’s health focus, after an initial rollout in July drew 2.4 million customers in the category last month alone, Swiggy said in a press statement.

But restaurants say the new push comes with trade-offs.

Restaurant trade-offs

"Yes, Healthy Mode helps us get discovered, but the flip side is margins. If customers are already paying 20-25% extra for healthy dishes, and on top of that, platforms charge the same high commission, it eats into whatever benefit we might see. For us, it’s not a straight win," said the owner of a Gurugram health café.

Another bistro founder was more circumspect. "The idea sounds good, but healthy doesn’t always mean fast-moving. A grilled quinoa salad may get attention, but biryanis and burgers still dominate. Unless platforms actively nudge people at checkout, Healthy Mode might remain a niche tab, not a driver of volumes."

A Gurugram-based fusion chef flagged another risk. “Customers like trying new things, but if the price feels too steep compared to regular dishes, they quickly shift back. For restaurants, the risk is preparing high-cost inventory that doesn’t sell beyond a trial phase."

Yet, this move reflects a broader, growing trend among Indians of consuming healthy eating options. According to a recent report by Worldpanel by Numerator, it revealed that Indian consumers are willing to pay 22% more for “healthy" variants of food products, with even lower socio-economic groups (SEC D/E) paying 17% more. Categories such as tea and bottled soft drinks command the highest premium.

Queries sent to Zomato seeking comments did not elicit a response.

But the economics of healthy food are challenging. “Healthy food is at least 1.5 to 2 times more expensive than normal food," LKP Securities’ Abhange said. “It will take time for customers to get used to it. The success will also depend on how well these platforms collaborate with new restaurants and healthy outlets coming up across metro cities."

Growth pressure

For Zomato and Swiggy, the underlying objective remains the same—boosting gross order value (GOV). “Mainly the target is to improve their gross order value," Abhange explained. “There is pressure on growth. Even though they have just started posting profits, their valuations are still sky high. To justify those valuations, they need to keep showing growth, and that growth will come mainly by improving gross order value."

The Goldman Sachs report also said that while Blinkit is projected to clock 100%+ growth in NOV in FY26, food delivery growth is relatively muted, pegged at the high teens.

That divergence underscores why Zomato and Swiggy are heavily leaning on premiumization and healthy-eating trends to sustain momentum.

Swiggy’s average order value has steadily inched up over the years, rising from ₹407 in FY22 to ₹458 in FY25. Eternal (formerly Zomato) does not break out AOV in the same way, as it defines Net Order Value as Gross Order Value minus discounts.

Eternal’s food delivery NOV grew 20% year-on-year to ₹32,862 crore in FY25. Revenue from the segment rose faster, up 27% to ₹8,080 crore, driven largely by the growth in NOV. Yet Blinkit, its quick-commerce arm, is fast catching up—in Q1 FY26, Blinkit alone accounted for about ₹10,000 crore of Eternal’s total ₹20,183 crore net order value, almost rivalling the food delivery business in scale.

While Instamart accounted for 14% of Swiggy’s revenue in 2024-25, Blinkit contributed 26% to Eternal’s.

This push comes amid India’s growing trend toward healthy eating, even as both companies grapple with steep losses. Swiggy reported a loss of ₹896 crore in the quarter ended 30 June, while Eternal reported a sharp 90% year-on-year decline in net profit to ₹25 crore, as investments in ultra-fast delivery and an inventory-led model weighed on margins.

New user base

On Zomato, a regular smoothie bowl might cost around ₹250-300, but under Healthy Mode, similar bowls are often listed in the ₹350-450 range. A regular grilled sandwich is typically listed at around ₹180-200, while a multigrain or high-protein variant under Healthy Mode usually costs ₹280-320. A simple dal-chawal combo from a mainstream restaurant averages ₹150-180, but a quinoa-and-lentil bowl flagged as Healthy Mode can stretch to ₹300-350.

A Worldpanel by Numerator report found that Indian consumers are willing to pay 22% more for “healthy" variants of food products, with even lower socio-economic groups (SEC D/E) paying 17% more. Among affluent households earning ₹30 lakh or more, nearly 71% are willing to pay a premium for healthy and “pure" food, Mint had reported earlier.

Sachin Taparia, founder of Local Circles, said this can also unlock a new user base. “By making healthier options available, platforms can turn occasional users into regular ones—someone ordering twice a month could easily become a four- or five-times-a-month customer."

Yet, the balance between premium pricing and scale will be critical. Healthier options are generally priced 20-50% higher than regular dishes, but to attract volumes, they must be priced more competitively—with a maximum premium of 20%, Taparia noted.

And history offers cautionary lessons. “In the grocery space, premium offerings priced 30-50% higher have often struggled to find scale," Taparia said.