Zomato Shares Surge as Platform Fee Hike Sparks Investor Interest The Bridge Chronicle
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Zomato Shares Surge as Platform Fee Hike Sparks Investor Interest

Zomato's increase in platform fees enhances its profitability and margins, with brokerages maintaining a positive outlook. Although this move has traditionally been favorable for the stock, the recent decline seems to be influenced more by overall market sentiment than by the company's fundamentals.

Akanksha Kumari

Zomato has discreetly increased its platform fee by Rs 2.40 per order, a minor adjustment that could accumulate for regular users. Although customers might notice the impact, analysts view this as a strategic enhancement to the company's financial performance and future profitability.

Before GST, the platform fee has increased to Rs 14.90 per order from the previous Rs 12.50. With GST included, the platform fee per order is now Rs 17.58.

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The company located in Gurugram last increased this charge in September 2025. Its competitor, Swiggy, presently imposes a fee of Rs 14.99 per order, inclusive of GST, with both firms generally keeping these charges almost equal.

Following the inclusion of GST, the total expense of an order, which encompasses the platform fee, has risen by Rs 2.68, or about 18 percent, resulting in a slight increase in food delivery costs for consumers.

Interestingly, despite the recent increase, Zomato's platform fee is still slightly less than Swiggy's, which is Rs 14.99. This makes Zomato's fee approximately 0.6 percent lower than its rival's present rate.

Increase in profitability compared to worries about demand

The advancement prompts a crucial inquiry: Will this action bolster the company's financial standing, or might it exert pressure by affecting demand?

Elara Capital reports that each Re 1 rise in platform fees positively affects take rates. In particular, Zomato experiences a 22 basis points enhancement, and Swiggy observes a 20 basis points increase, underscoring the margin-enhancing effect of these increments.

Bernstein remains Bullish

After this development, the brokerage firm Bernstein has continued to hold an optimistic view of the food delivery platform.

Bernstein has kept an 'Outperform' rating for Eternal, with a target price remaining at Rs 370, suggesting a potential increase of 62.5 percent from the present market value.

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