Amazon India’s quick commerce and grocery business, operating under Amazon Now and Amazon Fresh, reported a Rs 1,158 crore loss in FY26, nearly tripling the previous year’s deficit. The segment grew revenue 50% year-over-year but faced steep cost pressures and intensifying competition from rivals like Blinkit, Instamart, and Zepto.
- Loss widened 194% year-on-year to Rs 1,158 crore in FY26
- Revenue increased 50% to Rs 3,065 crore despite losses
- Amazon plans $3 billion investment in India quick commerce by 2030
What happened
Amazon India’s quick commerce and grocery arm, Amazon Retail, which includes Amazon Now and Amazon Fresh, reported losses of Rs 1,158 crore for the fiscal year ending March 2026. This represents a 194% increase compared to Rs 394 crore losses posted in FY25. Despite this, the business saw significant revenue growth, reaching Rs 3,065 crore, marking a 50% year-over-year increase.
The surge in losses was primarily driven by escalating expenses, which rose 73% year-on-year to Rs 4,238 crore. Key cost drivers included heightened delivery charges and procurement costs. The company operates over 800 dark stores in more than 120 cities and is aiming to expand its footprint to 1,300 stores by April 2027, signaling aggressive growth despite profitability challenges.
Why it matters
The significant losses highlight the intense pressure Amazon faces in India’s fast-growing quick commerce market, where competition is fierce with established players like Blinkit, Instamart, Zepto, as well as newer entrants such as Flipkart Minutes and BBNow. These rivals operate larger dark store networks, increasing the pace and scale competition for Amazon.
Amazon’s commitment to expand its quick commerce business with a planned $3 billion investment through 2030 underscores the strategic importance of this segment. India’s quick commerce market is expected to more than double in size to $41 billion by 2030, making it a critical battlefield for ecommerce players looking to dominate everyday essentials delivery.
What to watch next
Market watchers should monitor how Amazon balances its expansion plans with the urgent need to control costs and improve margins. The company’s ambition to grow its dark store count to 1,300 within the next year will be a key indicator of how aggressively it pursues scale despite ongoing losses.
Additionally, the reported potential wind-down of Amazon Fresh in major Indian cities to shift focus toward the faster quick commerce model, Amazon Now, suggests a strategic pivot that could redefine Amazon’s grocery delivery approach. How successfully Amazon manages this transition may impact its competitiveness and profit trajectory in the near term.