India's quick commerce sector will see net order value growth accelerate to 21.6 percent in Q2FY27, an Emkay report said. Food delivery platforms should maintain steady 18 percent growth. "We see NOV growth of quick commerce companies accelerating," it noted. Meanwhile, new UPI charges start on October 15 for some transactions.
According to an Emkay report, India's quick commerce sector is projected to accelerate NOV growth to 21.6 percent in Q2FY27. Food delivery platforms are expected to sustain around 18 percent year-on-year NOV growth as competition rises during the festive season. The fintech sector will also experience steady revenue growth, although year-on-year payment revenue may be impacted.
New Delhi: India's quick commerce sector is expected to see faster net order value (NOV) growth, while food delivery platforms are likely to maintain steady momentum according to an Emkay report.
According to the report, India's quick commerce sector is witnessing consolidation, with net order value (NOV) growth for leading platforms expected to accelerate to as much as 21.6 per cent quarter-on-quarter in Q2FY27, as higher minimum order values and reduced discounts as some platforms shift demand towards competitors.
"We see NOV growth of quick commerce (Qcom) companies accelerating," it said.
Meanwhile, the food delivery segment is expected to maintain steady growth of around 18 per cent year-on-year in order value. "As we step into the festive season (3Q), we expect competition to intensify," it further noted, adding, "Food Delivery should maintain momentum - ~18% NOV growth and a sustained margin trajectory."
At the same time, Emkay said, India's fintech sector is expected to witness steady revenue growth and improving profitability in Q2FY27, supported by operating leverage, even as the shift in festive-season spending to the third quarter could weigh on year-on-year payment revenue growth.
"Payment companies will see an impact, with the FY27 festive period shifting to 3Q vs 2Q and 3Q in FY26," it said.
Meanwhile, the implementation of merchant discount rates (MDR) on UPI transactions from October 15 is expected to remain a crucial factor for the sector, it said.
Under the new framework announced by the government and the National Payments Corporation of India (NPCI), a 0.4 per cent merchant discount rate (MDR) will be levied from October 15 on certain UPI person-to-merchant (P2M) transactions exceeding Rs 2,000.
The charge will be capped at Rs 300 for transactions of Rs 75,000 and above, while person-to-person (P2P) transfers, merchant payments up to Rs 2,000 and transactions involving eligible small merchants under the zero-MDR framework will remain exempt.
According to the Emkay report, India's digital platform companies are offering attractive investment opportunities, supported by strong long-term growth potential and high operating leverage. However, it flagged differences in growth trajectories, profitability and business maturity make direct comparisons of earnings valuations difficult.
"We believe that platform companies offer attractive value, considering their long growth runway and high operating leverage. Earnings multiples are not comparable across platforms, as each player has a different growth profile and operating leverage and is at a different stage of profitability," it said.