Eternal, which operates food delivery platform Zomato, has raised its platform fee by about 20% to ₹15 per order, a move that analysts say will strengthen margins without denting demand, even as the company continues to see healthy user growth.

The revised fee brings Zomato at par with Swiggy and marks a steady escalation since the charge was first introduced at ₹2 in August 2023, now up 7.5 times. Despite the increase, analysts believe the fee remains too small relative to order values to deter users.

“Every ₹1 increase in platform fee should result in ~26 basis points (bp) expansion in take rate and an incremental adjusted EBITDA impact of around ₹1.2 billion, or nearly 5% of base EBITDA,” said Karan Taurani, executive vice president of Elara Capital.

Also read: Zomato hikes food delivery platform fee by 19% to ₹14.9 per order

Margin tailwinds without demand risk

At ₹15 per order, the platform fee accounts for about 3.1% of the average order value (AOV) of roughly ₹475, limiting the risk of demand elasticity. Taurani noted that even with partial implementation, the upside to profitability is meaningful.

“In our base case, assuming 50% implementation across markets, we expect a ~40bp improvement in take rate and a ₹1.8 billion uplift, about 7.5%, to FY27 estimated adjusted EBITDA,” he said.

The brokerage estimates that Eternal’s adjusted EBITDA margin, which stood at 5.4% in Q3FY26, could reach 6% by FY28, in line with management’s 5–6% guidance band. The current fee hike is already factored into these projections.

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User growth supports pricing power

Crucially, Zomato’s growth metrics suggest resilience to incremental pricing. Monthly transacting users (MTUs) have accelerated sharply from 9% growth in Q3FY22 to around 22% in Q3FY26 - supporting order volumes and overall gross order value (GOV).

While the broader food delivery sector saw a slowdown between Q3FY25 and Q2FY26, GOV growth has rebounded to over 20% in Q3FY26, led by user expansion. This recovery, Taurani said, improves the platform’s ability to sustain gradual fee hikes.

“The rebound in MTU growth should aid elasticity and support Zomato’s ability to charge higher platform fees without impacting order flows,” he added.

Beyond margin expansion, the platform fee also provides a cushion against external cost shocks, particularly fuel prices. With electric vehicle penetration among gig workers still low (about 10% in food delivery) any rise in fuel costs could pressure earnings.

Also read: Why Swiggy, Zomato have increased platform fees ahead of festive surge

“As per our assessment, every 10% increase in fuel prices could negatively impact food delivery EBITDA by nearly ₹0.9 billion, or about ₹1 per order,” Taurani said. “Higher platform fees can act as a partial hedge against such cost pressures.”

Elara Capital has retained its ‘Buy’ rating on Eternal, with a target price of ₹415 per share, valuing the food delivery business at 55 times EV/EBITDA.

As of the latest trading session, Eternal's share price is currently at ₹227.5, which is down by ₹-4.78 from its previous closing.