Zomato Q3 profit plummets, misses estimates

FOOD & GROCERY DELIVERY FIRM'S REVENUE ROSE 64% TO ₹5,405 CR; BLINKIT BOOSTS EXPANSION TO OUTPACE RIVALS

- RAGHAV AGGARWAL

FOOD DELIVERY AND quick commerce major, Zomato on Monday reported a 57% year-on-year decline in consolidated net profit for the October-December quarter, to ₹59 crore. The company missed Bloomberg estimates of ₹230 crore. Sequentially, the profit also dropped from ₹176 crore in Q2 FY25.

The company's revenue from operations was up 64% year-on-year to ₹5,405 crore, marginally exceeding Bloomberg estimates of ₹5,382 crore. However, rising costs, driven by aggressive expansion in its quick commerce arm Blinkit, weighed heavily on profitability. Total expenses soared to ₹5,533 crore, compared to ₹3,383 crore in Q3 FY24 and ₹4,783 crore in Q2 FY25.

Zomato's adjusted Ebitda surged 128% year-on-year to ₹285 crore in Q3 FY25, reflecting steady gains in operational efficiency and cost management in its core food delivery segment. However, adjusted Ebitda dropped 14% sequentially, largely due to Blinkit's expansion. Blinkit opened 216 new dark stores during the quarter, accelerating from 152 and 113 openings in the previous two quarters, respectively.

Albinder Dhindsa, CEO of Blinkit, attributed the accelerated rollout to strong customer demand. The company now aims to achieve the goal of 2,000 stores by December 2025, a year ahead of earlier projections.

In its food delivery business, Zomato reported slower growth amid a broader demand slowdown that began in late November. Gross order value (GOV) rose just 2% quarter-on-quarter to ₹9,913 crore in Q3, up 17% year-on-year. CEO Rakesh Ranjan acknowledged the dip but remained optimistic about long-term growth, forecasting annualised GOV growth of 20% in the segment.