Zomato to be Eternal now

EVEN AS ZOMATO and Swiggy ramp up their quick commerce operations, their core food delivery business is witnessing slowing growth, adding to their financial pressures.

- RAGHAV AGGARWAL

Rising competition in the q-comm segment has forced both companies to increase spending, thereby impacting profitability. Analysts expect this trend to persist for the next two quarters before a potential turnaround.

Both companies reported weaker-than-expected earnings for Q3FY25. Zomato's net profit dropped 57% y-o-y to ₹59 crore, while Swiggy's losses widened to ₹799.08 crore from ₹574.38 crore a year earlier.

While revenues remain robust—Zomato's consolidated revenue grew 64% to ₹5,405 crore and Swiggy's 31% to ₹3,993 crore—rising expenses have squeezed margins. Zomato's expenses surged 63.55% to ₹5,533 crore and Swiggy's climbed 32.38% to ₹4,898.27 crore.