Zomato Clocks 57% Net Profit Drop at Rs 59 Crore in Q3
Online food delivery giant Zomato reported a 57% decline in net profit (year-on-year) at Rs 59 crore in the third quarter (Q3) of FY25, down from Rs 176 crore during the same period last fiscal.
New Delhi: Online food delivery giant Zomato reported a 57% decline in net profit (year-on-year) at Rs 59 crore in the third quarter (Q3) of FY25, down from Rs 176 crore during the same period last fiscal.
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Revenue Growth Despite Profit Decline
Despite the profit slump, Zomato‘s revenue from operations surged by 64% to Rs 5,404 crore in Q3, compared to Rs 3,288 crore in the same quarter last year. The company’s revenue in Q2 of FY25 was Rs 4,799 crore.
Increase in Expenses
Zomato’s expenses rose significantly, increasing by 64% to Rs 5,533 crore in Q3. The quick commerce segment, however, reported robust growth, with revenue increasing by 117% year-on-year to Rs 1,399 crore, up from Rs 644 crore during the same period last year.
CFO’s Outlook on Profit and Growth
Zomato CFO Akshant Goyal stated, “As we continue to bring forward store expansion, our networks may have to carry a greater load of under-utilised stores, which will impact near-term profits in the next one or two quarters.”
He added that these investments are expected to result in gross operational value (GOV) growth remaining above 100% for FY25 and FY26.
Expansion Plans for Blinkit
The company shared updates on its expansion strategy, planning to launch 1,000 new Blinkit stores by December 2025. Zomato Founder and CEO Deepinder Goyal expressed optimism, stating, “We will likely achieve our target of 2,000 stores by December 2025, much earlier than our previous guidance of December 2026.”
Quick Commerce Growth
Zomato’s quick commerce GOV grew by 120% year-on-year and 27% quarter-on-quarter. Blinkit Founder and CEO Albinder Dhindsa highlighted the strong customer retention and robust margin profile in mature parts of the business.
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Stock Market Reaction
Zomato’s shares dropped nearly 7% in Monday’s trading session after the results were announced. However, the stock traded in green earlier in the day before the decline.
Leadership’s Take
Goyal acknowledged that the losses in the quick commerce business this quarter were due to accelerated growth investments. He reaffirmed confidence in the long-term quality of the business, driven by strong customer retention and operational margins in established segments.
