Zomato’s net profit for the December 2024 quarter (Q3 FY25) plunged by 57.24%, falling to Rs 59 crore, compared to Rs 138 crore in the same period last year. Following the announcement, the company’s stock dropped by as much as 7% during intra-day trading, closing 3.14% lower at Rs 240.95. Despite the significant dip in profit, Zomato’s revenue surged 64.39% year-on-year to Rs 5,405 crore for the quarter, up from Rs 3,288 crore in Q3 FY24. This was driven primarily by growth in the company’s food delivery segment.
Blinkit Losses Weigh on Overall Results
Zomato’s quick commerce business, Blinkit, recorded an EBIT loss of Rs 30 crore in the quarter. The company explained that the losses were due to accelerated investments aimed at expanding its store network, which were initially planned for future quarters.
Food Delivery Segment Shows Positive Performance
Zomato’s food delivery business reported a 26% year-on-year increase in EBIT. However, the company noted that gross order value (GOV) growth was muted, with only a 2% increase on a quarter-on-quarter basis, reflecting a broader slowdown in demand.
Blinkit’s Expansion Progress and Future Plans
In a positive development, Zomato’s Blinkit surpassed 1,000 stores, ahead of its original target. The company now aims to expand Blinkit to 2,000 stores by December 2025, one year ahead of its previous forecast.
Deepinder Goyal Comments on Strategic Direction
Zomato CEO Deepinder Goyal addressed the losses in Blinkit, stating that the company had pulled forward growth investments to accelerate expansion. He reaffirmed that Zomato was on track to meet its store expansion targets, emphasizing that Blinkit’s rapid growth would contribute to long-term profitability despite the current financial challenges.
