Zomato Q3 results: Zomato on Monday reported a 57.24 per cent drop in its net profit to Rs 59 crore for the December 2024 quarter (Q3 FY25), according to a regulatory filing. Following this, its shares declined 7 per cent intra-day and closed at Rs 240.95 per share, down 3.14 per cent from the previous day.
However, the food delivery platform’s revenue grew 64 per cent to Rs 5,405 crore during October-December 2024 as against Rs 3,288 crore in the same period a year ago.
Importantly, its quick commerce Blinkit, which had kept Zomato profitable in previous quarters, has reported an EBIT loss of Rs 30 crore. EBIT means earnings before interest and tax.
In a positive development, the EBIT of Zomato’s food delivery business has grown 26 per cent year-on-year. According to a regulatory filing on Monday, Zomato told investors, “The loss in our quick commerce business this quarter is largely due to further growth investments in the business, which we would have otherwise phased in over the next few quarters. As of now, it looks like we will achieve our target of 2,000 stores by December 2025, well ahead of our previous guidance of December 2026.”
While the company has improved profitability on a year-on-year basis – consolidated adjusted earnings before interest, tax, depreciation and amortization (EBITDA) grew 128 per cent to Rs 285 crore in Q3FY25 – due to improved food delivery, its margins have declined on a sequential basis due to investments made in expanding its quick commerce store network.
Its consolidated adjusted EBITDA narrowed 14 per cent (~Rs 45 crore) compared to the previous quarter. In fact, Blinkit’s quarterly loss widened by Rs 95 crore.
Total expenses for the Gurugram-based firm rose to Rs 5,533 crore in the quarter ended December from Rs 3,383 crore a year ago and Rs 4,783 crore in the same quarter. Its cash balance by the end of the quarter increased to Rs 5,533 crore to Rs 19,235 crore, mainly due to net proceeds of Rs 8,446 crore raised through recent qualified institutional placement (QIP).
Zomato Q3 results: Net profit decrease 57.2% to Rs 59 crore as against Rs 138 crore a year ago; shares fall
