Zomato Q3 Results: Zomato announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Monday, January 20, reporting a drop of 57.3 per cent in net profit to ₹59 crore, compared to ₹138 crore in the corresponding period last year. The leading food delivery app major’s net profit plunged due to margins, which continues to face pressure from the high spending on opening more centres to fulfil orders at its quick commerce platform, Blinkit.

Deepinder Goyal-led food delivery and hyperlocal quick commerce giant’s revenue from operations in the third quarter of the current fiscal rose 64.4 per cent to ₹5,405 crore, compared to ₹3,288 crore in the year-ago period. The gross order value (GOV) of its B2C business (quick commerce, food delivery, and going-out) rose 57 per cent to ₹20,206 crore in the December quarter.

Follow Live Updates: Zomato Q3 Results LIVE: Net profit plunges 57% YoY to ₹59 crore; revenue up 64% YoY

Zomato Q3 Results: Key Metrics

Revenue in the food delivery business increased nearly 22 per cent in the quarter, while revenue from Blinkit, the market leader in the country’s quick commerce space, surged more than two-fold. On the operational front, Zomato’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to ₹162 crore, compared to ₹51 crore in the same period last year.

Zomato’s total expenses surged to ₹5,533 crore compared to ₹3,383 crore in the year-ago period. While Blinkit is growing faster than food delivery, it faces competition from rival Swiggy’s Instamart, start-up Zepto and deep-pocketed rivals such as Walmart-backed Flipkart and Tata Group-backed BigBasket. Blinkit remained loss-making, reporting a net loss of ₹103 crore in the quarter.

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Blinkit will reach the 2,000-store mark by December 2025, a full year ahead of its initial guidance of December 2026. Zomato announced that Blinkit crossed the 1,000-store mark in the December quarter. The company’s EBIT margin rose to three per cent, compared to 1.6 per cent in the year-ago period.

Blinkit reported an EBITDA loss of ₹30 crore, compared to a positive EBITDA of ₹48 crore in the year-ago period. Zomato, which has a market share of around 46 per cent in the quick commerce segment, has ramped up discounts and free deliveries while investing in expanding the number of ‘dark stores’ and warehouses to ship orders in urban centres. On Monday, shares of Zomato settled 3.14 per cent lower to ₹240.95 apiece on the BSE while declaring the Q3FY25 results.

According to brokerages, Zomato is seen as the most resilient player in the hyperlocal delivery space. According to experts at JM Financials, Zomato is the only major hyperlocal delivery company in the country that, at a consolidated level, is generating free cash flows without compromising topline growth.

It indicates the strong execution capabilities of the management, giving the confidence that Zomato is the best-placed company to fend off emerging competitive threats in quick commerce. “We, therefore, prefer Zomato over Swiggy (BUY, ₹550) amongst the two listed hyperlocal delivery players, post a recent correction in both stocks,” said analysts at JM Financials.

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