Zomato Q3FY25 results: Net profit drops 57% to Rs 59 cr, revenue rises 64%

This report has been updated  Food aggregator platform Zomato’s net profit fell over 57 per cent to Rs 59 crore in the third quarter (Q3) of 2024-25 (FY25), compared to Rs 138 crore during the same period a year ago. Net profit was down nearly 66.5 per cent from Rs 176 crore in the second quarter (Q2) of FY25.

 

The company’s revenue from operations rose 64 per cent year-on-year (Y-o-Y) to Rs 5,405 crore in Q3, up from Rs 3,288 crore a year ago. It had reported revenue of Rs 4,799 crore in the previous quarter.

 

On the profitability front, consolidated adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 128 per cent Y-o-Y to Rs 285 crore in Q3FY25, largely driven by improvement in food delivery. However, on a quarter-on-quarter (Q-o-Q) basis, consolidated adjusted Ebitda declined by 14 per cent. This was despite the improvement in food delivery margins, largely due to accelerated investments in expanding the quick commerce (qcom) store network, where quarterly losses increased by Rs 95 crore Q-o-Q, the company said.

 

Zomato’s cash balance increased to Rs 19,235 crore on account of the net proceeds of Rs 8,446 crore from a qualified institutional placement (QIP). The company had earlier received approval from its board of directors to raise up to Rs 8,500 crore via QIP.

 

Food delivery business

 

The adjusted revenue for the company’s food delivery business increased marginally to Rs 2,413 crore in Q3, up from Rs 2,340 crore a quarter ago, and Rs 2,062 crore in the year-ago period.

 

The gross order value (GOV) increased from Rs 9,690 crore in Q2FY25 to Rs 9,913 crore in Q3FY25. GOV increased from Rs 8,486 crore in Q3 of 2023-24 on a yearly basis. GOV growth on a Y-o-Y basis was up 17 per cent, slightly lower than what the company had stated in the past.

 

“Our 20 per cent+ Y-o-Y GOV growth guidance for the food delivery business is more long-term. There will be periods of higher and lower growth along the way. Currently, we are going through a broad-based slowdown in demand which started during the second half of November. Notwithstanding the current slowdown, we are positive about a recovery soon and remain confident in the long-term outlook of 20 per cent+ yearly GOV growth in the business, given the strong fundamentals,” Rakesh Ranjan, CEO - Food delivery business, Zomato. 

 

Average monthly transacting customers dipped slightly to 20.5 million compared to 20.7 million a quarter ago.

 

On the quick food delivery services, Zomato Co-founder and Chief Executive Officer Deepinder Goyal said, “Data has shown us time and again that bringing down delivery time creates incremental demand for restaurant food.” He added that bringing down delivery time from 45+ minutes to 30 minutes led to meaningful expansion in demand, and something similar can happen with 10-15-minute deliveries.

 

“Our learning here was that 10-minute deliveries would be possible only if we ensure kitchen networks are dense (and thereby cut down travel time), while also bringing down kitchen preparation time. Doing this consistently and profitably is not an easy problem to solve,” he said.

 

Blinkit

 

Zomato’s qcom arm Blinkit witnessed its revenue increasing 21 per cent sequentially to Rs 1,399 crore from Rs 1,156 crore a quarter ago.

 

The platform’s GOV for the quarter increased 27 per cent to Rs 7,798 crore, compared to Rs 6,132 crore a quarter ago.

 

While Blinkit’s average order value (AOV) crossed the Rs 700 mark in Q3, its dark store count exceeded the 1,000 range.

 

The AOV came in at Rs 707, up from Rs 660 in the previous quarter, and the dark store count increased Q-o-Q from 791 to 1,007. Blinkit’s average monthly transacting users reached 10.6 million in Q3, up from 8.9 million in Q2FY25.

 

“As of now, it seems like we will get to our target of 2,000 stores by December 2025, much earlier than our previous guidance of December 2026,” Goyal said.

 

Albinder Dhindsa, co-founder of Blinkit, said, “In the past two quarters, we have added 368 net new stores (152 in Q2FY25 and 216 in Q3FY25), accounting for about 37 per cent of our total store network of 1,007 stores.”

 

Going out

 

For Zomato’s going-out business, revenue jumped 68 per cent to Rs 259 crore in Q3, compared to Rs 154 crore in the previous quarter and Rs 73 crore in the year-ago period. The GOV increased to Rs 2,495 crore, from Rs 1,849 crore a quarter ago, and Rs 858 crore a year ago.

 

Zomato launched a new application (app), District, for its going-out services including dining, entertainment, and ticketing in November 2024. The app has now crossed 6.5 million downloads.

 

“While the core business continues to be profitable, the quarterly loss in Q3FY25 was largely driven by the investment in the new District app, including team, marketing, and technology costs,” said Rahul Ganjoo, head — going-out business, Zomato.

 

Hyperpure

 

Hyperpure, Zomato’s business-to-business supplies vertical, witnessed its revenue rise 13.4 per cent Q-o-Q to Rs 1,671 crore in Q3, compared to Rs 1,473 crore in the previous quarter. The company reported revenue of Rs 859 crore a year ago.