Zomato Q3 preview: Analysts expect PAT to rise 66% YoY, revenue 67%

Food delivery platform Zomato is slated to release its third quarter (Q3FY25) earnings on Monday, January 20, 2025.

 

Brokerages tracked by Business Standard estimate Zomato's profit after tax (PAT), on an average, to increase 65.5 per cent year-on-year (Y-o-Y) to Rs 228.5 crore as compared to Rs 138 crore a year ago. On a quarter-on-quarter (Q-o-Q) basis, PAT is forecasted to grow 29.8 per cent.

 

The company's revenue, on average, for the third quarter ended December 31, 2024, is estimated at Rs 5,497.86 crore as compared to Rs 3,288 crore a year ago which implies a rise of 67.2 per cent Y-o-Y. Sequentially, the revenue is likely to rise 14.5 per cent.

 

Analysts and investors will eye the outlook on Blinkit, a quick commerce company owned by Zomato. Moreover, growth and margin outlook will also be on the radar. 

Here's what analysts expect from Zomato Q3FY25:

Motilal Oswal: The gross merchandise value (GOV) for the food delivery/quick commerce businesses is expected to grow 22 per cent/ 113 per cent Y-o-Y, with take rates of 21 per cent/19 per cent, driving an overall revenue growth of 66 per cent Y-o-Y in 3QFY25.  

 

Further, for the food delivery business, adjusted Earnings before interest, tax, depreciation and amortisation (Ebitda) as a per cent of GOV margin is expected to inch up 10 basis points (bps) Q-o-Q to 3.6 per cent.

 

Blinkit is likely to post a contribution margin of 3.7 per cent and an adjusted Ebitda margin of -0.1 per cent in Q3. Blinkit is projected to sustain its growth momentum with 24 per cent/123 per cent Q-o-Q/Y-o-Y growth. Hyperpure, a business-to-business (B2B) platform owned by Zomato, is anticipated to continue its upward trajectory.

 

The company's overall Ebitda is expected at Rs 258.3 crore as compared to Rs 51 crore a year ago and Rs 226 crore in Q2. Ebitda margin is estimated at 4.7 per cent as compared to 1.6 per cent a year ago and 4.7 per cent in Q2.

 

JM Financial: In food delivery, JM Financial analysts forecast sequential GOV growth of 3.9 per cent increase of 18.6 per cent Y-o-Y. Take-rates are anticipated to expand to 21.3 per cent in 3QFY25 as compared to 20.8 per cent in 2QFY25.

 

The brokerage expects adjusted Ebitda margin (as  per cent of GOV) to expand 40 bps sequentially.  

 

Overall, the company's Ebitda is likely at Rs 201.3 crore as compared to Rs 51 crore a year ago and Rs 226 crore in Q2. Ebitda margin is likely at 3.7 per cent as compared to 1.6 per cent a year ago and 4.7 per cent in Q2.

 

For Blinkit, sequential GOV is expected to grow 22.2 per cent led by robust increase of 19 per cent in order volumes. Take-rates may reach 18.8 per cent from 18.9 per cent in 2Q. Contribution margins are likely to contract to 2.5 per cent (as  per cent of GOV) as compared to 3.8 per cent in 2Q.  ALSO READ: Tech Mahindra Q3FY25: Net profit jumps 93% to Rs 983 cr, revenue up 1.4%

 

At a consolidated level, after factoring Employee Stock Ownership Plan (ESOP) cost of Rs 207 crore as compared to Rs 179 crore last quarter, reported Ebitda is likely to decline to Rs 2.01 billion as compared to Rs 2.26 billion in 2Q, while profit after tax (PAT) is expected to grow to Rs 198 crore as compared to Rs 176 crore in 2Q due to higher other income.

 

B&K Securities: The brokerage believes Zomato should continue its trajectory of healthy topline growth coupled with improving performance in terms of bottomline. Continued execution in the quick commerce vertical should enhance Zomato’s performance.

 

Analysts at B&K Securities expect Zomato's top line growth by 70 per cent Y-o-Y to Rs 5,589.6 crore as compared to Rs 5439.2 crore a year ago. The bottom line is anticipated to grow 59.4 per cent Y-o-Y to Rs 220 crore as compared to Rs 138 crore a year ago.