Zomato's parent Eternal Q4 net profit falls 78% to ₹39 cr, revenue up 64%

The net profit of Eternal (formerly known as Zomato) in the fourth quarter of FY25 fell 77.7 per cent to ₹39 crore as against ₹175 crore during the same period a year earlier.

 

On a sequential basis profit was down 33.8 per cent from ₹59 crore.  

 

The company’s revenue for the quarter rose 63.7 per cent year-on-year (Y-o-Y) to ₹5,833 crore in Q4, up from ₹3,562 crore a year earlier.

 

The consolidated adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) declined 15 per cent Y-o-Y to ₹165 crore in Q4FY25, largely on account of the enhanced investment in expanding the company’s quick commerce store network.

 

 

For the full year, the company reported consolidated revenue of ₹20,243 crore, up 67 per cent from ₹12,114 crore in FY24.

 

Food delivery

 

Adjusted revenue for food delivery grew 17 per cent Y-o-Y to ₹2,413 crore from the corresponding quarter last financial year of ₹2,050 crore. On a sequential basis, food-delivery revenue was down 0.2 per cent.

 

Food delivery, which continues to be the firm’s largest revenue contributor, has been experiencing sluggishness. The company said that was due to weak demand, shortages of delivery partners due to high demand in quick commerce and competition from the quick delivery of packaged food from quick commerce players.

 

The gross order value (GOV) increased from ₹9,913 crore in Q3FY25 to ₹9,778 crore in Q4FY25.

 

The GOV increased from ₹8,439 crore in Q4 of 2023-24 on a yearly basis.

 

The number of average monthly transacting customers increased slightly to 20.9 million over 20.5 million a quarter earlier.

 

Deepinder Goyal, founder and chief executive officer (CEO), Eternal, said: “Competition in food delivery has always been high, and the intensity of it hasn’t changed in the last quarter. Our market share has been stable for the last few months and we are hoping we can drive some share gain going forward.”

 

Eternal said it had delisted nearly 19,000 restaurants in the fourth quarter. These were restaurants that did not pass hygiene standards, or were mimicking established brands and misleading customers, or were operating multiple identical menu listings.

 

The company mentioned shutting down its in-app instant food delivery services Zomato Quick and Zomato Everyday, adding that it did see profitability in these initiatives.

 

The revenue of Blinkit, the quick commerce arm of Eternal, in Q4FY25 touched ₹1,709 crore. The platform’s GOV for the quarter increased to ₹9,421 crore, compared to ₹7,798 crore a quarter ago.

 

The platform’s average monthly transacting customers also increased to 13.7 million in Q4FY25 up from 10.6 million in Q3FY25.

 

Blinkit opened 294 net new stores in Q4FY25. The company said it was its highest ever addition in a quarter. According to the company, Blinkit is on track to get to 2,000 stores by December. It now has 1,301 stores.

 

Going out

 

For the Eternal going-out business, revenue rose 146.2 per cent to ₹229 crore in Q4 as against ₹93 crore in the year-ago period. On the other hand, GOV jumped to ₹2,184 crore in Q4FY25 compared to ₹1,069 in Q4FY24.

 

The company said the district app was scaling and one-third of going-out GOV comes from the app.

 

Hyperpure, Eternal’s business-to-business supplies vertical, revenue was up 93.4 per cent Y-o-Y in Q4FY25 at ₹1,840 crore in Q4.