Zomato's Q3 FY25 net profit fell by 57% year-on-year to Rs 59 crore, primarily due to the increased investment costs from the rapid expansion of Blinkit. In the same quarter last year, Zomato had reported Rs 138 crore in net profit. Additionally, the company's net profit saw a sharp decline of 66.5% compared to Q2 FY25, which had a net profit of Rs 176 crore.
Despite this, Zomato’s consolidated adjusted EBITDA saw a remarkable 128% increase year-over-year, reaching Rs 285 crore in Q3 FY25. This increase is attributed to improvements in the food delivery business. However, margins declined due to investments made in expanding Blinkit’s network of quick commerce stores.
Zomato's food delivery business performed well, with adjusted revenue rising to Rs 2,413 crore in Q3 FY25, compared to Rs 2,062 crore in Q3 FY24 and Rs 2,340 crore in the previous quarter. Blinkit’s losses, however, were exacerbated, causing Zomato's net profit to be squeezed due to increased investment expenses.
On the revenue front, Zomato saw a 64.9% surge in Q3 FY25 revenue to Rs 5,405 crore, compared to Rs 3,288 crore in the same quarter last year. Quarterly revenue also grew by 12.6% from Rs 4,799 crore in Q2 FY25. Despite the increase in revenue, Zomato's stock price fell by more than 12% following the announcement of its Q3 results. As of January 20, Zomato's shares were trading at Rs 224.15 on the NSE, marking a significant 9% decline in a single session, its sharpest drop since June 2024.
Although the stock’s performance is down, market analysts and brokerages remain positive about Zomato's long-term growth potential, despite the impact of Blinkit's expansion on profitability in the short term.
