Zomato’s Profit Plunges 57%, But Revenue Defies Odds with 64% Surge

Zomato has unveiled a mixed bag of results for Q3 FY 25, showcasing remarkable revenue growth despite a steep drop in profits. The company’s profit plunged 57.24% YoY to ₹59 crore, significantly lower than ₹138 crore in Q3 FY 24. Analysts attribute the decline to a “broad-based demand slowdown” coupled with a 66.47% dip in profit after tax from the previous quarter.

On the brighter side, Zomato’s revenue surged by an impressive 64.35% YoY to ₹3,288 crore, driven by consistent demand for its food delivery services. Its flagship food delivery business clocked ₹2,072 crore in revenue, marking a 21.59% increase YoY.

The company’s other segments showcased stellar performance too. The B2B vertical, Hyperpure, reported a revenue spike of 95% YoY to ₹1,671 crore, while the “Going Out” category skyrocketed by 254%, thanks to the launch of Zomato’s new events app, Distric. Meanwhile, Blinkit contributed ₹1,399 crore to revenue, despite operating losses of ₹103 crore due to aggressive growth investments.

However, operational challenges loom large. Rising delivery expenses, now at ₹1,450 crore (up 35.76% YoY), have pressured profit margins. Zomato’s cash balance of ₹19,235 crore reflects financial resilience, but market sentiment remains cautious as shares dropped by 7.12% to ₹240.95.

Will Zomato balance growth with profitability in the quarters ahead? Stay tuned.