Zomato reports a significant increase in revenue, but a drop in net profit for Q3FY25. The company’s quick commerce arm, Blinkit, faces losses despite rapid growth.
Zomato, India’s leading food delivery and hyperlocal quick commerce giant, has announced its financial results for the third quarter of fiscal 2024-25 (Q3FY25), showing a decline of 57.3% in net profit. The company reported a net profit of ₹59 crore ($7.2 million), down from ₹138 crore ($16.7 million) during the same period last year. Despite this dip, Zomato’s revenue from operations surged by 64.4%, reaching ₹5,405 crore ($651.5 million) compared to ₹3,288 crore ($398.5 million) in Q3FY24.
Founded by Deepinder Goyal, Zomato has established itself as a leader in the Indian food delivery and quick commerce sectors. The company also operates Blinkit, a prominent player in the country’s quick commerce market. While the food delivery business showed a solid increase of nearly 22% in revenue, Blinkit saw its revenue more than double. The company’s gross order value (GOV) in the B2C business, which includes quick commerce, food delivery, and going-out, rose 57% to ₹20,206 crore ($2.4 billion) in Q3FY25.
However, Zomato faced pressure on its margins, largely due to its aggressive expansion strategy for Blinkit. The quick commerce arm reported a net loss of ₹103 crore ($12.5 million) for the quarter, with a year-over-year EBITDA loss of ₹30 crore ($3.6 million). Despite these losses, Blinkit is experiencing rapid growth, having crossed the 1,000-store milestone in Q3, with plans to expand to 2,000 stores by December 2025.
The company’s overall expenses increased to ₹5,533 crore ($669.8 million) in Q3FY25, up from ₹3,383 crore ($407.5 million) in the previous year. Zomato’s EBITDA for the quarter rose significantly to ₹162 crore ($19.5 million), up from ₹51 crore ($6.1 million) in Q3FY24, reflecting stronger operational efficiency.
Zomato’s food delivery segment remains one of its most resilient and lucrative business areas, contributing over 38% of the total revenue. The company projects 30% annual growth in this segment over the next five years. Analysts have also highlighted Zomato’s strong execution capabilities, positioning it well to fend off emerging competition, especially from rivals like Swiggy and new entrants in the quick commerce space.
Despite the short-term losses from Blinkit and ongoing competitive pressures, Zomato’s leadership in India’s food delivery sector and its innovative approach to hyperlocal delivery services remain key drivers of its market success. Zomato shares closed at ₹240.95 ($2.9) on the Bombay Stock Exchange, down 3.14% following the announcement of the results.
