Food delivery and quick commerce platform Zomato on Monday reported a 57.2% drop in its net profit to ₹59 crore for the December 2024 quarter (Q3 FY25), down from ₹138 crore during the base quarter according to a regulatory filing. The start-up’s net profit declined 66.5% from ₹176 crore in Q2 FY25.
Soon after the Q3 results were released, Zomato shares sharply fell around 7%, hitting a day’s low of ₹228.25 at the National Stock Exchange (NSE). At market closing, the food delivery giant’s shares fell 7.27% to ₹230.70.
Despite the decline, the food delivery platform’s revenue during October-December 2024 increased by 64% from the same quarter last year to ₹5,405 crore. The reported revenue in the same quarter last year was ₹3,288 crore and the revenue in the previous quarter was ₹4,799.
Zomato reported a 128% year-on-year (Y-o-Y) increase in consolidated Adjusted Ebitda (earnings before interest, taxes, depreciation, and amortisation) to ₹285 crore in Q3 FY25, owing primarily to an improvement in the food delivery Adjusted Ebitda margin, which increased to 4.3% of Gross Order Value (GOV) from 3.0% the previous year.
On a quarterly (Q-o-Q) basis, consolidated Adjusted Ebitda fell by 14% (or ₹45 crore). This reduction was ascribed to faster investments in growing the quick commerce shop network, which resulted in a ₹95 crore Q-o-Q increase in quarterly losses, despite an improvement in food delivery margins, according to the company's exchange report.
Zomato’s Response
Talking about the reported loss, Zomato founder & CEO Deepinder Goyal said, “The losses in our quick commerce business this quarter are largely on account of pulling forward the growth investments in the business that we would have otherwise made in a staggered manner over the next few quarters. As of now, it seems like we will get to our target of 2,000 stores by Dec 2025, much earlier than our previous guidance of Dec 2026.”
