Mon Jan 20 15:02:22 UTC 2025: ## Zomato Reports Strong Revenue Growth, but Net Profit Dips in Q3 FY25

**Mumbai, January 20, 2025** – Zomato Ltd. announced its third-quarter (Q3) financial results for fiscal year 2025 today, revealing a mixed bag of performance. While the company reported robust revenue growth, driven by strong performance in its food delivery and quick commerce segments, net profit experienced a significant decline.

Revenue from operations soared by 64% year-on-year (YoY) to ₹5,405 crore, exceeding analyst expectations. This surge was fueled by a 21.5% YoY increase in online food delivery revenue (₹2,072 crore) and a remarkable 117% YoY jump in quick commerce (Blinkit) revenue to ₹1,399 crore, attributed to aggressive store expansion. Analysts had predicted revenue growth of around 66%.

However, Zomato’s net profit took a hit, plunging 57% YoY to ₹59 crore compared to ₹138 crore in the same period last year. The company attributed the decline in part to increased advertising expenses (up 40% YoY to ₹521 crore) and higher delivery charges (up 35.7% YoY to ₹1,450 crore). CFO Akshant Goyal acknowledged a near-term loss-making outlook due to ongoing store expansion in Blinkit, anticipating that this investment will yield significant growth in gross order value (GOV) exceeding 100% for FY25 and FY26. The company aims to add 1,000 new Blinkit stores by December 2025.

Despite the dip in net profit, analyst sentiment remains largely positive. Kotak Institutional Equities maintained a ‘Buy’ rating, highlighting the healthy growth momentum in food delivery and Blinkit’s strong scaling. JM Financial also offered a positive outlook, projecting continued GOV growth and take-rate expansion for both segments. However, concerns remain regarding competitive intensity and the impact on Blinkit’s profitability in the short term.

Zomato’s share price experienced volatility throughout the day, initially dropping significantly after the results announcement before partially recovering to close at ₹240.95, down 3.14% for the day. The stock’s performance reflects the market’s reaction to the company’s strong revenue growth juxtaposed with the decrease in net profit.

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