Tue Jan 21 06:54:24 UTC 2025: ## Zomato’s Q3 Profit Plunges Despite Revenue Surge, Driven by Expansion

**Mumbai, [Date]** – Zomato, the Indian food delivery giant, reported a significant drop in its fiscal third-quarter profit on Monday, despite a substantial increase in revenue. The company’s net profit plummeted 57.25 percent to Rs 59 crore (approximately $7.1 million USD), compared to Rs 138 crore in the same period last year. This decline is primarily attributed to aggressive expansion of its Blinkit quick-commerce platform, which involved increased spending on new stores and warehouses.

Zomato’s revenue from operations, however, soared 64.39 percent to Rs 5,405 crore (approximately $650 million USD), up from Rs 3,288 crore in Q3 FY24. The company’s EBITDA stood at Rs 162 crore.

CFO Akshant Goyal explained that the substantial investment in new stores (368 net new stores added in the last two quarters) is currently impacting profitability, resulting in under-utilized capacity in the short term. He anticipates this trend to continue for the next one to two quarters, but expects significant profitability gains once the expansion phase concludes. This expansion also included the addition of 1.3 million square feet of warehousing space.

CEO of Blinkit, Albinder Dhindsa, highlighted that the increased capital expenditure (approximately Rs 370 crore in the last two quarters) and higher digital marketing spend contributed to the profit drop. While the average monthly transacting customers grew to 10.6 million, Dhindsa expects elevated capital expenditure for several more quarters.

Despite the profit decline, Zomato’s Gross Order Value (GOV) across its businesses demonstrated strong year-on-year growth. B2C GOV grew by 57 percent to Rs 20,206 crore. However, the food delivery segment showed only modest quarter-on-quarter growth, attributed to a broader demand slowdown. Quick commerce GOV grew significantly (120 percent YoY). Zomato’s B2B business, Hyperpure, also experienced strong growth with a 95 percent YoY increase in revenue.

While Blinkit reported a net loss of Rs 103 crore and an EBITDA loss of Rs 30 crore, Zomato remains optimistic about its long-term prospects, projecting continued high growth in GOV for the next two fiscal years. The company attributes the current losses to strategic investments aimed at achieving substantial future profitability.

**(Note: The unrelated information about Saif Ali Khan has been omitted from this news article.)**

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