Zomato’s Profit Up by 253Cr, Revenue Rises by 74%

Zomato, a food delivery company headed by Deepinder Goyal, announced a significant increase in net profit in the first quarter of FY25, coming in at Rs 253 crore.

Compared to the Rs 2 crore net profit recorded in the same quarter last year—which was noteworthy because it was the company’s first financial profit since its IPO in 2021—this represents a significant increase.

This is the food delivery aggregator’s fifth consecutive profitable quarter. It is in competition with Swiggy, which is getting ready for an IPO.

Related: Swiggy Relaunches Premium Grocery Service ‘Handpicked’

When compared to the same quarter previous year, the company’s revenue climbed by 74% year on year to Rs 4,206 crore, from Rs 2,416 crore.

Zomato recorded a positive Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of Rs 177 crore for the quarter, in comparison to an EBITDA loss of Rs 48 crore during the same period in the previous year. This quarter’s EBITDA margin was 4.2%.

The quarter saw a 53% increase in Gross Order Value (GOV) to Rs 15,455 crore, primarily from consumer-facing operations such as food delivery, quick-commerce, and going out.

Zomato’s quick-commerce company, Blinkit, revealed an adjusted EBITDA loss of Rs 3 crore. In spite of this, the corporation exceeded their goal of 100 outlets by adding 113 stores.

Zomato has also succeeded in lowering the percentage of ESOP charges in total employee costs from 54% at the end of the 2022 fiscal year to 31% at the end of the 2024 fiscal year.

The entire cost of employees is currently down to 12%, and by the end of the 2026 fiscal year, it is anticipated to reach a range of 6-8%.

Zomato and Swiggy raised their platform fees from Rs 5 to Rs 6 each order last month, a 20% rise.

The increase in platform fees is thought to assist Swiggy meet its profitability ambitions, particularly given that company plans to issue an IPO shortly.

It is important to remember that the “platform fee” is not the same as other costs like delivery fees, restaurant fees, and goods and services tax (GST).

When these encouraging results were revealed, Zomato’s stock price rose significantly. The company’s shares surged 3.7% to reach an all-time high of Rs 238 per share on the BSE. Zomato’s stock price has increased 174% in the last year, and it is now trading at a P/E ratio of almost 148 times.