Zomato’s Q1 FY25 net profit jumps multi-fold to Rs 253 million; stocks soar

Mumbai: Zomato’s net profit rose 126.5 times to Rs 253 crore in the April-June quarter (Q1) compared to the same period last year, media reports said.

As reported by Moneycontrol, this significant increase was due to higher platform fees charged to consumers and improved operating profitability of Blinkit’s instant shopping division.

Shares of food delivery and fast-paced retailer Zomato surged 19% to a record high of Rs 278.45 apiece on the BSE on Friday after it reported its first-quarter results. The company’s market capitalisation briefly touched $30 billion.

On Friday, the stock closed at Rs 262.45 per share, up 12% from its previous close.

Over the past year, Zomato’s share price on the BSE has almost tripled.

This quarter was also the fifth consecutive quarter in which Zomato reported a profit.

The company’s revenue grew 74 per cent year-on-year to Rs 4,206 crore even as the overall e-commerce sector grappled with headwinds of high inflation and reduced demand.

In the same quarter last year, Zomato had for the first time posted a net profit of Rs 2 crore and a revenue of Rs 2,416 crore, the report said.

Since then, Zomato’s share price has seen a sharp increase, driven by rising profitability from the company’s core business and the rapid growth of Blinkit.

According to the report, Zomato’s share price has surged 174 per cent in the last one year and the company currently trades at a P/E ratio of around 148 with a market capitalisation of over Rs 2 lakh crore (over $25 billion).

Zomato’s food delivery gross order value (GOV) grew 27 per cent to Rs 9,264 crore during the quarter, while its quick trade gross order value (GOV) grew 130 per cent to Rs 4,923 crore, compared to a year ago.

The company noted that the rise of express commerce has led to a change in consumer behavior, with many non-grocery purchases moving from traditional e-commerce to express commerce for faster delivery.

“As of now, we see a line of sight to reach around 2,000 stores for our existing business. Most of these stores would be in the top 10 cities in India. Apart from the big cities, the market size is still unexplored. If everything goes as planned (which it usually doesn’t), we plan to reach 2,000 stores by the end of 2026 at the latest, while remaining profitable,” Blinkit CEO Albinder Dhindsa told Moneycontrol.

“Our average GOV (gross order value) throughput per store has increased from around Rs 6 lakh per day per store when exactly a year ago we had 383 stores to around Rs 10 lakh today when we have 639 stores. For our top 50 stores today, the figure is Rs 18 lakh per day per store and growing,” he added.

Meanwhile, the company announced the launch of a new consumer app called “District” for its dating business, marking a broader expansion into a variety of lifestyle services.

The app will include restaurants, cinemas, sporting event tickets, live performances, shopping, home vacations and more – all integrated into one platform.

“Today, Zomato and Blinkit are our two large consumer businesses that cater to the needs of customers at home. However, we also have one of the largest ‘outbound’ businesses in India that helps our customers discover restaurants to eat out,” founder Deepinder Goyal said, according to the report.

He noted that the profitable company operates with an annual gross order value (GOV) of more than $500 million.