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Key Points

Zomato reported a substantial 77% decline in net profit for Q4 FY25, dropping to Rs 39 crore from the previous year's Rs 175 crore. Despite the profit decline, the company saw a 64% revenue growth, reaching Rs 5,833 crore. Expenses dramatically increased by 67%, rising to Rs 6,104 crore, which impacted the bottom line. CEO Deepinder Goyal remains optimistic, citing strong market fundamentals and promising future initiatives.

Key Points: Zomato Profits Plunge 77% as Expenses Surge in Q4

  • Zomato's net profit drops to Rs 39 crore from Rs 175 crore year-on-year
  • Total expenses grow 67% to Rs 6,104 crore
  • Consolidated revenue increases 64% to Rs 5,833 crore
  • Blinkit adds 294 new stores in Q4
2 min read

Zomato's net profit turns stale with 77 pc decline at Rs 39 crore in Q4

Zomato faces significant profit decline despite revenue growth, with expenses rising 67% in Q4 FY25 financial results

"We don't see any long-term structural reason for this slowdown - Deepinder Goyal, Zomato Founder & CEO"

New Delhi, May 1

Eternal Ltd (formerly Zomato) on Thursday reported a massive 77 per cent decline in consolidated net profit at Rs 39 crore in the fourth quarter (Q4 FY25) -- from Rs 175 crore in the year-ago quarter.

On the quarterly basis, the food delivery major Zomato, which owns Blinkit, suffered a net profit loss of 33 per cent -- from Rs 59 crore in October-December period (Q3 FY25).

Total expanses grew 67 per cent (on-year), from Rs 3,636 crore to Rs 6,104 crore. On QoQ basis, the expenses increased over 10 per cent.

The food delivery company's consolidated revenue from operations grew 64 per cent to Rs 5,833 crore, as against Rs 3,562 crore in the corresponding January-March quarter of the previous financial year.

During the quarter under review, Zomato's total income rose to Rs 6,201 crore, against Rs 3,797 in the year-ago period. It's expenses also shot up to Rs 6,104 crore, from Rs 3,636 crore.

Zomato's shares closed at Rs 232.5 apiece on the BSE, up 0.58 per cent.

According to the company’s stock exchange filing, Blinkit has added 294 net new stores in Q4, and is on track to get to 2,000 stores by December 25.

“We don’t see any long-term structural reason for this slowdown, as the fundamentals - low penetration of restaurant food and increasing urbanisation and per capita income in India - remain unchanged,” said Deepinder Goyal, Founder and CEO, Eternal.

“We have a number of promising initiatives in the pipeline - hoping some of them will work and lead to higher growth, without compromising on profitability, he added.

Starting Q4 FY25, the company has started reporting net order value or NOV (in addition to GOV) for its B2C businesses (food delivery, quick commerce and going-out).

“NOV of our B2C businesses grew 53 per cent YoY (5 per cent QoQ) to Rs 17,440 crore in Q4 FY25,” informed the company.

According to Albinder Dhindsa, Founder and CEO, Blinkit, they will continue to focus on improving customer experience with more consistent delivery and fulfillment experience and increase the breadth of product categories that customers can reliably buy from Blinkit.

- IANS

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Reader Comments

R
Rahul K.
Not surprised by these numbers. Zomato's service quality has really gone down while their delivery charges keep increasing. Last week I paid ₹49 delivery fee for a ₹199 order! No wonder profits are falling when they're losing loyal customers. 😒
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Priya M.
Blinkit expansion seems to be their focus now. Quick commerce is the future but they need to balance profitability. The 10-minute delivery promise puts too much pressure on delivery partners. Hope they find sustainable growth without compromising worker welfare.
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Arjun S.
The stock market doesn't seem too worried - shares still up! Investors probably believe in Deepinder Goyal's vision. Indian food delivery market has huge potential as more people move to cities and order online. This might just be a temporary dip.
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Shweta R.
₹6,104 crore expenses?! Where is all this money going? Their ads are everywhere but service quality isn't improving. Swiggy is giving much better offers these days. Zomato needs to focus on core food delivery instead of expanding too fast.
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Vikram J.
Interesting that they're reporting NOV now. Shows they're trying to be more transparent. The 53% YoY growth in B2C NOV is actually impressive despite the profit drop. Maybe the market is willing to forgive short-term losses for long-term growth.
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Neha P.
As a small restaurant owner, Zomato's high commissions (20-30%) are killing our margins. No wonder their revenues are up while restaurants struggle. They need to find a better balance between their profits and supporting local food businesses. #SupportLocal

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