Zomato Q1 results: Net profit up at Rs 253 crore as Blinkit serves growth

Zomato reported a bigger-than-expected increase in quarterly profit on Thursday, boosted by strong demand for its food and grocery delivery services.

The company's consolidated net profit rose to Rs 253 crore ($30.22 million) in the April-June quarter from Rs 2 crore a year earlier.

Analysts, on average, had expected a profit of Rs 215 crore, according to LSEG data.

Quick commerce companies such as Zomato's Blinkit, the Tata group-owned BigBasket and IPO-bound Swiggy's Instamart are seeing steady demand for home deliveries for a wide variety of products in urban areas.

The intense heat during the summer, which extended into June, also boosted demand for home deliveries, aiding both Zomato's eponymous food delivery business and Blinkit orders.

Zomato's revenue surged 74 per cent to Rs 4,206 crore in the quarter, beating analysts' estimates of Rs 3,928 crore, per LSEG data.

The company's stock rose 2.5 per cent after the results, taking year-to-date gains to about 87 per cent.