Zomato Q1 results: Profit jumps multifold to Rs 253 cr; revenue soars 74%

Zomato's revenue from operations rose 74 per cent year-on-year (Y-o-Y) to Rs 4,206 crore in Q1, up from Rs 2,416 crore a year ago

Food aggregator Zomato’s net profit in the June quarter of the current financial year (Q1FY25) grew multi-fold to Rs 253 crore, from Rs 2 crore in Q1FY24. On a sequential basis, the firm's net profit grew 44.5 per cent from Rs 175 crore in the preceding quarter.

Zomato’s revenue from operations rose 74 per cent year-on-year (Y-o-Y) to Rs 4,206 crore in Q1FY25. It had reported a revenue of Rs 3,562 in the previous quarter, up 19.2 per cent.

Total expenses for the Gurugram-based food delivery firm increased to Rs 4,203 crore in Q1FY25, up from Rs 3,636 a quarter ago and Rs 2,612 a year ago.

 

As in the past few quarters, growth was being driven by Zomato’s quick commerce business Blinkit. The quick commerce vertical’s gross order value (GOV) and revenue grew at over 22 per cent quarter-on-quarter (Q-o-Q) versus food delivery, which grew at over 10 per cent on both metrics.

The company witnessed a GOV growth of 53 per cent Y-o-Y across its business-to-consumer (B2C) verticals — food delivery, quick commerce and Going-out — at Rs 15,455 crore.

“On the profitability front, consolidated adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) increased by Rs 287 crore Y-o-Y to Rs 299 crore in Q1FY25 driven by margin expansion in all the four businesses,” Akshant Goyal, chief financial officer (CFO), Zomato, said in a letter to shareholders.

Since turning Ebitda positive last year, the company is now at an annualised profit of roughly Rs 1,200 crore.

Food Delivery

Adjusted revenue for its food delivery business increased by over 10 per cent Q-o-Q to Rs 2,256 crore in Q1FY25, up from Rs 2,050 crore a quarter ago, and Rs 1,742 crore in the year-ago period.

The GOV for this business, meanwhile, increased from Rs 8,439 crore in Q4FY24 to Rs 9,264 crore in Q1FY25. On a yearly basis, GOV increased from Rs 7,318 crore in Q1FY24.

“Between FY20 (pre-Covid) and FY24, food delivery GOV has grown at a CAGR of 30 per cent. Given the expected structural demand growth and robust supply side dynamics in India, I don’t see any reason for the industry to not compound at the same rate over the next five years,” said Rakesh Ranjan, chief executive officer (CEO) of Zomato’s food ordering and delivery business.

Going Out

Adjusted revenue for Zomato’s Going Out business reached Rs 95 crore, compared to Rs 93 crore in the previous quarter and Rs 42 crore in the year-ago period. The company’s dining-out business, which helps customers discover restaurants when they want to dine out, is now operating at a run-rate of over $500 million in annualised GOV, and is already profitable.

“We believe that there is an opportunity to further expand our going-out offering, building on top of our dining-out business. Additional use cases for customers in the going-out space include movies, sports ticketing, live performances, shopping, staycations, etc., some of which we have already launched, or are building as we speak,” said Deepinder Goyal, founder and CEO, Zomato.

Blinkit

Blinkit sustained its adjusted Ebitda break-even milestone, which it achieved in March 2024, despite new store openings. Its revenue increased over 22 per cent sequentially to Rs 942 crore, up from Rs 769 crore a quarter ago, while its GOV for the quarter was reported to be Rs 4,923 crore, compared to Rs 4,027 crore in Q4FY24.

“Our average GOV throughout per store has grown from about Rs 6 lakh per day per store when we were at 383 stores exactly a year ago, to about Rs 10 lakh today when we are at 639 stores. For our top 50 stores today, this number is Rs 18 lakh per day per store, and growing,” said Blinkit CEO Albinder Dhindsa.

Hyperpure

Zomato’s business-to-business (B2B) supplies vertical Hyperpure saw its revenue rise 27 per cent Q-o-Q to Rs 1,216 crore in Q1FY25, compared to Rs 951 crore in the previous quarter. The company reported a revenue of Rs 617 crore a year ago.