Zomato, the online food aggregator led by Deepinder Goyal, announced a remarkable surge in net profit, soaring over 126% to Rs 253 crore for the April-June quarter (Q1 FY25). This represents a significant leap from the Rs 2 crore net profit reported in the same period last year. Additionally, the company saw its revenue climb 74% year-on-year, reaching Rs 4,206 crore in Q1 FY25.
The company's stock has experienced a substantial increase, rising 174% over the past year.
Zomato highlighted that its profitability continues to improve, with adjusted EBITDA increasing to Rs 299 crore from Rs 194 crore in the prior quarter. This growth is attributed to margin expansions across all four of its business segments.
The dining-out segment has achieved an annualized gross order value (GOV) run-rate of $500 million and is already turning a profit. Goyal expressed enthusiasm about expanding their going-out offerings, which include services like movie bookings, sports tickets, live performances, shopping, and staycations. Some of these features are already available.
"If executed effectively, we foresee the going-out sector becoming Zomato's third major B2C business," Goyal stated.
The growth in GOV for Zomato’s B2C sectors, which encompass food delivery, quick commerce, and going-out services, surged 53% to Rs 15,455 crore.
Quick commerce, represented by Blinkit, experienced a significant 130% year-on-year GOV increase. Zomato plans to expand Blinkit to 1,000 stores by March 2025 and aims to double this number to 2,000 by the end of 2026 while maintaining profitability. The majority of new stores will be located in the top 10 cities.
The GOV per store has increased substantially, from approximately Rs 6 lakh daily per store when there were 383 stores a year ago, to Rs 10 lakh today with 639 stores. For the top 50 stores, this figure is Rs 18 lakh per day.
Blinkit CEO Albinder Dhindsa noted, “In the past six quarters, we have introduced and scaled products across various categories, including electronics, beauty and makeup, pet care, and children's toys. We will continue to explore new categories and expand our offerings.” He added that some locations now provide up to 25,000 unique SKUs to customers.
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