Zomato Q1 Result: Food Delivery Platform's Net Profit Surges To Rs 253 Crore

Zomato Q1 Result: Adjusted EBITDA for the first quarter grew to Rs 299 crore, up from Rs 194 crore in the previous March quarter, reflecting margin improvements across all four business segments

Zomato Q1: "If we execute this well, we see going out becoming the 3rd large B2C business emerging out of Zomato," Goyal said.

Source : PTI

Zomato Q1 Result: Food delivery platform Zomato announced a beyond-expected rise in quarterly profit, driven by robust demand for its food and grocery delivery services. On Thursday, the company reported a consolidated net profit surged to Rs 253 crore ($30.22 million) for the April-June quarter of the fiscal year 2024-25, up from Rs 2 crore in the same period last year.

The firm posted a 74 per cent year-on-year revenue surge from operations to Rs 4,206 crore in Q1 FY25. The gross order value (GOV) across Zomato's B2C segments—food delivery, quick commerce, and going-out—rose 53 per cent year-on-year to Rs 15,455 crore. Specifically, GOV for food delivery increased 27 per cent, quick commerce jumped 130 per cent, and going-out grew 106 per cent.

Adjusted EBITDA for the first quarter grew to Rs 299 crore, up from Rs 194 crore in the previous March quarter, reflecting margin improvements across all four business segments. In addition, Zomato’s stock price has surged 174 per cent over the past year.

"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," said Deepinder Goyal, CEO of Zomato.

"If we execute this well, we see going out becoming the 3rd large B2C business emerging out of Zomato," he added.

Zomato-owned, quick commerce (Blinkit) saw a 130 per cent year-on-year increase in GOV. The company plans to expand to 1,000 Blinkit stores by March 2025, aiming to reach 2,000 stores by the end of 2026, all while maintaining profitability. Most of these new stores will be established in the top 10 cities.

"GOV throughput per store of our existing network 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," the company said. 

"Over the last six quarters, we have launched and scaled products in electronics, beauty and make-up, pet care, and children’s toys, and we will continue to invest behind opportunities in newer categories as well. We are now able to offer up to 25,000 unique SKUs (stock-keeping units) to our customers in some locations," said Albinder Dhindsa, Founder and CEO of Blinkit.