Zomato Stocks Plunge Nearly 10 Per Cent, See Why The Food Delivery Firm's Share Price Is Falling

At 10:30 AM, the firm’s shares traded at Rs 216.90 apiece on the BSE and Rs 216.60 per share on the NSE, logging a decline of 9.98 per cent and 9.66 per cent respectively.

This slump followed the company declaring a 57.2 per cent plunge in its net profit in the October-December quarter in 2024-25 fiscal year (FY25) on Monday to Rs 59 crore, against Rs 138 crore reported in the same quarter a year earlier.

Source : PTI

The shares of online food delivery and quick commerce major, Zomato, took a major beating in the stock market on Tuesday. The company’s shares declined close to 10 per cent in the morning market hours following disappointing results declared for the third quarter on Monday.

Around 9:50 AM, Zomato’s shares traded at Rs 221.20 on the BSE, clocking a fall of more than 8 per cent. However, as the session progressed, the company’s shares continued to plunge in the market.

At 10:30 AM, the firm’s shares traded at Rs 216.90 apiece on the BSE and Rs 216.60 per share on the NSE, logging a decline of 9.98 per cent and 9.66 per cent respectively.

Why Zomato's Share Price Is Falling?

This slump followed the company declaring a 57.2 per cent plunge in its net profit in the October-December quarter in 2024-25 fiscal year (FY25) on Monday to Rs 59 crore, against Rs 138 crore reported in the same quarter a year earlier.

Sharing the results for Q3FY25, the firm said that its margins felt the impact of rapid store expansion as it tried to accommodate orders from its quick-commerce wing, Blinkit.

However, the firm also reported a massive surge in its revenue during the reviewing quarter. Zomato’s revenue for the December quarter stood at Rs 5,405 crore, climbing 65 per cent from Rs 3,288 crore clocked in the corresponding quarter in the preceding fiscal year.

Sequentially, the company logged a jump of 12.6 per cent in Q3, against Rs 4,799 crore recorded in the previous quarter.

The company clocked a 128 per cent surge in its consolidated Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) to Rs 285 crore in the quarter under review on a year-on-year (YoY) basis. Segment-wise, Zomato saw the food ordering and delivery segment log a 21.6 per cent jump in its revenue to Rs 2,072 crore in Q3FY25, against Rs 1,704 crore logged in the corresponding period a year earlier.