Zomato earnings: Zomato , the country’s leading food delivery giant, on Tuesday reported net profit of Rs 176 crore in second quarter of current financial year, marking an increase of nearly five times or 389 per cent from Rs 36 crore during the same period last year. On a sequential basis its net profit however fell 30 per cent from Rs 253 crore. The results, however, fell short of expectation as analysts polled by LSEG were expecting it to report net profit of Rs 270 crore.
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The company’s board also approved raising up to Rs 8,500 crore via the issue of shares in a qualified institutional placement.
Competition in online food and grocery delivery sector remains tight, with rival Swiggy recently filing papers for an initial public offering, while reports suggest that Zepto is eyeing a stock market debut next year.
To combat rising competition, Blinkit has been adding more stores to its network, which has hit Zomato ‘s profitability, analysts at Elara Capital said.
Zomato is looking to increase its store count to 2,000 by the end of 2026.
The company’s revenue rose nearly 69 per cent to Rs 4,799 crore, slightly ahead of analysts’ estimates of Rs 4,730 crore, per data complied by LSEG.
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“Gross order value (GOV) growth across our B2C businesses improved to 55 per cent YoY (14 per cent QoQ) at Rs 17,670 crore in Q2FY25. On a like-for-like basis (excluding the impact of the acquisition of Paytm’s entertainment ticketing business) GOV growth was 53% YoY (13% QoQ),” the company said in an exchange filing.
Zomato shares ended 3.58 per cent lower at Rs 256.20 ahead of its earnings announcement.
