Zomato Q3 FY25 Results: Net Profit Declines 57%, Blinkit Expansion Impacts Financials
Zomato Q3 FY25 Results: Net Profit Declines 57%, Blinkit Expansion Impacts Financials, Zomato, the food delivery and quick commerce giant, reported its third-quarter results for FY25, revealing a sharp decline in net profit and a significant impact from its Blinkit expansion. The company’s stock plunged by 7% following the announcement.
Net Profit Decline
Zomato’s net profit after tax (PAT) for Q3 FY25 stood at Rs 59 crore, marking a 57% year-on-year (YoY) decrease from Rs 138 crore in the same period the previous year. The company also witnessed a 66% sequential decline from Rs 176 crore in Q2 FY25.
Revenue Growth
Zomato reported a 64% increase in revenue from operations, rising to Rs 5,404 crore in Q3 FY25, up from Rs 3,288 crore in the same period last year. This was also a 13% growth from Rs 4,799 crore in Q2 FY25.
Adjusted EBITDA Growth
Despite the profit drop, Zomato’s consolidated adjusted EBITDA grew 128% YoY to Rs 285 crore. The improvement was driven by the growth in its food delivery business. However, its margins faced sequential pressure due to heavy investments in Blinkit’s quick commerce expansion.
Blinkit’s Losses and Expansion
Blinkit, Zomato’s quick commerce arm, reported an adjusted EBITDA loss of Rs 103 crore in Q3 FY25, a 16% YoY increase from Rs 89 crore. Sequentially, the loss grew substantially from Rs 8 crore in Q2 FY25. Revenue for Blinkit soared by 117% YoY, reaching Rs 1,399 crore, up from Rs 644 crore in Q3 FY24. Despite the revenue boost, Blinkit’s losses were primarily attributed to accelerated investments in its growth.
Food Delivery Performance
Zomato’s food delivery business saw an increase in adjusted revenue to Rs 2,413 crore in Q3, up from Rs 2,062 crore YoY and Rs 2,340 crore QoQ. The gross order value (GOV) for the segment grew slightly, reaching Rs 9,913 crore in Q3, up from Rs 8,486 crore in Q3 FY24. However, the demand slowdown, which began in November 2024, impacted the growth. Zomato remains optimistic about a recovery, projecting over 20% yearly GOV growth in the long term.
Adjusted EBITDA margin for the food delivery business improved sequentially from 3.5% to 4.3%, driven by higher platform fees and cost efficiencies. The number of average monthly transacting customers (MTCs) for food delivery declined marginally to 20.5 million, compared to 20.7 million in Q2 FY25.
Blinkit Store Expansion and Growth
Blinkit’s dark store count nearly doubled from 451 in Q3 FY24 to 1,007 in Q3 FY25. Its monthly transacting users increased significantly from 5.4 million last year to 10.6 million in the current quarter. The company is on track to reach 2,000 stores by December 2025, well ahead of its previous guidance of December 2026.
Going Out Business Sees Massive Growth
Zomato’s Going Out business, which includes the District app and dining-out services, saw an impressive 254% YoY growth in revenue, reaching Rs 259 crore in Q3 FY25. GOV for the segment rose to Rs 2,495 crore, up from Rs 858 crore in Q3 FY24. Despite ongoing losses due to investments in the District app, the business remains optimistic about future growth, projecting a 40% YoY increase over the next few years.
Hyperpure Sees Strong Performance
Zomato’s business-to-business (B2B) supply vertical, Hyperpure, reported robust growth with a 95% YoY increase in revenue to Rs 1,671 crore in Q3 FY25. This was up from Rs 859 crore in Q3 FY24, continuing its upward trajectory.
Future Outlook
Zomato’s management remains positive about the long-term outlook for its food delivery and other businesses. The company is optimistic about a recovery in demand and sustained growth in its various verticals. Despite the challenges faced in the quick commerce space, Zomato expects to maintain its strong fundamentals, particularly in food delivery and its expanding B2B and going-out businesses.