Zomato Reports 68.5% Quarter-on-Quarter Growth

Zomato, a leader in food tech and quick commerce, reported an impressive 68.5 per cent quarter-on-quarter growth in its operating revenue, reaching Rs 4,799 crore for Q2 FY25, up from Rs 2,848 crore in Q2 FY24. This surge was driven by robust performance in its core food delivery business, the business-to-business (B2B) Hyperpure vertical, and Blinkit.

The company’s board has approved a plan to raise Rs 8,500 crore through qualified institutional investors, coinciding with rival Swiggy’s upcoming initial public offering.

Zomato's food delivery segment remains a key contributor, making up 42 per cent of total revenue. This vertical grew by 30 per cent,  generating Rs 2,012 crore, up from Rs 1,546 crore in Q2 FY24. The growth was fueled by increased order volumes, higher average order values, and expansion into new cities.

Blinkit saw outstanding growth, with revenues skyrocketing 129 per cent to Rs 1,156 crore in Q2 FY25 from Rs 504 crore in Q2 FY24. The gross order value (GOV) increase was driven by more frequent orders and the addition of new stores, significantly boosting overall revenue.

Zomato's Hyperpure business, which provides restaurant supplies, also performed well, with revenues climbing 97 per cent to Rs 1,473 crore, up from Rs 747 crore in Q2 FY24. This segment continues to be a crucial growth driver as more restaurants utilise its services.

In addition to these core segments, Zomato generated non-operating income from various activities, contributing to the total revenue of Rs 4,799 crore in Q2 FY25.

Despite strong growth, Zomato faced rising expenses. Delivery and related costs surged 97.9 per cent to Rs 1,334 crore, accounting for 29.2 per cent of total expenditure. Overall, expenses rose to Rs 4,783 crore, compared to Rs 3,039 crore in Q2 FY24, driven by increased spending on procurement, marketing, and employee benefits. Employee costs totaled Rs 709 crore, marking an 11.2 per cent decline from the previous quarter due to lower ESOP costs.

Zomato also achieved significant profitability, with net profits increasing 4.8 times to Rs 176 crore, up from Rs 36 crore in Q2 FY24.  At the end of the quarter, Zomato reported a cash balance of Rs 10,800 crore, indicating strong liquidity. However, the company’s stock dipped to Rs 256.55 as of October 22, 2024, with a market capitalisation of ₹2,26,645 crore (approximately USD 27 billion).