Zomato Q1 results: Net profit surges multifold to ₹253 crore, here's five key takeaways from June quarter

The robust growth in net profit and revenue for Q1FY25 was driven by the healthy increase in all business segments, especially the quick commerce arm Blinkit.

Here are 5 key takeaways from the stellar Q1FY25 results of Zomato Ltd.

Robust growth in net profit, revenue and EBITDA

In Q1 FY25, Zomato Limited reported a multifold rise in net profit at ₹253 crore, up 12,550% compared to ₹2 crore in Q1 FY24. In the June quarter of FY25, the company’s profit after tax (PAT) also grew by over 44% quarter-on-quarter from ₹175 crore in Q4 FY24.

The company’s revenue from operations grew 74% to ₹4,206 crore in the June quarter of FY25 compared to ₹2,416 crore in the year-ago period. Sequentially, the food delivery company’s revenue from operations also surged 18% from ₹3,562 crore in Q4FY24.

Zomato also posted an increase of over 2,391% in its adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) at ₹299 crore for Q1FY25 against ₹12 crore in Q1FY24. The company’s adjusted EBITDA also increased on a quarter-on-quarter basis by 54% from ₹194 crore in Q4FY24.

Strong growth in Blinkit business

In Q1FY25, the company’s quick commerce vertical, Blinkit, reported revenue growth of 145% to ₹942 crore, compared to ₹384 crore in Q1FY24. Blinkit’s adjusted revenue increased by over 22% from ₹769 crore in Q4FY24.

Commenting on the increasing competition in the segment, Albinder Dhindsa, the CEO of Blinkit, said that while other players are providing subsidies and spending on marketing, the company has focused on a different strategy.

“Our customers, who value quality of service and reliability, seem to be unaffected and that reflects in our performance of the quarter, where we have grown 20%+ without the need to match the spends or subsidies of our competitors,” Dhindsa said.

He added that the company has been focused on increasing the selection for our customers and offering it to them in the most efficient way. He claimed that the average selection available to customers in any neighbourhood has increased between 4-5 times over the last eight quarters.

Dhindsa also said that Blinkit now offers up to 25,000 unique Stock Keeping Units (SKUs) to its customers in some locations.

Gross Order Value (GOV) growth

In Q1FY25, the company witnessed a growth in its Gross Order Value (GOV) across businesses (food delivery, quick commerce and Going-out). The GOV surged to ₹15,455 crore, registering a growth of 53% YoY and 14% QoQ. Zomato’s food delivery GOV increased 27% on a YoY basis and 10% QoQ.

The company’s quick commerce arm’s GOV increased 130% year over year, while the going-out segment registered a 106% year over year growth.

Business Growth

Commenting on the company’s growth plans, Dhindsa said that he sees a line of sight of getting to about 2,000 stores for the company’s current quick commerce business. Dhindsa added that most of these stores will be in the top 10 cities across India. He added that the company plans to achieve the 2,000-store milestone by the end of 2026 while remaining profitable.

Deepinder Goyal, the CEO of Zomato said that while Zomato and Blinkit are two large consumer businesses of the company, the company also plans to cater to the ‘dining-out’ needs of its customers. Talking about the business growth outlook, Goyal said that while the business is profitable, there’s an opportunity to expand it by increasing the company’s ‘going out offerings’ such as movies, sports ticketing, live performances, shopping and staycations.

“Today, Zomato and Blinkit are our two large consumer businesses and both of them serve customers' needs at home. However, we also have one of India’s largest ‘going-out’ businesses. Our dining-out business which helps our customers discover restaurants when they want to go out and dine at restaurants. This dining-out business is now operating at a run-rate of $500m+ annualised GOV and is already profitable,” Goyal said.

Zomato share price

Shares of Zomato Ltd rallied as much as 3.72% to hit a record high of ₹238 apiece on the NSE after the company announced robust growth in net profit and revenue in Q1FY25. The stock closed 3.68% higher at ₹237.9 apiece.

As the results were announced just before the closing session, Zomato shares will be in focus on Friday, August 2, for any possible impact of the company’s Q1 results.