Zomato Q2 results preview: Net profit could see a multifold jump driven by food delivery and Blinkit business

The online food delivery company will report its quarterly financial results for the July-September quarter (Q2FY25) on Tuesday, October 22.

Experts believe the company will report strong profit and revenue numbers for Q2FY25, driven by growth in the food delivery business. Revenue growth in its business arms, Hyperpure and Blinkit, could also help the company post strong Q2 numbers.

Zomato Q2 revenue and net profit to see robust growth

According to experts, Zomato’s revenue is expected to increase by 65% to 80% year-on-year in the September quarter. Revenue could range between ₹4,644 to ₹5,111.1 crore, compared to ₹2,848 crore in the year-ago period.

Revenue is expected to rise sequentially by 10% to 15% compared to the June quarter of FY25. Experts have pegged the growth of over 700% in profit after tax (PAT) to range between ₹290 to ₹350 crore in the September quarter compared to ₹36 crore in July-September 2023.

On a quarter-on-quarter, PAT is expected to rise 15 to 22% against ₹253 crore in the April-June quarter.

Food delivery, Blinkit to drive revenue growth

According to market observers, the gross order value (GOV) of Zomato’s food delivery business could rise by 20 to 23% YoY and 5 to 6% QoQ. Its grocery delivery arm Blinkit’s GOV is expected to increase 114.1% Y-o-Y and 20.1 % QoQ.

Revenue from the food delivery business is expected to rise by 23 to 37% YoY. Restaurant supply chain arm Hyperpure’s revenue may rise by 74% YoY, and Blinkit is expected to register 114% to 124% YoY growth.

Zomato defines gross order value as the combined GOV of consumer-facing businesses such as food delivery, quick-commerce, and going-out.

Zomato Ebitda margins may improve in Q2

Experts predict that Zomato will likely report an EBITDA in the range of ₹230 to ₹265 crore, compared to a loss of ₹47 crore in the September quarter of FY23. Meanwhile, EBITDA margins are also likely to improve, led by the food delivery business.

During the Q2 result announcement, investors will watch out for management commentary and guidance for the Zomato or Blinkit business and the ‘District’ scale-up strategy.

In addition to financial numbers, investors will watch out for any change in guidance from Zomato or Blinkit and the ‘District’ scale-up strategy.

Along with the Q2 results, the food delivery aggregator's board is planning to consider fundraising through qualified institutions placement (QIP) on October 22. However, the company did not disclose the quantum of funding it is looking to raise.

Zomato posted 74% growth in revenue in Q1FY25

Zomato reported a 74% YoY growth in consolidated revenue to ₹4,206 crore (18% QoQ). During the quarter, Zomato's gross order value (GOV) increased by 53% to ₹15,455 crore.

Net profit during the first quarter stood at ₹253 crore compared to the ₹2 crore reported in Q1FY24. Food delivery GOV grew by 27% YoY, Quick commerce GOV grew 130% YoY, and Going-out GOV grew 106% YoY in the first quarter.

Its B2B business division Hyperpure’s revenue grew 96% YoY with improving profitability.

Zomato shares rally ahead of Q2 results

Ahead of Q2 result annoucement, Zomato gained up to 3.7% to hit an intraday high of ₹267 apiece on the NSE in morning trade on Monday.

The stock hit a low of ₹254.5 per share on NSE in morning deals, but later recovered to trade in the green. The stock closed at ₹265.1 apiece, up 2.99%.