Zomato vs Swiggy Q3 Results: Here is how companies fared on key parameters; share price trend

JM Financial, in its report dated February 17, 2025, said that in Q3 FY25, NIFTY50 earnings per share (EPS) grew 8.9% YoY (v/s expectation of 5.8% YoY) driven by financials, up 15% YoY.

Excluding financials, EPS grew 4.3% YoY (v/s expectation of 2.1% YoY). Sectors that saw the highest YoY EPS growth were Industrials (+47% YoY), Metals & Mining (+30% YoY), and Telecom (+26% YoY). On the other hand, sectors that saw the weakest YoY EPS performance were Cement (-42% YoY), Utilities (-13% YoY), and Retail (-5% YoY).

EPS is calculated by dividing a company's net profit by the number of outstanding shares of the company.

Further, the research report notes that in terms of market capitalisation, 50% of small-cap companies missed expectations. Meanwhile, the misses were lower in midcaps and large caps at 34% and 28%, respectively.

Zomato Q3 FY25 Earnings

Its revenue from operations came in at ₹5,405 crore, up 64.3% against ₹3,288 crore registered in the December 2023 quarter.

Total income came in at ₹5,657 crore, up 61.3% from ₹3,507 crore logged in the corresponding quarter of the previous fiscal.

Zomato's total expenses for the quarter stood at ₹5,533 crore, up 63.5% against ₹3,383 crore logged in the December 2023 quarter.

Basic and diluted earnings per share (EPS) for the quarter under review came in at ₹0.07 and ₹0.06, respectively, against ₹0.16 and ₹0.16 in the year-ago period.

The company added that the gross order value (GOV) of its B2C businesses grew 57% YoY (14% QoQ) to ₹20,206 crore in Q3FY25. On a like-for-like basis (excluding the impact of the acquisition of Paytm’s entertainment ticketing business), GOV growth was 52% YoY (12% QoQ).

• Food delivery GOV grew 17% YoY (2% QoQ);

• Quick commerce GOV grew 120% YoY (27% QoQ); and

• Going out GOV grew 191% YoY (35% QoQ); like-for-like (excluding Paytm’s entertainment ticketing, the business acquired in Aug '24), GOV grew 119% YoY (15% QoQ).

"Our B2B business Hyperpure’s revenue grew 95% YoY (13% QoQ)," the company said.

Consolidated adjusted revenue grew 58% YoY (12% QoQ) to ₹5,746 crore, broadly in line with GOV growth.

Gross order value (GOV) is the total amount a customer pays for an order placed by them. It includes taxes, delivery charges, and the value of the goods.

On the profitability front, consolidated adjusted EBITDA grew 128% YoY to ₹285 crore in Q3FY25, largely driven by improvement in food delivery. Adjusted EBITDA margin (as a percentage of GOV) to 4.3% compared to 3% a year ago.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) is a measure to assess a company's profitability and financial performance.

However, on a QoQ basis, consolidated adjusted EBITDA declined by 14% (or ₹45 crore) despite the improvement in food delivery margins, largely due to accelerated investments in expanding the company's quick commerce store network, where quarterly losses increased by ₹95 crore QoQ, Zomato said in its Q3 results statement.

Zomato further said that its quick commerce business (Blinkit) incurred a loss of ₹103 crore during the quarter on account of pulling forward the growth investments in the business that it would have otherwise made in a staggered manner over the next few quarters.

"As of now, it seems like we will get to our target of 2,000 stores by December 2025, much earlier than our previous guidance of December 2026," Zomato added.

Zomato on rising competition

The company said that the biggest impact of the intensifying competition has been the acceleration in customer awareness and adoption of quick commerce.

Zomato added that heightened competition has led to a pause in margin expansion in the business, which is expected and should be temporary. So far, we have not seen any attrition of our core customers which tells us that customers are continuing to choose Blinkit over other options.

As regards the food delivery business, the company said that muted 2% QoQ (17% YoY) GOV growth in food delivery during the December quarter was driven by a broad-based demand slowdown. However, there was a sharp rise in adjusted EBITDA margins from 3.5% in Q2FY25 to 4.3% in Q3FY25.

Zomato also launched the all-new District and Bistro mobile apps.

Swiggy Q3 FY25 earnings

The Sriharsha Majety-led food delivery company reported a consolidated loss of ₹799.08 crore for the quarter under review. It had incurred a net loss of ₹574.38 crore in the year-ago period.

Total expenses surged to ₹4,898.27 crore from ₹3,700 crore in October-December FY24. Revenue from operations increased to ₹3,993.06 crore from ₹3,048.69 crore.

Its basic and diluted EPS stood at -₹3.48 against -₹2.61 in the year-ago period.

Further, Swiggy's overall gross order value (GOV) grew 38% year-on-year (YoY) to ₹12,165 crore, while the consolidated adjusted EBITDA loss reduced by nearly 2% YoY to ₹490 crore but rose ₹149 crore QoQ. The platform’s Average Monthly Transacting Users (MTU) increased 25.3% YoY to reach 17.8 million, with nearly a third of all users utilizing more than one service on the platform.

The company's food delivery business GOV grew 19.2% YoY to ₹7,436 crore. Adjusted EBITDA grew 63.7% QoQ to ₹184 crore, delivering a 2.5% margin, up from 0.3% a year ago.

Swiggy's quick commerce business, Swiggy Instamart, reported an 88% YoY (15.5% QoQ) rise in GOV to ₹3,907 crore. Average order value increased by 14% YoY to ₹534, driven by greater selection and increased consumer salience, Swiggy said.

Instamart added 96 new active stores during the quarter (up 16% QoQ), driving up the active dark store area to 2.45 million square feet, an increase of 25% QoQ.

"Growth investments in quick commerce led to a reduction in contribution margin from -1.9% in Q2FY25 to -4.6% in Q3FY25, as the company ramped up user activation and dark store expansion across geographies," Swiggy added.

Zomato and Swiggy's share price trend

Shares of Zomato are currently trading around 28% lower from their all-time high level of ₹304.50 touched on December 5, 2024. Swiggy shares, on the other hand, are trading 44% lower from their record high level of ₹617, hit on December 23, 2024.