Here is how earnings of new age companies like Zomato, Paytm, Nykaa, Ola electric fared in Q1FY25

New-age stocks symbolise the disruptive force of innovation. These companies, pioneering in sectors like fintech, e-commerce, and digital maps, captivate investors with their potential for exponential growth. Their market dominance, technological prowess, and leadership often overshadow immediate profitability, making them a high-stakes bet for those seeking substantial returns.

Top new ages stocks and their performance review post Q1 earnings

Zomato Ltd - India’s leading food delivery aggregator reported a massive Q1FY25 net profit growth of 126.5 times, reaching ₹253 crore from ₹2 crore a year ago. Revenue surged 74% YoY to ₹4,206 crore, and EBITDA turned positive at ₹177 crore (4.2% margin) compared to a loss of ₹48 crore last year.

Key highlights include gaining market share in Southern India, a 53% rise in Gross Order Value (GOV) to ₹15,455 crore, and Blinkit exceeding store addition targets despite an adjusted EBITDA loss of ₹3 crore.

Zomato's growth potential and improving profitability underscore a strong business model.On a YTD basis share price has surged 111% this year, on the back of strong growth in the business dynamics and earnings.

Delhivery Ltd - The fully integrated logistic service provider reported Q1FY25 revenue growth of 13% YoY to ₹2,172 crore, with EBITDA increasing to ₹97 crore from a loss of ₹13 crore. Profit after tax stood at ₹54 crore versus a loss of ₹89 crore a year ago.

Robust growth in PTL and SCS businesses and stable growth in Express Parcel continue and have enabled improvement in profitability.

Express Parcel shipments grew 4% sequentially to 183 million in Q1 FY25, Part Truckload revenues grew 25% YoY to ₹435 crore in Q1 FY25, and Supply Chain Services also showed robust growth in Q1 FY25. Revenue from SCS stood at ₹259 crore, growing 11% sequentially.

But challenges remain due to Meesho’s shift to in-house logistics expected to impact shipping volumes coupled with management issues.On a YTD basis share price is up 12.6% this year, highlighting lack-luster performance.

Paytm (One 97 Communication Ltd) - India’s leading mobile payment and financial service distribution company’s Q1FY25 revenue dropped 36% YoY to ₹1,502 crore, and net loss widened by 135% to ₹840 crore.

Payment services revenue was ₹900 crore with the merchant subscriber base for devices reaching 1.09 crore as of June 2024. Further it, Continued focus on cost reduction with employee cost declined by 9% QoQ. The balance sheet remained strong with ₹8,108 crore of cash on books.

Despite efforts to reduce costs, expand merchants' base and a strong cash position, regulatory risks from the RBI pose a potential challenge to Paytm’s recovery. On a YTD basis share price is down 11.5% this year as the company faced several regulatory actions.

Nykaa (FSN E-Commerce Ventures Ltd): The beauty and personal care brand Nyaka led by Falguni Nayar reported Q1FY25 revenue rose 22.8% YoY to ₹1,746 crore, EBITDA increased by 30% to ₹96 crore, and net profit jumped 151.7% to ₹13.64 crore.

Nykaa plans to increase its stake in two of its owned brands—Dot & Key and Earth Rhythm—for a cash consideration of around ₹300 crore.

Future growth is expected in revenue, but margins may dip slightly due to increased marketing and GCC-related spending.On a YTD basis share price has gained 11.6% this year.

Mama Earth (Honasa Consumer Ltd): The personal care brand’s Q1FY25 revenue grew 19.3% YoY to ₹554 crore, with the EBITDA margin expanding to 8.3%. PAT increased by 62.9% YoY to ₹40 crore.

Mama Earth continues to gain market share in key categories, driven by innovation and an expanding retail footprint. Product Business grew by 20.3% on the back of Underlying Volume Growth (UVG) of 25.2% in Q1FY25, signifying increasing consumer demand. The company reached nearly 2 lakh FMCG retail outlets in India as of June 24, increasing distribution up by 30% YoY.

On a YTD basis share price has soared 10% this year.

Ola Electric: India’s leading electric vehicle (EV) manufacturer company’s Q1FY25 revenue grew 34.3% YoY to ₹1,718 crore, but net loss widened by 30% to ₹347 crore.

Ola’s automotive segment (E2W) improved its EBITDA margin to (1.97)%, nearing breakeven. With the highest-ever vehicle deliveries (1,25,198 units) and upcoming electric motorcycle launches, It also Registers its highest-ever quarterly revenue of ₹1,718 crore in Q1 FY25 with 48.63% market share.

Ola is positioned for long-term profitability, supported by regulatory backing and vertical integration, though challenges remain in scaling and battery ventures.

Ola Electric is the only automaker in India which has received approval for PLI schemes for both advanced automotive technology and cell chemistry batteries.

Conclusion

Q1 results for new-age tech stocks offer a mixed picture. While some companies shine, others struggle. The sector's long-term potential remains, but investors must approach with caution and understand the company's business model, financial health, and valuation.