Zomato’s Net Profit Soars 389% YoY in Q2, Sets Stage for ₹8,500 Crore Fundraising as Blinkit Boosts Growth
Zomato reports a 389% YoY profit jump in Q2FY25, reaching ₹176 crore, while approving a ₹8,500 crore fundraising plan via QIP. Blinkit drives strong growth in quick commerce, despite EBITDA losses narrowing.
Zomato Ltd, a leading online food delivery platform, reported a remarkable 389% year-on-year (YoY) increase in its consolidated net profit for Q2FY25. The net profit for the July-September quarter reached ₹176 crore, compared to ₹36 crore in the same period last year. However, on a quarter-on-quarter basis, the profit saw a 30.43% drop from ₹253 crore in Q1FY25, due to a reduction in cash balance following the acquisition of Paytm's ticketing business.
Revenue Growth
Zomato's revenue from operations for Q2FY25 stood at ₹4,799 crore, a 68.5% increase from ₹2,848 crore in the same quarter last year. The total income rose to ₹5,020 crore, marking a 64% YoY growth compared to ₹3,060 crore in Q2FY24.
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The company's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a substantial increase, reaching ₹331 crore, up from ₹41 crore in the same period last year. Zomato attributed this improvement to better margins in its core food delivery business and continued growth in its quick commerce segment.
Gross Order Value (GOV) and Blinkit
Zomato reported a 55% YoY growth in Gross Order Value (GOV) across its business-to-consumer (B2C) segments, amounting to ₹17,670 crore, a 14% QoQ rise. Excluding the acquisition of Paytm’s entertainment ticketing business, the growth was still impressive at 53% YoY.
Blinkit, Zomato's quick commerce service, recorded an extraordinary 129% YoY increase in revenues, reaching ₹1,156 crore. The GOV for Blinkit surged by 122% YoY to ₹6,132 crore. Despite the strong growth, the adjusted EBITDA for Blinkit remained negative at ₹-8 crore, though the losses have significantly reduced from ₹124 crore a year ago.
Cash Balance and Fundraising Plan
Zomato's cash balance decreased by ₹1,726 crore during the quarter, primarily due to the ₹2,014 crore acquisition of Paytm’s entertainment ticketing businesses. To strengthen its financial position amid increasing competition, Zomato's board approved raising ₹8,500 crore through a Qualified Institutional Placement (QIP).
The company emphasized the need for a strong cash reserve given the competitive landscape and the growing scale of its operations. This move is intended to ensure financial flexibility as the business continues to expand.
District App Launch
Zomato CEO Deepinder Goyal announced that the company’s District app, which integrates services from Zomato and Paytm’s platforms, will be launched within the next four weeks. Goyal stated that ensuring a smooth transition for users from the existing platforms to District is the company’s top priority.
This quarter's results reflect Zomato's growing presence in the food delivery and quick commerce sectors, as well as its strategic investments to stay competitive in the evolving market.
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