Zomato has released its Q3 FY25 results, showing strong revenue growth despite challenges in its core food delivery business. The company emphasized operational resilience and strategic investments in quick commerce and going-out segments.

Key Highlights:

  • Gross Order Value (GOV): Food delivery GOV grew 17% YoY but only 2% QoQ, attributed to a broad-based demand slowdown.
  • Revenue from Operations: Rs 5,405 crore, up 64.4% YoY from Rs 3,288 crore in Q3 FY24.
  • Net Profit: Rs 59 crore, a 57.2% decline YoY from Rs 138 crore in Q3 FY24.
  • Consolidated Adjusted EBITDA: Rs 285 crore, up 128% YoY but down 14% QoQ.
  • Quick Commerce Growth: GOV rose 120% YoY and 27% QoQ, driven by accelerated store expansion.
  • Going-Out GOV: Registered 191% YoY growth and 35% QoQ, boosted by the acquired entertainment ticketing business.
  • Hyperpure Revenue: Increased by 95% YoY and 13% QoQ.

Segment-wise Results:

  1. India Food Ordering and Delivery:
    • Revenue: Rs 2,072 crore in Q3 FY25, up from Rs 1,704 crore in Q3 FY24.
    • Adjusted EBITDA margin: Improved to 4.3% from 3.0% YoY.
  2. Quick Commerce:
    • Revenue: Rs 1,399 crore, up from Rs 644 crore YoY.
    • Losses: Rs 103 crore in Q3 due to accelerated investments.
  3. Hyperpure (B2B Supplies):
    • Revenue: Rs 1,671 crore, a 95% YoY growth.
  4. Going-Out Segment:
    • Revenue: Rs 259 crore, up from Rs 73 crore YoY.

Investor Commentary:

  • The company highlighted challenges in demand, especially in food delivery, while reaffirming long-term growth potential.
  • Investments in quick commerce infrastructure, such as store and warehouse expansions, are expected to yield future profitability.

Guidance:

Zomato expects GOV growth to remain above 100% for FY25 and FY26, while near-term profitability may be affected by ongoing investments and competition.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your research or consult a financial advisor before making investment decisions.

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TOPICS: Zomato