Eternal Ltd, formerly known as Zomato, reported a steep 77.7% decline in net profit for the fourth quarter of FY25, falling to ₹39 crore from ₹175 crore in Q4 FY24. The company’s revenue from operations, however, jumped 63.8% YoY to ₹5,833 crore, with total income at ₹6,201 crore, up 63.3%. Total expenses surged 67.9% to ₹6,104 crore, leading to a 39.8% drop in profit before tax at ₹97 crore.
A key contributor to the fall in profits was the growing losses in the quick commerce segment, where adjusted EBITDA came in at -₹178 crore, worsening from -₹37 crore a year ago. While Blinkit, Zomato’s quick commerce arm, posted 134% YoY growth in GOV and 122% YoY growth in revenue, the aggressive store expansion (294 net new stores) exerted pressure on profitability.
Food delivery, Zomato’s traditional core, grew moderately. Gross Order Value (GOV) rose 16% YoY while Net Order Value (NOV) grew 14%, both below earlier guidance of 20% growth. Zomato CEO Deepinder Goyal attributed this slowdown to sluggish discretionary demand, temporary delivery partner shortages due to quick commerce demand, and rising competition from instant packaged food delivery apps like Swiggy Bolt and Zepto Café.
The company also delisted around 19,000 restaurants in Q4 over hygiene and authenticity concerns, further impacting order volumes. Additionally, Q4 FY25 had one less day compared to the leap year base of Q4 FY24.
Goyal confirmed that Zomato is shutting down experimental projects like ‘Zomato Quick’ and ‘Everyday’ citing lack of ROI and inconsistency in customer experience. Despite the current turbulence, the company remains confident about the long-term outlook driven by urbanisation and restaurant food penetration.
