Zomato Q1 results: Zomato, online food delivery major, announced a substantial growth in its quarterly profit on Thursday. This increase was driven by the high demand for both its food and grocery delivery services. During the April-June quarter, the company's consolidated net profit surged to Rs 253 crore ($30.22 million), marking a significant improvement from Rs 2 crore reported during the same period last year.
Zomato-controlled Blinkit achieved impressive financial performance in the first quarter of the fiscal year 2025. The revenue of its quick commerce vertical increased significantly by 22% quarter-on-quarter, reaching Rs 942 crore. Furthermore, the Gross Order Value (GOV) experienced substantial growth, rising by 130% year-on-year and 22% quarter-on-quarter to Rs 4,923 crore. Zomato had acquired Blinkit for $568 million in 2022.
"We have been focused from the beginning to increase the selection for our customers and offer it in the most efficient way to them. This has meant that the average selection available to customers in any neighbourhood has increased between 4-5x over the last eight quarters - we are now able to offer up to 25,000 unique SKUs to our customers in some locations. A large part of this expansion in selection has happened outside of the traditional grocery segments of FMCG, fruits & vegetables and staples. Over the last six quarters, we have launched and scaled products in electronics, beauty & make-up, pet care, and toys & games and we will continue to invest behind opportunities in newer categories as well," Blinkit CEO Albinder Dhindsa said in a note.
He added that next target is to hit 2,000 dark stores by the end of 2026 from 639 at the end of the June quarter of this fiscal.
"As of now, we see a line of sight of getting to about 2,000 stores for our current business. Most of these stores would be in top 10 cities in India. Beyond the large cities, the size of the market is still undiscovered. If everything goes as planned (which usually doesn’t), we plan to get to 2,000 stores, latest by the end of 2026 while remaining profitable," Dhindsa added.
"Our average GOV (gross order value) throughput per store has grown from about Rs 6 lakh per day per store when we were at 383 stores exactly a year ago to about Rs 10 lakh today when we are at 639 stores. For our top 50 stores today, this number is Rs 18 lakh per day per store, and growing," he added.
"We believe that most of our stores today are under utilised from a capacity standpoint and hence GOV per day per store should continue increasing from here even as we aggressively scale store count. From a demand standpoint, customer wallet share should keep increasing as we expand the selection available on our platform," he further said.