Zomato Q2 FY25 results: Profit zooms 389% YoY to Rs 176 crore; revenue up 69%

Online food and grocery delivery platform Zomato Ltd on Tuesday reported a stellar growth of 388.89 per cent, year-on-year (YoY), in its second quarter consolidated net profit (Q2 FY25). During the quarter under review, profit came at Rs 176 crore as against Rs 36 crore in the year-ago period.

However, profit slipped by 30.44 per cent in Q2 FY25 from Rs 253 crore in the previous quarter.

Revenue from operations grew 68.50 per cent to Rs 4,799 crore as compared to Rs 2,848 crore in the corresponding period last year.

On the profitability front, Zomato said its consolidated adjusted EBITDA increased by Rs 289 crore YoY to Rs 330 crore in Q2 FY25 driven by improving food delivery margins and near break-even quick commerce margins despite the rapid store expansion.

Food delivery gross order value (GOV) grew by 21 per cent YoY (5 per cent QoQ). "The business remains steady and continues to grow well," said Akshant Goyal, CFO at Zomato.

Quick commerce GOV increased by 122 per cent YoY (25 per cent QoQ). In Q2 FY25, the company added 152 net new stores and seven warehouses. It aims to increase its store count to 2,000 by the end of 2026.

Zomato also approved raising up to Rs 8,500 crore through the issue of shares in a qualified institutional placement (QIP).

"While the business is now generating cash (vis-a-vis a loss making business at the time of IPO), we believe that we need to enhance our cash balance given the competitive landscape and the much larger scale of our business today. We believe that capital by itself does not give anyone the right to win (and that service quality is the key determinant of success), but we want to ensure that we are on a level playing field with our competitors, who continue to raise additional capital," said Deepinder Goyal, Founder & CEO at Zomato.

Shares of Zomato settled 3.58 per cent lower at Rs 256.20. At this price, the stock has delivered multibagger returns to investors by rallying 105.78 per cent on a year-to-date (YTD) basis.