Zomato Q1FY25 net profit grows multifold to Rs 253 cr; share prices soar

This significant increase came riding on higher platform fees for consumers and improving the operational profitability of its quick commerce division, Blinkit, Moneycontrol reported.

Shares of food delivery and quick commerce company Zomato surged by as much as 19% to reach a record high of Rs 278.45 on the BSE on Friday, following the release of its first-quarter results. The company's market capitalization briefly approached $30 billion.

The stock closed at Rs 262.45 per share on Friday, marking a 12% increase from the previous close.

Over the past year, Zomato's share price has nearly tripled on the BSE.

This quarter also marked the fifth consecutive profitable quarter for Zomato.

The company's revenue grew by 74 percent year-on-year to Rs 4,206 crore, even as the broader e-commerce sector faced challenges from high inflation and reduced demand.

In the same quarter last year, Zomato reported its first net profit of Rs 2 crore and a revenue of Rs 2,416 crore, the report said.

Since then, Zomato's stock price has surged, driven by rising profitability in its core business and rapid growth in Blinkit.

Over the past year, Zomato's stock price has increased by 174 percent, currently trading at a P/E ratio of about 148 times, with a market capitalization exceeding Rs 2 lakh crore (over $25 billion), according to the report.

Zomato's food delivery gross order value (GOV) rose 27 percent to Rs 9,264 crore in the quarter, while quick commerce GOV surged 130 percent to Rs 4,923 crore compared to the previous year.

The company noted that the emergence of quick commerce has led to a shift in consumer behaviour, with many non-grocery purchases moving from traditional e-commerce to quick commerce for faster delivery.

"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," Blinkit chief Albinder Dhindsa was quoted as saying by Moneycontrol.

"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.

Meanwhile, the company has announced the launch of a new consumer app called 'District' for its going-out business, marking a broader expansion into various lifestyle services.

The app will encompass dining out, movies, sports ticketing, live performances, shopping, staycations, and more—all integrated into a single platform.

“Today, Zomato and Blinkit are our two large consumer businesses, serving customers' needs at home. However, we also have one of India’s largest 'going-out' businesses, helping our customers discover restaurants for dining out,” founder Deepinder Goyal said, according to the report.

He noted that this profitable business is operating at a run-rate of over $500 million in annualized Gross Order Value (GOV).