Zomato's revenue rises 74% to Rs 4,206 crore in Q1FY25, profit jumps to Rs 253 crore

Deepinder Goyal-led food delivery giant Zomato has reported a substantial increase in net profit in the Q1FY25, reaching Rs 253 crore.

This is a remarkable jump from the Rs 2 crore net profit reported in the same quarter last year, which was notably the company's first net profit since its listing in 2021.

This marks the fifth consecutive quarter of profitability for the food delivery aggregator, which competes with IPO-bound Swiggy.

Revenue growth

The company's revenue increased significantly, increasing by 74% year-on-year to Rs 4,206 crore, compared to Rs 2,416 crore during the same quarter last year.

Zomato's Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for the quarter stood at a positive Rs 177 crore, compared to an EBITDA loss of Rs 48 crore in the same period last year. The EBITDA margin for this quarter was 4.2%.

Gross Order Value (GOV) during the quarter increased by 53% to Rs 15,455 crore, driven by consumer-facing businesses like food delivery, quick-commerce, and going-out.

Blinkit and employee costs

Blinkit, Zomato's quick-commerce business, reported an adjusted EBITDA of a negative Rs 3 crore. Despite this, the company added 113 stores, surpassing their guidance of 100 stores.

Additionally, Zomato has managed to reduce the share of ESOP charges in total employee costs from 54% at the end of the financial year 2022 to 31% at the end of the financial year 2024.

Total employee costs are down to 12%, with expectations of reaching a range of 6-8% by the end of the financial year 2026.

Rise in share price

Following the announcement of these positive results, Zomato's stock saw a significant rise. Shares of the company jumped 3.7% to an all-time high of Rs 238 apiece on the BSE. Over the past year, Zomato's stock price has surged 174% and is currently trading at a P/E ratio of about 148 times.

Last month, both Zomato and Swiggy increased their platform fees by 20%, from Rs 5 to Rs 6 per order.

It is believed that the rise in platform fees will help Swiggy improve its profitability goals, especially as it targets an IPO launch soon.

It's worth noting that the 'platform fee' is separate from other charges, such as delivery fees, goods and services tax (GST), and restaurant charges.