Zomato's Q1 FY25 profit surges 126 times to over ₹250cr
Zomato, a leading online food delivery platform, has reported a significant surge in its net profit for the first quarter (Q1) of the current fiscal year (FY) 2025. The company's net profit soared to ₹253 crore in the April-June quarter from a mere ₹2 crore during the same period last year, marking a jump of over 126 times. This marks Zomato's fifth consecutive quarter of profitability. The firm also witnessed robust growth in revenue during this period.
Revenue sees a 74% YoY increase
Zomato's revenue experienced a substantial year-on-year (YoY) increase of nearly 74% during Q1 FY25, rising to ₹4,206 crore from ₹1,416 crore last year. The company's profitability was further bolstered by an increased other income component, which stood at ₹236 crore.
EBITDA and gross order value rise in Q1
Zomato reported a positive Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of ₹177 crore for the quarter. This is an improvement from an EBITDA loss of ₹48 crore during the same period last year. The company also saw a 53% increase in its Gross Order Value (GOV) to ₹15,455 crore. GOV is defined by Zomato as the combined order value of consumer-facing businesses like food delivery, quick-commerce and going-out.
Quick-commerce business and employee costs
Zomato's quick-commerce business, Blinkit, reported an adjusted EBITDA of negative ₹3 crore. The company successfully added 113 stores, surpassing their initial target of 100 stores for the quarter. Additionally, Zomato reported a decrease in the share of ESOP charges in total employee cost from 54% at the end of FY 2022 to 31% at the end of fiscal year 2024. The total employee costs now stand at 12%.
Stock price surges following earnings announcement
Following the earnings announcement, Zomato's stock price saw a sharp increase and closed 2.02% up at ₹234.09. Over the past year, Zomato's stock price has surged by 174%, primarily due to increased profitability in its core business and fast growth of its quick commerce arm, Blinkit. The company's stock is currently trading at a P/E ratio of about 148 times.
