Zomato's Q1 profit skyrockets to Rs 253 Cr as Blinkit growth more than doubles
Zomato faces stiff competition from its IPO-bound rival Swiggy and quick commerce unicorn Zepto, and is focusing on developing its stepping-out vertical for growth.
Food aggregator Zomato on Thursday reported a massive surge in its quarterly profit to Rs 253 crore in the April-June 2024 quarter, up from Rs 2 crore a year ago, as consumers continue to stay bullish on quick commerce.
The Deepinder Goyal-led company saw a 74% hike in its operating revenue to Rs 4,206 crore during the first quarter of FY25 from Rs 2,416 crore it reported a year ago.
It clocked its first maiden profit during the first quarter of FY24.
Revenue from its food delivery segment, which continues to be its largest vertical, grew 41% to Rs 1,942 crore. Meanwhile, its B2B arm Hyperpure business nearly doubled to Rs 1,212 crore in the three months ended June 30, 2024.
Zomato has been bullish on its quick commerce arm, Blinkit, which currently accounts for 22% of its total revenues. Blinkit's revenue more than doubled to Rs 942 crore during Q1 FY25 from Rs 384 crore last year.
The company, in its annual results for FY24, had announced its plans to increase to 1,000 quick commerce stores by March 2025. It expects to reach 2,000 stores by the end of 2026 while remaining profitable.
However, competition in the quick commerce sector has been increasing with players doubling down on expansion and subsidies to capture and retain market share. Zomato added 113 dark stores, with an adjusted EBITDA loss of Rs 3 crore during the first quarter.
"Some players have been spending more on marketing and subsidies. However, our customers, who value quality of service and reliability, seem to be unaffected and that reflects in our performance of the quarter, where we have grown 20%+ without the need to match the spends or subsidies of our competitors," noted Albinder Dhindsa, Founder of Blinkit, in a statement.
Just a fortnight ago, Zomato, along with its peer Swiggy, hiked its platform fee by 20% to Rs 6 per order in high traction areas in an attempt to pad up its bottom line in the face of sluggish growth in its food delivery segment.
Zomato's shares climbed 3.86% at the end of trading today to reach Rs 237.90.
(The copy has been updated with additional details.)
Edited by Kanishk Singh
