Zomato profits fall 57% in third quarter

Zomato’s revenue from operations rose 64 percent YoY to Rs 5,405 crore in Q3, up from Rs 3,288 crore a year ago. It had reported a revenue of Rs 4,799 crore in the previous quarter.

Zomato shares fell by 3.14 per cent to Rs 240.95 on the BSE on Monday.

The company said Blinkit store count crossed the 1,000-store mark, one quarter ahead of plan. It is aiming to get to 2,000 stores by December 2025, one year ahead of earlier guidance of Dec 2026. “Muted 17 per cent GOV (gross order value) growth in food delivery this quarter driven by broad-based demand slowdown,” it said.

“The losses in our quick commerce business this quarter are largely on account of pulling forward the growth investments in the business that we would have otherwise made in a staggered manner over the next few quarters. As of now, it seems like we will get to our target of 2,000 stores by December 2025, much earlier than our previous guidance of Dec 2026,” said Deepinder Goyal, Founder & CEO, Zomato.

“Data has shown us time and again that bringing down delivery time creates incremental demand for restaurant food… for example, when we started managing last mile delivery for restaurants (compared to restaurants delivering orders themselves earlier), we were able to bring down delivery time from 45 plus minutes to 30 minutes, which led to meaningful expansion in demand on our platform,” Goyal said.

“Our learning here was that 10-minute deliveries would be possible only if we ensure kitchen networks are dense (and thereby cut down travel time), while also bringing down kitchen preparation time. Doing this consistently and probably is not an easy problem to solve,” Goyal said.