Zomato Allots 10.65 Cr ESOPs After Two Successive Profitable Quarters

Listed foodtech giant Zomato has allotted nearly 10.65 Cr equity shares under multiple employee stock option plans (ESOPs).

In an exchange filing, the company said its board has approved allotment of 10,64,69,448 fully paid-up shares under Zomato Employee Stock Option Plan 2018, Zomato Employee Stock Option Plan 2021 and Zomato Employee Stock Option Plan 2022.

Most of the shares were allotted under the 2021 ESOP plan by Zomato, with 30.95 Lakh shares being allotted under the 2018 and 2022 plans. The development comes just three months after it allotted 2.52 Cr shares to its employees in August 2023. 

Following the allotment of the shares, Zomato’s issued, subscribed, and paid-up equity share capital will increase from INR 860.44 Cr to INR 871.09 Cr.

The announcement regarding ESOPs came on the same day when Zomato released its financial statements for the quarter ended September 2023. Its share-based expenses rose to INR 132 Cr in Q2 FY24 from INR 100 Cr in the preceding quarter. However, it declined slightly from INR 137 Cr in Q2 FY23.

Meanwhile, Zomato reported its second consecutive profitable quarter, posting a profit after tax of INR 36 Cr in Q2 FY24. It had reported a PAT of INR 2 Cr in Q1 FY24, its maiden profitable quarter. In Q2 FY23, the company’s net loss stood at INR 251 Cr.

Zomato’s operating income jumped to INR 2,848 Cr during the quarter under review from INR 1,661 Cr in the year-ago quarter. 

The foodtech giant also saw its quick commerce arm Blinkit turn contribution positive for the whole quarter for the first time since its acquisition in June 2022. Blinkit’s contribution margin as a percentage of gross order value (GOV) in the overall business improved from -7.3% in Q2 FY23 to +1.3% during the quarter ended September 30, 2023.

Meanwhile, shares of Zomato ended Friday’s session 8.3% higher at INR 116.40 on the BSE, closing above its listing price on the bourses for the first time in about 22 months.