Zomato Shares Drop 12.78% After Q3 Results

SUMMARY

Zomato shares plummeted 12.78% to INR 210.15 intraday on BSE, with the stock trading at INR 220.20 as of 12:20 PM

The foodtech major's consolidated net profit declined 57.2% YoY to INR 59 Cr in Q3 FY25, and fell 66% QoQ from INR 176 Cr

Operating revenue surged 64% YoY to INR 5,405 Cr with consolidated adjusted EBITDA rising 120% YoY to INR 285 Cr, despite higher quick commerce losses

Shares of Zomato fell as much as 12.78% to INR 210.15 during intraday trading on the BSE today (January 21) after the company announced its third-quarter results for financial year 2024-25. 

However, the shares shed some loss to trade 8.6% below at INR 220.20 at 12:20 PM.

The stock opened the day’s trade 7.4% lower at INR 223.10 per share today. 

Today’s slump follows yesterday’s dip of  8.02% post announcement of the result. The company’s net profit for Q3 FY25 was INR 59 Cr, a considerable decrease from the INR 138 Cr reported in the same quarter of the previous year. 

This also represents a 66% decline compared to the previous quarter’s profit of INR 176 Cr. 

Zomato’s market capitalisation was at INR 2,10,618.90 Cr at 12:20 PM with nearly 23 Cr shares of the company trading hands by then. 

The stock price has tumbled around 20.81% in the last one month from the current market price. However, it has maintained a handsome return of 66.64% over the last one year for its investors. 

The food technology company reported a significant 57.2% year-on-year drop in consolidated net profit, triggering a negative market reaction.

Despite this, its operating revenue climbed to INR 5,405 Cr in Q3 FY25, a 64% increase from INR 3,288 Cr in the corresponding quarter of the previous fiscal year. Sequentially, operating revenue rose 12.6% from INR 4,799 Cr.

Total revenue for the quarter, which includes other income of INR 252 Cr, was INR 5,657 Cr, compared to INR 3,507 Cr in Q3 FY24.

Consolidated adjusted EBITDA, excluding ESOP costs, soared 120% year-on-year to INR 285 Cr. The improvement was driven primarily by a higher food delivery adjusted EBITDA margin, which grew to 4.5% from 3% a year ago. 

This was partially offset by a 14% quarter-on-quarter decline in consolidated adjusted EBITDA, mainly because of accelerated investments in the expansion of its quick commerce dark store network.

You have reached your limit of free stories
Become A Startup Insider With Inc42 Plus

Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in india's startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Zomato Shares Drop 12.78% After Q3 Results-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Zomato Shares Drop 12.78% After Q3 Results-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Zomato Shares Drop 12.78% After Q3 Results-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Zomato Shares Drop 12.78% After Q3 Results-Inc42 Media
Zomato Shares Drop 12.78% After Q3 Results-Inc42 Media
You’re in Good company