Zomato Shares Extend Losses For Fourth Day, Plunge 5% To INR 203.80

Zomato Shares Tumble Over 5% To Drop Below INR 200 Mark

SUMMARY

Zomato's stock dropped 5.05% to INR 203.80, marking its fourth consecutive day of losses, with the share price declining over 12% in the last five trading sessions and now trading 31% below its 52-week high.

The decline follows disappointing Q3 FY25 results, with consolidated net profit falling 57.2% YoY to INR 59 Cr and core food delivery business growth (17% YoY) falling short of the 20%+ target.

Increased competition in quick commerce and rapid dark store expansion led to Blinkit's losses increasing significantly, while analysts suggest Zomato may have lost market share to competitors offering faster delivery services.

Shares of Zomato

plunged 5.05% to hit an intraday low of INR 203.80 on the BSE today (January 22), extending their losses for the fourth consecutive day.

At 1:36 PM, the stock was trading at INR 210.25, down 1.05% from its previous close.

At the time of writing, Zomato’s market capitalisation stood at INR 2,02,898.62 Cr (about $23.44 Bn).

In the last five trading sessions, Zomato’s share price has tanked over 12% with the stock now trading 31% below its 52-week high of INR 304.50.

The decline in the share price comes after the company reported subdued financial numbers for the quarter ended December 31, 2024. Zomato’s consolidated net profit declined 57.2% to INR 59 Cr in Q3 FY25 from INR 138 Cr in the year-ago quarter. On a sequential basis, profit slumped 66% from INR 176 Cr in Q2 FY25.

While operating revenue surged 64% to INR 5,405 Cr, the company’s core food delivery business showed signs of slowdown with GOV growing 17% YoY to INR 9,913 Cr, below its target of 20%+ growth.

The quick commerce unit Blinkit saw its adjusted EBITDA loss surge over 13X to INR 103 Cr in Q3 from INR 8 Cr in Q2 FY25 amid rising competition and accelerated investments in dark store expansion.

In a recent note, ICICI Securities analysts noted that Zomato may have lost some market share in food delivery during Q3 as competitors scaled up 10-15 minute delivery services faster, though Zomato CFO Akshant Goyal downplayed the impact of rising competition during the earnings call.

“I don’t think any of this has so far had a material impact on Zomato restaurant aggregation food business…any form of 10-minute delivery is at a very early stage and will not move the needle at all even if you put it together,” said Goyal.

It is to be noted that Zomato recently began offering a 15-minute food delivery service on its app while its quick commerce arm Blinkit has rolled out a 10-minute delivery service called ‘Bistro’.

Its direct competitor Swiggy has rolled out similar offerings – Bolt & SNACC — while Aadit Palicha-led Zepto offers a similar offering under Zepto Cafe.