Zomato Shares Tank Over 8% After Q3 Profit Declines

SUMMARY

With a drop in share prices, its market capitalisation declined to INR 2,21,909 Cr at 3:27 PM

In Q3 FY25, Zomato’s consolidated net profit slumped 57.2% to INR 59 Cr from INR 138 Cr in the year-ago quarter.

However, operating revenue surged over 64% to INR 5,405 Cr during the quarter under review from INR 3,288 Cr in the December quarter last year

Shares of Zomato

plunged 8.02% to INR 228.80 on BSE after the listed foodtech major announced its financial results for the December 2024 quarter (Q3 FY25).

With a drop in share prices, its market capitalisation declined to INR 2,21,909 Cr at the time of writing this story (3:27 PM) with nearly 10 Cr shares of the company trading hands by then.

In Q3 FY25, Zomato’s consolidated net profit slumped 57.2% to INR 59 Cr from INR 138 Cr in the year-ago quarter. On a quarter on quarter basis, profit slumped 66% from INR 176 Cr.

However, operating revenue surged over 64% to INR 5,405 Cr during the quarter under review from INR 3,288 Cr in the December quarter last year. Sequentially, the company’s operating revenue rose 12.6% from INR 4,799 Cr.

On a year-to-date basis, the stock has plunged over 16.56% and 18.22% on a monthly basis.

However, the company’s shares recouped some of its losses and closed the trading session today 3.14% lower at INR 240.95.

A few days ago, Zomato infused around INR 500 Cr in its quick commerce arm Blinkit. As per Blinkit’s regulatory filings, it allotted 2,537 equity shares at an issue price of INR 19.7 Lakh (19,70,181) each to raise INR 499.83 Cr from Zomato.

While brokerage firm JM Financial reiterated its ‘buy’ rating on the foodtech major, Hong Kong-based brokerage CLSA reaffirmed its ‘outperform’ rating for the foodtech major, last week.

Earlier this month, after Swiggy’s Bolt, Zomato also launched a 15-minute food delivery service. The service is currently operational in parts of Delhi NCR. Zomato’s app shows an option for quick deliveries in a radius of about 2 km.

It is pertinent to note that Zomato was also included in BSE Sensex in November last year.