Zomato Q2 Results: Net profit jumps 389% YoY, board approves fund raising up to ₹8,500 crore via QIP | Key Highlights

Zomato Q2 Results: Online food delivery giant Zomato Ltd on Tuesday reported 389% year-on-year rise in its consolidated net profit for the fiscal's second quarter ended September (Q2FY25) to ₹176 crore. The company had reported a profit of ₹36 crore in the year-ago period. Sequentially, the net profit was down 30.43% from ₹253 crore in Q1FY25.

The revenue from operations stood at ₹4,799 crore for the July-September quarter which was higher by 68.50% from ₹2,848 crore reported in the corresponding quarter of the previous financial year.

The consolidated total income for the quarter that ended September stood at ₹5,020 crore which was up 64% from ₹3,060 crore reported in the corresponding quarter of the previous financial year (Q2FY24).

According to the company's exchange filing, the adjusted EBITDA for the current quarter significantly increased to ₹331 crore from ₹41 crore in the corresponding period last year.

“Bottomline (adjusted EBITDA) continued to improve driven by steady increase in food delivery margins and quick commerce business continuing to remain near break-eve,” the company said in an exchange filing.  

Gross order value

In Q2FY25, there was a 55% year-on-year (YoY) growth in GOV across their B2C businesses, amounting to ₹17,670 crore, which marks a 14% quarter-on-quarter (QoQ) improvement. When excluding the impact of the acquisition of Paytm’s entertainment ticketing business, the like-for-like basis shows a 53% YoY growth and a 13% QoQ improvement.

Blinkit

Blinkit, Zomato's quick commerce business, experienced a 129% year-on-year growth in adjusted revenues, reaching ₹1,156 crore. The gross order value (GOV) also saw a 122% year-on-year increase to ₹6,132 crore.

Despite this growth, the adjusted EBITDA remained negative at (- ₹8 crore). While the EBITDA losses have decreased from ₹124 crore a year ago, they have widened from ₹3 crore in the preceding June quarter. The margins for the segment stood at -0.1%.

Zomato's cash balance

In comparison to the previous quarter, the company's cash balance decreased by ₹1,726 crore due to the ₹2,014 crore agreement consideration for the purchase of Paytm's entertainment ticketing business.

Fund raise via QIP

Through a qualified institutional placement (QIP), Zomato's board approved raising an additional ₹8500 crore as a buffer to strengthen finances in a competitive environment.

“While the business is now generating cash (vis-a-vis a loss making business at the time of IPO), we believe that we need to enhance our cash balance given the competitive landscape and the much larger scale of our business today,” said the company. 

District app

Deepinder Goya, the CEO and co-founder of Zomato, stated that the new District app should launch within the next four weeks. Right now, the company's main goal is to ensure that the migration from the Zomato and Paytm platforms to the new District app goes smoothly.

Zomato share price today 

Following the results on Tuesday, Zomato share price on BSE finished 3.58% lower at ₹256.20 per share. Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said that the Zomato share price is down 4% and has broken below its previous support of 260, forming a lower top, lower bottom structure. As of now, as long as prices don't break back above 270, expect this weakness to continue with the next support at 240.

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