Zomato, a large food delivery company, announced on Tuesday that its profits for the fiscal second quarter increased by 388.9% to Rs 176 crore, compared to Rs 36 crore in the same period of the previous fiscal year. Compared to Rs 2848 crore in the same quarter of FY24, its operating income of Rs 4799 crore represented a 68.5 per cent increase. The company’s EBITDA was Rs 226 crore, compared to a YoY EBITDA loss of Rs 47 crore.
Zomato added 152 Blinkit stores in Q2 2025, despite most of its stores being profitable. CFO Akshant Goyal said the additions were affecting margins due to investments in infrastructure, including new stores and warehouses. The short-term margin dilutive nature of these new stores and warehouses is affecting the company’s overall profitability.
Swiggy, which recently submitted documents for an IPO, has been a formidable rival of Zomato. According to experts at Elara Capital, Blinkit has been expanding its network of outlets in an effort to counteract the growing competition, which has negatively impacted Zomato’s profitability. Although the business opened 152 Blinkit outlets in Q2, it had already opened 40 in Q3FY24, 75 in Q4FY24, and 113 in Q1.
Regarding GOV, Zomato said that in Q2FY25, GOV growth across B2C enterprises grew to 55% YoY at Rs 17,670 crore. GOV increase on a like-for-like basis was 53% year over year. In the meanwhile, going-out GOV increased 171% YoY, rapid commerce GOV increased 122%, and food delivery GOV increased 21% on an annual basis. Additionally, the revenue of Zomato’s B2B company Hyperpure increased by 98%.
Due to the purchase consideration (Rs 2,014 crore) for the acquisition of Paytm’s entertainment ticketing business, Zomato’s cash balance decreased by Rs 1,726 crore from the previous quarter. Despite having a solid financial sheet, the company’s board has approved a fundraising plan of Rs 8,500 crore through the issuance of a qualified institutional placement. “Zomato’s consolidated annualised Adjusted Revenue has grown four times in approximately three years – from Rs 4,640 crore at the time of our IPO in July 2021 to Rs 20,508 crore now,” stated Deepinder Goyal, CEO of Zomato.
Our cash balance has decreased from around Rs 14,400 crore to roughly Rs 10,800 crore during this time frame, mostly due to supporting previous fast commerce losses as well as certain equity investments and acquisitions. Even if the company is now making money, we think that considering the competitive environment and the considerably bigger scope of our operations today, we need to improve our cash balance.
“We believe that capital alone does not give anyone the right to win (and that service quality is the most important determinant of success), but we want to ensure that we are on a level playing field with our competitors, who continue to raise additional capital,” he said, adding that the fund raise is intended to strengthen the company’s balance sheet.
