Zomato has emerged as a powerhouse in the Indian food-tech industry, and its financial results for the fiscal year 2023-24 (FY24) showcase its impressive earnings growth and profitability. The company has transitioned from a phase of heavy losses to consistent profitability, reflecting its robust business strategy and market leadership.
Zomato’s Financial Performance in FY24
Revenue and Earnings Growth
In the first quarter of FY25, Zomato reported a revenue of ₹4,206 crore, marking a 74% year-on-year increase compared to ₹2,416 crore in the same quarter last year. This significant growth was driven by a combination of increased order volumes across its food delivery and quick commerce segments.
Zomato’s net profit also soared to ₹253 crore in Q1FY25, up from just ₹2 crore in the previous year. This marks the fifth consecutive quarter of positive earnings, a major turnaround from the losses reported in previous years. The company’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) turned positive as well, standing at ₹177 crore, with an EBITDA margin of 4.2%.
Segment-wise Breakdown
Food Delivery: Zomato’s core business continues to be a major revenue driver. The Gross Order Value (GOV) for food delivery increased by 53% year-on-year, reaching ₹15,455 crore. The company’s focus on customer engagement through loyalty programs like Zomato Gold has been pivotal in driving higher order frequencies and increasing average order values.
Quick Commerce (Blinkit): Blinkit, Zomato’s quick commerce division, has shown remarkable growth, with its revenue nearly doubling year-on-year. The segment’s Gross Order Value reached ₹4,930 crore, contributing significantly to Zomato’s overall earnings. Despite the intense competition in the quick commerce space, Blinkit has managed to break even in terms of adjusted EBITDA, a critical milestone for future profitability.
Other Revenue Streams: Zomato also generates income from advertising and subscription services like Zomato Pro, as well as its B2B supply chain business, Hyperpure. These segments, though smaller in comparison to food delivery and quick commerce, are essential to diversifying Zomato’s revenue base and ensuring long-term stability.
Zomato’s Financial Outlook
Zomato’s strong earnings in FY24 reflect its successful strategies in both food delivery and quick commerce. The company has managed to maintain its market leadership, expand into new segments, and achieve profitability, all while navigating a highly competitive landscape. Analysts expect Zomato’s revenue and earnings to continue growing, supported by ongoing expansions and improvements in operational efficiency.
FAQ
1. How much revenue did Zomato generate in FY24?
Zomato generated revenue of ₹4,206 crore in Q1FY25, marking a 74% year-on-year increase.
2. What is Zomato’s net profit in recent quarters?
Zomato reported a net profit of ₹253 crore in Q1FY25, up from ₹2 crore in the same period last year.
3. How is Blinkit contributing to Zomato’s earnings?
Blinkit’s revenue has nearly doubled year-on-year, contributing significantly to Zomato’s overall earnings and helping the company achieve adjusted EBITDA breakeven.
4. What is Zomato’s Gross Order Value (GOV) for food delivery?
Zomato’s food delivery GOV for Q1FY25 was ₹15,455 crore, showing a 53% year-on-year increase.
5. What are Zomato’s main revenue streams?
Zomato’s main revenue streams include food delivery, quick commerce (Blinkit), advertising, subscription services, and B2B supply chain operations through Hyperpure.
