Zomato reports a stellar quarter, thanks to BlinkIt

Zomato hit all time highs after reporting first quarter results that exceeded expectations on revenues and profits, with 62% YoY revenue growth powered by strong performance across food delivery, quick commerce, and B2B segments.

Why it matters: Zomato's impressive growth and profitability improvements demonstrate the company's strong position in India's rapidly expanding food delivery and quick commerce markets.

Context: Zomato reported Q1 FY25 revenue ₹4,520 crore, up 62% year-over-year and 17% quarter-over-quarter.

• Gross Order Value (GOV) across B2C businesses grew 53% YoY to ₹15,455 crore.
• Food delivery GOV increased 27% YoY (10% QoQ).
• Quick commerce GOV surged 130% YoY (22% QoQ).
• Going-out GOV saw 106% YoY growth (19% QoQ).

Quick commerce average GOV throughput per store increased from ₹6 lacs to ₹10 lacs daily in one year.

State of play: Zomato achieved Adjusted EBITDA profitability exactly one year ago and has now reached an annualized profit of ~₹1,200 crore.

• Consolidated Adjusted EBITDA increased by ₹287 crore YoY to ₹299 crore in Q1FY25.
• The B2B business Hyperpure's revenue grew 96% YoY (27% QoQ) with improving profitability.

Caveat: While growth is strong, minor fluctuations in contribution margin are expected due to seasonality and other factors. Contribution margin slightly decreased QoQ from 7.5% to 7.3%.

Bottom line: Despite competitive pressures, Zomato's diverse business model and focus on profitability position it well for continued growth in India's evolving food tech and quick commerce landscape, as investors look for news ways to gain exposure to India's growing consumer class.