Zomato, the food delivery leader, is preparing for a challenging year ahead as it forecasts continued losses in the near future. CEO Deepinder Goyal pointed to a slowdown in demand for food delivery services, which has placed significant pressure on the company’s operations, even as it pushes forward with ambitious growth plans.
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In its latest financial update, Zomato reported a 14% drop in consolidated Adjusted EBITDA, which amounted to Rs 45 crore, despite seeing some improvements in food delivery margins. The decline can largely be attributed to increased spending on expanding Zomato’s quick commerce network, a move that has widened the company’s losses by Rs 95 crore compared to the previous quarter. Following the announcement, Zomato’s stock took a hit, falling 3.14% to Rs 240.95 per share on the BSE, after reaching an intraday low of Rs 228.80.
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Despite the short-term setbacks, Goyal expressed confidence in the company’s future, reaffirming that Zomato is still on track to achieve its goal of 2,000 stores by December 2025—one year ahead of schedule. However, the push to rapidly expand its store network could create difficulties in the immediate term, with some stores potentially underperforming and impacting profitability in the upcoming quarters.
