Zomato Ltd reported a net profit of ₹59 crore for Q3 FY25, marking a significant decline of 66.5% quarter-on-quarter (QoQ) from ₹176 crore in Q2 FY25. On a year-on-year (YoY) basis, the profit fell by 57.25% from ₹138 crore recorded in the same quarter last year. Despite the decline in profit, the company’s revenue from operations showed strong growth, rising by 64.39% YoY to ₹5,405 crore compared to ₹3,288 crore in Q3 FY24. However, revenue was up by only 13% QoQ from ₹4,799 crore in the previous quarter of FY25.
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The company’s EBITDA for the quarter stood at ₹162 crore, a significant 217.65% increase compared to ₹51 crore in the same quarter last year. However, on a sequential basis, EBITDA dropped by 28.3% from ₹226 crore in Q2 FY25. Margins also took a hit, declining by 171 basis points (bps) to 3% in Q3 FY25, compared to 4.7% in the previous quarter.
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Following the earnings announcement, Zomato’s share price experienced a sharp decline of 7%, trading at ₹231 on the NSE after initially showing strength earlier in the day. The results reflect rising expenditures outpacing income growth, putting pressure on the company’s profitability.
