Zomato Q3 Earnings: Net Profit Falls 57% Despite Revenue Growth

By Muzzammil

Zomato Q3 Earnings

Zomato reported its Q3 FY2025 financial results, revealing a mixed performance. The company’s net profit saw a steep decline of 57%, dropping to₹59 crore compared to₹137 crore in the same period last year. Despite this, revenue surged over 64% to ₹2,845 crore, driven by strong growth in food delivery volumes and expanded offerings. Read more details on the report from Moneycontrol.


Revenue Growth Amid Challenges

The revenue jump underscores Zomato’s ability to scale its operations, supported by higher order volumes and improved average order values. The company attributed its revenue growth to its revamped loyalty program and increased penetration into tier-2 and tier-3 cities. Analysts also highlighted the impact of strategic investments in its delivery infrastructure and technology platforms.

Zomato CEO Deepinder Goyal noted in an interview with CNBC, “While revenue expansion has been encouraging, rising operational costs and competitive pressures have impacted our margins this quarter.”


Decline in Profitability

The sharp fall in net profit highlights rising costs as a significant challenge for Zomato. Increased spending on marketing, delivery incentives, and expansion efforts weighed heavily on the company’s bottom line. Analysts have noted that despite strong revenue growth, profitability remains a key area of concern for the food delivery giant. For an industry perspective, check out this analysis on food-tech challenges.


Key Financial Highlights

  • Net Profit: ₹59 crore, a 57% decline year-on-year.
  • Revenue: ₹2,845 crore, up 64% from ₹1,735 crore in Q3 FY2024.
  • EBITDA Margin: Declined to 2.1%, compared to 6.5% in the previous quarter.

Future Outlook

Despite the dip in profits, Zomato remains optimistic about long-term growth. The company plans to focus on enhancing operational efficiency, exploring new revenue streams, and investing in technology to drive scaleability.

Investors are now watching closely to see how Zomato balances its growth ambitions with profitability in an increasingly competitive market. For a detailed breakdown of its future strategies, visit Zomato’s official site.

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