Zomato’s Q3 Cons Adjusted EBITDA Declined By 14%

Deepinder Goyal said: “As of now, it seems like we will get to our target of 2,000 quick commerce stores by Dec 2025, much earlier than our previous guidance of Dec 2026.”

Deepinder Goyal, Founder & CEO, Zomato

FinTech BizNews Service

Mumbai, January 20, 2025: Food delivery company Zomato announced on Monday Consolidated Adjusted EBITDA grew 128% YoY to INR 285 crore in Q3FY25, largely driven by improvement in food delivery Adjusted EBITDA margin (as a % of GOV) to 4.3% compared to 3.0% a year ago.

Key takeaways 

1. Topline (Adjusted Revenue) growth remains strong at 58% YoY (12% QoQ); INR 5,746 crore ie. broadly in line with GOV (B2C business) growth.
2. Consolidated Adjusted EBITDA grew 128% YoY to INR 285 crore in Q3FY25, largely driven by improvement in food delivery Adjusted EBITDA margin (as a % of GOV) to 4.3% compared to 3.0% a year ago.
3. On a QoQ basis, consolidated Adjusted EBITDA declined by 14% (or INR 45 crore) despite the improvement in food delivery margins, largely due to accelerated investments in expanding our quick commerce store network, where quarterly losses increased by INR 95 crore QoQ. 
4. Blinkit store count crossed the 1,000 store mark, one quarter ahead of plan. Aiming to get to 2,000 stores by Dec 2025, one year ahead of earlier guidance of Dec 2026.
5. Muted 2% QoQ (17% YoY) GOV growth in food delivery this quarter, driven by broad-based demand slowdown. Sharp rise in Adjusted EBITDA margins from 3.5% in Q2FY25 to 4.3% in Q3FY25.
6. Launched the all-new District and Bistro mobile apps.

Zomato revealed data & details in its letter to shareholders. Akshant Goyal, CFO, said: “GOV of our B2C businesses grew 57% YoY (14% QoQ) to INR 20,206 crore in Q3FY25. On a like-for-like basis (excluding the impact of the acquisition of Paytm’s entertainment ticketing business) GOV growth was 52% YoY (12% QoQ). - Food delivery GOV grew 17% YoY (2% QoQ) - Quick commerce GOV grew 120% YoY (27% QoQ), and - Going-out GOV grew 191% YoY (35% QoQ); like-for-like (excluding Paytm’s entertainment ticketing business acquired in Aug 24) GOV grew 119% YoY (15% QoQ) Our B2B business Hyperpure’s Revenue grew 95% YoY (13% QoQ). Consolidated Adjusted Revenue grew 58% YoY (12% QoQ) to INR 5,746 crore, broadly in line with GOV growth. On the profitability front, consolidated Adjusted EBITDA grew 128% YoY to INR 285 crore in Q3FY25, largely driven by improvement in food delivery Adjusted EBITDA margin (as a % of GOV) to 4.3% compared to 3.0% a year ago. However, on a QoQ basis, consolidated Adjusted EBITDA declined by 14% (or INR 45 crore) despite the improvement in food delivery margins, largely due to accelerated investments in expanding our quick commerce store network, where quarterly losses increased by INR 95 crore QoQ.”

Deepinder Goyal, Founder & CEO, Zomato said: “The losses in our quick commerce business this quarter are largely on account of pulling forward the growth investments in the business that we would have otherwise made in a staggered manner over the next few quarters. As of now, it seems like we will get to our target of 2,000 stores by Dec 2025, much earlier than our previous guidance of Dec 2026.”

Akshant expect losses to continue in the near term. He Said: “As we continue to bring forward store expansion, our networks may have to carry a greater load of under-utilized stores which will impact near-term profits in the next one or two quarters. These investments will however also likely result in GOV growth remaining meaningfully above 100%, at least for FY25 and FY26. Once we come out from this period of expansion, the business is likely to turn sharply from being loss making to becoming meaningfully profitable as a larger part of our business starts comprising mature stores compared to newly added ones. We remain confident of navigating the short term (expansion/ competition) with focus and discipline.”