Zomato Sees Its Profit Leap To Rs 253 Cr; Revenue Up 74% In Q1

Food and grocery delivery giant Zomato has announced a remarkable increase in its financial performance for the April-June quarter, with net profits growing to Rs 253 crore from a modest Rs 2 crore a year ago. 

The growth in profitability comes alongside a substantial 74 per cent rise in operating revenue, which reached Rs 4,206 crore. This revenue growth is largely attributed to the success of Zomato’s quick-commerce arm, Blinkit, and its business-to-business grocery supply division, Hyperpure. 

Blinkit’s gross order value surged by 130 per cent year-on-year (YoY) to Rs 4,923 crore, driven by a rise in consumer demand and a shift from traditional e-commerce to quick-commerce solutions. The company is aggressively expanding its network of dark stores, aiming to reach 2,000 by the end of 2026, up from 639 as of June 30. This expansion comes amid increased competition from rivals such as Zepto, which recently secured USD 665 million in funding.

Despite challenges from competitive pressures, Blinkit’s CEO Albinder Dhindsa downplayed the impact of rising competition, noting that the company's focus on quality and reliability continues to resonate with customers. The food delivery segment, another cornerstone of Zomato’s operations, grew by 27 per cent YoY, with a gross order value of Rs 9,264 crore. However, profitability in this segment faced some seasonal fluctuations.

Zomato is also branching out into the entertainment sector with the launch of its new app, District. This app aims to capture demand beyond dining to include events and ticketing. The company’s "going-out" business reported a gross order value of Rs 1,268 crore for the quarter, a 106 per cent increase year-on-year. The new app is expected to further diversify Zomato’s offerings and could become a significant component of its future business strategy.