Stocks of Zomato skyrocketed 15 per cent in the Friday trading session after the food aggregator firm reported net profit of Rs 253 crore from a modest Rs 2 crore a year ago in its April-June quarter (Q1).
Zomato stock traded at Rs 269 with a whopping 15.17 per cent gain in the morning session on the National Stock Exchange (NSE).
The growth in profitability came 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.
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.
In terms of stock performance, Zomato stock delivered 115 per cent returns in the year 2024 so far, whereas the benchmark indices, Nifty and Sensex grew 13 to 14 per cent year-to-date (YTD).
