Zomato’s Net Profit Surges to ₹253 Crore in Latest Quarter
Food delivery giant Zomato has reported a remarkable surge in net profit for the quarter ended June, reaching ₹253 crore, a substantial increase from ₹2 crore in the corresponding period last year. This surge has been attributed to the company’s higher gross order value across its food delivery, quick commerce, and going-out verticals.
The company’s consolidated quarterly revenue also saw a significant uplift, climbing to ₹4,442 crore from ₹2,597 crore a year earlier.
Among its various verticals, quick commerce displayed outstanding growth, with a staggering 130% increase in gross order value. Additionally, the food delivery and going-out verticals experienced growth rates of 27% and 106% respectively, as per a statement released by the company on Thursday.
Looking ahead, Zomato has set ambitious targets for its quick commerce vertical, aiming to establish 2,000 stores for its venture “Blinkit” by the conclusion of 2026. Albinder Dhindsa, Co-founder and CEO of Blinkit, expressed, “Most of these stores would be in the top 10 cities in India. Beyond the large cities, the size of the market is still undiscovered.” He also emphasized the company’s dependency on various factors, including speed, execution, and supply chain efficiencies, in achieving this target, adding, “If everything goes as planned, we plan to get to 2,000 stores, latest by the end of 2026 while remaining profitable.”
Providing further insight, Dhindsa highlighted the remarkable growth in Blinkit’s average gross order value per store, which has surged to approximately ₹10 lakh today for its 639 stores, compared to ₹6 lakhs per day per store when it operated 383 stores. Notably, for the top 50 stores, this value stands at ₹18 lakh per day per store and continues to grow, reflecting the company’s upward trajectory.
Dhindsa also underlined the underutilization of their stores, expressing optimism that the gross order value per day per store should continue to increase as the company aggressively scales its store count. He also pointed out that customer wallet share is expected to rise as the platform expands its product selection.
Furthermore, Zomato’s quick commerce vertical is dedicated to broadening its customer selection, with the average selection in any neighborhood store having grown 4-5 times over the past eight quarters. The company now offers up to 25,000 unique SKUs in some locations, a significant expansion that includes categories such as electronics, beauty, pet care, and more.
Addressing concerns of market share, Dhindsa clarified that Blinkit is not displacing the market share of traditional retailers like kiranas or players like DMart, particularly in value-focused categories where price sensitivity is higher.
In an ambitious move, Zomato has introduced a new app, “District,” for its going-out business. Currently, the company’s dining-out segment operates at a run rate of over $500 million in annualized gross order value and is profitable. Zomato’s CEO Deepinder Goyal expressed confidence in expanding the going-out offering, tapping into emergent use cases such as movies, sports, ticketing, live performances, shopping, and staycations.
The company’s foray into these new segments seems to be a strategic step in diversifying its revenue streams and expanding its foothold in the highly competitive market.
In summary, Zomato’s significant expansion in various verticals and its concerted efforts towards diversification signal a strong growth trajectory for the company. With an unwavering focus on innovation and customer satisfaction, Zomato appears poised to make further inroads into the dynamic Indian market and beyond.
