Zomato Q2 results preview: The online food delivery company Zomato is set to announce its financial results for the July-September period (Q2FY25) on Tuesday, October 22.
According to experts, food delivery giant Zomato is anticipated to report a significant increase in both revenue and net profit for the September quarter of FY 2024-25.
Analysts expect the company to report robust profit and revenue figures for Q2FY25, fueled by the expansion of its food delivery operations. Additionally, revenue growth from its Hyperpure and Blinkit divisions could further contribute to the company’s strong Q2 performance.
Net profit and revenue
Brokerage firm Kotak Institutional Equities anticipates a 63 per cent year-on-year (YoY) revenue growth for Q2FY25, primarily fueled by a 37 per cent YoY increase in food delivery revenues.
Additionally, Hyperpure revenues are expected to rise by 74 per cent YoY, while Blinkit revenues are projected to grow by 122 per cent YoY. Kotak analysts estimate the total revenue for the second quarter to be ₹4,644 crore, up from ₹2,848 crore in the same period last year, reflecting a 63 per cent increase.
They also predict an 18.2 per cent YoY growth in revenue, driven by a 4.1 per cent YoY increase in the paying suppliers base and a 13.5 per cent YoY rise in average revenue per user (ARPU).
EBITDA
The brokerage firm further projects the EBITDA to reach ₹238.9 crore, compared to a loss of ₹47 crore year-on-year (YoY). The EBITDA margin is estimated at 5.1 percent YoY, versus a negative margin of 1.7 percent in the previous year.
The EBITDA margin is expected to improve to 5.7 percent, in contrast to a decline of 1.7 percent YoY.
During the Q2 results announcement, investors will be keen to hear management’s commentary and guidance regarding the Zomato or Blinkit business, as well as updates on the progress of the ‘District’ scale-up strategy.
Zomato Q1 FY25 performance
Zomato reported a 74 per cent year-on-year (YoY) increase in consolidated revenue, reaching ₹4,206 crore, marking an 18 per cent quarter-on-quarter (QoQ) growth. The company’s gross order value (GOV) for the quarter rose by 53 per cent, totaling ₹15,455 crore.
Net profit for the first quarter came in at ₹253 crore, a significant jump from the ₹2 crore reported in Q1 FY24. The food delivery GOV saw a 27 per cent YoY growth, quick commerce GOV surged by 130 per cent YoY, and going-out GOV increased by 106% YoY during the same period.
Zomato’s B2B division, Hyperpure, recorded a 96 per cent YoY revenue growth, with profitability continuing to improve.
