e-commerce
Zomato revenue hits Rs 5,657 million in Q3 while PAT shrinks to Rs 59 million
MUMBAI: Zomato, the poster child of India’s food-tech revolution, has released its Q3 FY25 results, revealing a fascinating mix of growth and persistent challenges. Founded by Deepinder Goyal, a man who turned his restaurant review dream into a billion-dollar reality, Zomato’s journey from a niche startup to a household name is nothing short of inspiring. Today, the company boasts a market valuation of over Rs 50,000 crore, but the path has been far from smooth.
In a bid to outpace competitors like Swiggy and Zepto, Zomato has aggressively expanded its portfolio. From acquiring Blinkit, which revolutionised its quick commerce game, to launching ‘Zomato District,’ an experimental dining experience platform, the company is firing on all cylinders. However, this rapid growth hasn’t come without its challenges. The acquisition spree and investments in new verticals have added significant strain to its financials. And let’s not forget the Rs 803.4 crore GST-related setback from Maharashtra —talk about an unexpected delivery charge!
With consolidated revenue hitting Rs 5,657 million, up from Rs 3,507 million a year ago, the numbers tell a story of resilience and reinvention. But as profitability continues to slip through its grasp, the burning question remains: can Zomato strike the elusive balance between growth and financial sustainability? Or is it simply running faster on a treadmill of rising costs? Buckle up, because this food-tech giant’s journey is far from over.
Consolidated Results
In Q3 FY25, Zomato’s consolidated revenue from operations surged by 54 per cent year-over-year to Rs 5,405 million, with additional income of Rs 252 million pushing total income to Rs 5,657 million. While these numbers showcase growth, they come with a hefty price tag—rising costs that seem as persistent as your favourite food app’s notifications.
Employee benefits expenses climbed to Rs 689 million, which makes one wonder: are delivery executives being given gold-plated scooters? Advertising and sales promotion costs held steady at Rs 421 million, showing Zomato’s relentless pursuit of eyeballs and appetites. Meanwhile, delivery-related charges hit a whopping Rs 1,450 million—proof that staying ahead in the food-tech race isn’t a cheap sport.
But here’s where the humour fades. Despite revenue growth, Zomato’s profit before tax tumbled to Rs 124 million, a notable dip from Rs 237 million in the previous quarter. The consolidated profit after tax (PAT) followed suit, shrinking to Rs 59 million, down from Rs 176 million last quarter. Even EBITDA, the trusty metric of operational health, showed only marginal improvement. Is this growth, or are we just running on a treadmill of expenses?
Adding spice to the financial mix, Zomato’s segment performance revealed contrasting flavours: Hyperpure, its B2B vertical, grew a sizzling 94.5 per cent YoY, while Quick Commerce revenue rocketed 117 per cent YoY, contributing Rs 1,399 million to the top line. But profitability? It’s still playing hard to get—a romance worthy of a Netflix drama.
So, what’s the takeaway here? Is Zomato on a path to future dominance, or is it stuck in a never-ending balancing act between growth and margin woes? Investors, grab your popcorn, because this plot just keeps thickening!
Standalone Results
The standalone results painted a slightly brighter picture—a rare dessert in a financial menu filled with rising costs. Revenue from operations for Q3 FY25 climbed to Rs 2,226 crore, up from Rs 1,782 crore in the same period last year. Including Rs 311 crore in other income, total income reached Rs 2,537 crore, offering some much-needed cheer to investors. Who doesn’t love a surprise topping?
But let’s not pop the champagne just yet. Employee benefits expenses rose to Rs 333 crore—are we paying delivery riders in Bitcoin now? Meanwhile, delivery-related costs surged to Rs 941 crore, showing that keeping up with a booming market comes at a steep price. Despite these headwinds, Zomato managed to serve up a standalone profit before tax of Rs 574 crore, a healthy increase from Rs 385 crore in Q3 FY24. The standalone PAT came in at Rs 494 crore, proving that even amidst turbulence, there’s room for optimism.
So, can Zomato keep delivering these sweet surprises, or are rising costs about to steal dessert off the table? Investors, stay tuned!
Operational Highlights
1. Segment Growth:
. Food delivery revenue grew by 21.6 per cent YoY to Rs 2,072 million.
. Hyperpure, Zomato’s B2B vertical, surged by 94.5 per cent YoY to Rs 1,671 million.
. Quick commerce, a new darling, contributed Rs 1,399 million, up from Rs 644 million last year.
2. Acquisitions: Zomato’s acquisition spree continues to bear fruit. The recent addition of Wasteland Entertainment Private Limited (WEPL) and Orbgen Technologies Private Limited (OTPL) underscores its focus on diversification.
3. Regulatory Challenges: The company faced a GST-related setback, with demands totalling Rs 420 crore from Maharashtra and West Bengal authorities. While management remains optimistic, these disputes add another layer of complexity to its financial landscape.
Zomato’s results reflect the growing pains of a company caught between scaling operations and achieving profitability. While the rapid growth in Hyperpure and Quick Commerce shows plenty of promise, the company’s ballooning costs and pesky regulatory hurdles resemble hurdles in a marathon where the finish line keeps moving.
So, what’s the final verdict? Is Zomato writing the next big food-tech success story, or is it cooking up a recipe for endless spending? As India’s food-tech landscape becomes more cutthroat, the stakes for Zomato couldn’t be higher. The question isn’t just whether they can deliver food on time but whether they can finally deliver profits to investors. One thing’s for sure: this is a journey worth watching—and it’s bound to be as spicy as a midnight biryani craving!
Key Financial Highlights
. Consolidated Revenue: Rs 5,405 million for Q3 FY25; Rs 14,410 million for nine months.
. Standalone Revenue: Rs 2,226 million for Q3 FY25; Rs 6,425 million for nine months.
. PAT (Consolidated): Rs 59 million for Q3 FY25; Rs 488 million for nine months.
. EBITDA Margin: Improved slightly but remains constrained by rising costs.
. Segment Growth: Hyperpure surged by 94.5 per cent YoY, Quick Commerce up by 117 per cent YoY.
e-commerce
Flipkart rolls out 105 per cent bonus for 20,000 employees
Strong FY25 performance drives payouts even as layoffs and shifts unfold.
MUMBAI: In a year where belts were tightened and rewards loosened, Flipkart seems to be playing both offence and defence trimming roles on one hand while handing out a generous 105 per cent bonus on the other. The Walmart owned e commerce major has rolled out a 105 per cent bonus payout for 2025, covering nearly 20,000 employees, signalling a year of steady operational momentum even as the company navigates restructuring pressures. The payout, communicated internally by chief human resources officer Seema Nair, is tied to performance across key metrics including growth, operational efficiency, financial outcomes and people indicators, a combination that suggests the company is inching closer to its long stated goal of sustainable profitability.
Employees at SD level and below are set to receive their bonuses in March, while payouts for senior leadership, including vice presidents and senior vice presidents, will follow after the close of the performance cycle. The elevated 105 per cent multiplier stands out in a sector where cautious payouts have increasingly become the norm, pointing to what appears to be a relatively strong internal scorecard for FY25.
Yet, the announcement arrives with a noticeable contrast. Earlier this year, Flipkart reduced its workforce by around 300 roles as part of its annual performance review process. While officially framed as performance driven, the juxtaposition of layoffs alongside above target bonuses reflects a more nuanced balancing act, one that prioritises cost discipline while continuing to reward and retain high performing talent.
This dual approach is becoming increasingly common across the technology and e commerce landscape, where companies are navigating an uneven hiring environment while under pressure to deliver profitability. Rewarding top contributors, even amid selective workforce reductions, allows firms to maintain morale and retain critical talent without losing sight of financial prudence.
At the same time, Flipkart is also undergoing leadership shifts that hint at a broader strategic recalibration. Nishant Verman has been appointed senior vice president for corporate development and partnerships, while group chief financial officer Sriram Venkataraman is set to step down. Ravi Iyer will take on expanded responsibilities within the finance function, marking a reshuffle at the top as the company gears up for its next phase.
These changes come amid reports that Flipkart is planning to shift its holding structure back to India, a move widely interpreted as groundwork for a potential public listing. While timelines remain fluid, the combination of stronger financial discipline, leadership restructuring and employee incentivisation suggests a company preparing itself for greater scrutiny and scale.
For employees, the 105 per cent payout offers a welcome boost in what has otherwise been a period of adjustment. For Flipkart, it is a signal that even as it cuts where necessary, it is willing to spend where it counts. In the high stakes game of growth versus profitability, the company appears to be hedging its bets carefully, rewarding performance while reshaping itself for what could be its most defining chapter yet.
