What made Zomato successful?


Zomato

 

Zomato has shown significant growth in recent years, driven by its core food delivery business, quick commerce arm Blinkit, and other segments like Hyperpure and Going-out. Here’s a concise overview based on recent data:

**Revenue Growth** : 

  - In Q1 FY26 (April-June 2025), Zomato’s parent company, Eternal Ltd., reported a 67% year-on-year (YoY) revenue increase to ₹7,563 crore, with a 22% quarter-on-quarter (QoQ) growth.

  - For FY25, Zomato’s revenue grew 67% YoY to ₹20,243 crore, outpacing competitor Swiggy’s 35% growth to ₹15,227 crore.

  - In Q1 FY25, revenue from operations rose 74% YoY to ₹4,206 crore, driven primarily by Blinkit’s quick commerce segment.

**Quick Commerce (Blinkit)** :

  - Blinkit’s sales grew 126% YoY to ₹5,206 crore in FY25, with a 92% reduction in EBITDA losses, indicating a path toward profitability.[](https://www.indmoney.com/blog/stocks/swiggy-vs-zomato-fy25)

  - In Q1 FY26, Blinkit’s Net Order Value (NOV) surpassed food delivery for the first time, contributing significantly to the 55% YoY NOV growth across Zomato’s B2C businesses (₹20,183 crore).

  - Blinkit’s Gross Order Value (GOV) in Q1 FY25 grew 22% QoQ to ₹4,923 crore, with average GOV per store rising from ₹6 lakh/day (383 stores) to ₹10 lakh/day (639 stores).[](https://www.business-standard.com/companies/results/zomato-q1-fy25-results-profit-rises-to-rs-253-crore-revenue-up-74-124080100962_1.html)

**Food Delivery** :

  - Zomato’s food delivery business holds a 55-58% market share and is projected to grow at 30% annually for the next five years.[](https://inc42.com/buzz/zomatos-food-delivery-business-will-grow-30-annually-over-next-5-years-ceo/)[](https://www.indmoney.com/blog/stocks/swiggy-vs-zomato-fy25)

  - In Q2 FY25, food delivery GOV increased 5% QoQ to ₹9,690 crore, with operating revenue up 68.5% YoY to ₹2,848 crore.

**Profitability** :

  - Zomato reported a profit of ₹527 crore in FY25, a 50% YoY increase, while Swiggy reported a ₹3,117 crore loss.

  - Consolidated adjusted EBITDA in Q1 FY25 rose to ₹299 crore, up ₹287 crore YoY, driven by margin expansion across all businesses.

  - However, Q3 FY25 saw a 14% QoQ decline in adjusted EBITDA (₹45 crore) due to rapid Blinkit store expansion, which increased depreciation costs.

**Operational Highlights** :

  - Zomato operates in over 800 Indian cities and has expanded its restaurant network to 247,000 active partners as of March 2025, an 18% YoY increase.

  - Hyperpure, Zomato’s B2B supplies vertical, saw a 27% QoQ revenue increase to ₹1,216 crore in Q1 FY25.

  - Challenges include high delivery driver attrition and margin pressure from quick commerce expansion.

**Market Performance** :

  - Zomato’s stock surged 10% post-Q1 FY26 results, reflecting investor confidence despite a 90% YoY net profit drop due to Blinkit’s expansion costs.

  - Analyst price targets range from ₹255 (Jefferies, “Hold”) to ₹355 (Morgan Stanley, “Overweight”), with Nomura at ₹290, citing Zomato’s quick commerce leadership.

**Market Context** :

  - India’s online food delivery market is expected to grow at an 18% CAGR, contributing 20% to the food services market by 2030. Quick commerce is projected to grow 40-45% in Gross Merchandise Value over the next three years.

  - Zomato’s market cap was ₹2,57,278 crore as of July 21, 2025, with a share price of ₹276.50.[](https://economictimes.indiatimes.com/zomato-ltd/stocks/companyid-57948.cms)

Zomato’s growth is fueled by its dominant food delivery platform, Blinkit’s rapid expansion, and operational efficiencies, though it faces challenges from competition and high expansion costs.

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