One of the New Age stocks engaged in online food delivery is in focus after reporting a revenue increase of 68.50 percent to Rs 4799 crore and a net profit increase of 388.89 percent to Rs. 176 crore in the second quarter of the financial year 2025
Price Movement
In Wednesday’s trading session, Zomato Limited’s share price closed at Rs. 256.20 per share, plunged by 3.58 percent from its previous close of Rs. 265.70 each. The market capitalization now stands at approximately Rs. 2,26,336.69 crore as of October 22, 2024.
Q2 FY25 Result Walkthrough:
Zomato Limited has shown a significant increase in revenue and net profit in the recent quarter of September 2024. According to its recent filing, in the quarter ending September 2024, Zomato Limited’s consolidated revenue from operations has increased by 68.50 percent YOY, from Rs. 2848 crore in Q2 FY24 to Rs. 4799 crore in Q2 FY25.
Furthermore, the company revenue has increased by 14.1 percent from Rs. 4206 crore as compared to the previous quarter of FY2025.
The company’s consolidated net profit has increased by 388.89 percent YOY, from Rs. 36 crore in Q2 FY24 to Rs. 176 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 30.43 percent QoQ from Rs. 253 crore.
Zomato Limited’s EPS has improved by 400 percent YOY, from Rs. 0.04 in Q2 FY24 to Rs. 0.20 in Q2 FY25, and has dropped from Rs. 0.29 in Q1 FY25.
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Segment Analysis of Zomato Limited
Zomato Limited has expanded its operations to include food delivery and going out (Zomato App), quick commerce (Blinkit), and B2B supplies (Hyperpure). The food ordering and delivery segment has earned revenue of Rs 2,012 crore, which is 41.93% of the entire revenue of Q2 FY25.
In Quick Commerce (Blinkit) segments, the company has earned revenue of Rs. 1,156 crore, which is 24.09 percent of the total revenue. The hyperpure supplies (B2B business) has earned revenue of Rs. 1,473 crore, which is 30.69 percent of the revenue.
Lastly, Zomato has earned a revenue of Rs. 154 crore, which is 3.21 percent of total revenue, and other businesses of Rs 4 crore, which is 0.083 percent of revenue for Q2 FY25.
Target Price:
● Motilal Oswal Financial Services also holds a positive view with a target price of Rs 320, reflecting confidence in Zomato’s growth trajectory amid increasing industry volumes.
● Bernstein has raised its target price to Rs 330 while emphasizing Zomato’s strong positioning in the evolving quick commerce sector.
● Jefferies has maintained a target price of Rs 335. Zomato’s strategic initiatives in food delivery could enhance its franchise value and revenue growth over the next few years
About the company
Zomato Limited was founded in 2008 by Deepinder Goyal and Pankaj Chaddah. The company is an Indian multinational food delivery and restaurant aggregator platform. Initially launched as FoodieBay, it rebranded to Zomato in 2010. The platform enables users to search for restaurants, order food, book tables, and make payments. Zomato connects millions of users with over 1,000 cities restaurants and delivery personnel across India, serving more than 90 million users.
The company operates several segments, including India Food Ordering and Delivery, Hyperpure Supplies, and Quick Commerce. Zomato also offers a subscription service called Zomato Pro, providing exclusive dining discounts. With a commitment to innovation and customer engagement, Zomato continues to expand its services internationally while enhancing the food delivery experience for millions of users.
Written By – Nikhil Naik
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