Zomato Q2FY25 results

Zomato Q2FY25 Results Preview: Revenue and Profit Surge Expected

Zomato, the online food delivery giant, is gearing up to announce its financial results for the July-September period (Q2FY25) on Tuesday, October 22. This quarter is highly anticipated, with analysts predicting substantial growth in both revenue and net profit, signaling continued momentum in the company’s expansion strategy.

Analysts Expect Strong Performance

According to market experts, Zomato is poised to deliver robust profit and revenue figures for Q2FY25. The company’s food delivery operations, combined with significant contributions from its Hyperpure and Blinkit divisions, are expected to drive this stellar performance.

Revenue Growth Driven by Multiple Divisions

Brokerage firm Kotak Institutional Equities forecasts a 63% year-on-year (YoY) increase in Zomato’s revenue for Q2FY25. A substantial portion of this growth is attributed to a 37% YoY rise in food delivery revenues. Meanwhile, revenues from Zomato’s Hyperpure division are expected to climb by an impressive 74% YoY, with Blinkit revenues projected to surge by 122% YoY.

In total, analysts estimate Zomato’s Q2FY25 revenue to reach ₹4,644 crore, a sharp rise from ₹2,848 crore in the same quarter last year.

Net Profit and ARPU Expansion

Zomato’s net profit is expected to see notable growth this quarter. The revenue increase is driven by a 4.1% YoY rise in the number of paying suppliers, coupled with a 13.5% YoY boost in average revenue per user (ARPU), indicating enhanced customer engagement and spending.

Impressive EBITDA Margin Growth

Kotak Institutional Equities projects Zomato’s EBITDA to reach ₹238.9 crore, a stark contrast to the loss of ₹47 crore reported in the same period last year. The EBITDA margin is expected to improve significantly to 5.1% YoY, compared to the negative 1.7% margin recorded in Q2FY24. Looking ahead, analysts expect the EBITDA margin to rise even further, reaching 5.7%.

Investor Focus on Management Commentary

As Zomato announces its Q2FY25 results, investors will be eager to hear management’s commentary, particularly concerning Zomato’s plans for its Blinkit division and updates on the progress of its ‘District’ scale-up strategy. This guidance will be crucial in understanding Zomato’s long-term growth trajectory.

Zomato’s Q1 FY25 Performance

In Q1 FY25, Zomato posted impressive results, reporting a 74% YoY increase in consolidated revenue to ₹4,206 crore, marking an 18% QoQ growth. The company’s gross order value (GOV) saw a 53% YoY jump, totaling ₹15,455 crore.

Net profit for Q1 FY25 came in at ₹253 crore, a significant increase from the ₹2 crore reported in Q1 FY24. Zomato’s food delivery GOV surged by 27% YoY, while its quick commerce GOV (via Blinkit) skyrocketed by 130% YoY, and going-out GOV grew by 106% YoY.

Meanwhile, Zomato’s B2B division, Hyperpure, reported an astounding 96% YoY revenue growth, with continuous improvements in profitability.

Conclusion:

As Zomato approaches its Q2FY25 results announcement, expectations are high. With robust revenue growth in key divisions like food delivery, Hyperpure, and Blinkit, the company is well-positioned for continued success. Investors will be closely watching management’s guidance on future strategies, especially around its growing divisions and scale-up plans. The performance of these sectors will likely determine whether Zomato can sustain its impressive growth momentum through FY25 and beyond.