Zomato Q3 Results: Blinkit Remains Loss-Making as Expansion Accelerates

SENSEX 76184.11 345.75 (0.45)

NIFTY 50 23110 85.35 (0.37)

GOLD 81413 140 (0.17)

SILVER 99500 -100 (-0.1)

NASDAQ 19756.78 126.58 (0.64)

FTSE 8391.9 90.77 (1.08)

Nikkei 39646.25 618.27 (1.56)

Crude 6545 1 (0.02)

USD/INR 86.59 0.01 (0.01)

EURO 89.19 -0.01 (-0.01)

POUND 105.96 -0.02 (-0.02)

YEN 0.56 0.01 (1.79)

Zomato Q3 Results: Blinkit Remains Loss-Making as Expansion Accelerates

Blinkit reported an EBITDA loss of ₹30 crore, compared to a positive EBITDA of ₹48 crore during the same quarter last year.

January 20th, 2025 News

Shares of Zomato Ltd., the popular food delivery aggregator, dropped 7.3% on Monday, January 20, closing at ₹230.7 after the company announced its financial results for the December quarter. A major highlight of the report was the continued losses from Zomato’s quick commerce business, Blinkit, as the company ramps up its expansion plans.

Key Highlights

EBITDA Losses: Blinkit reported an EBITDA loss of ₹30 crore for the December quarter, a stark contrast to a positive EBITDA of ₹48 crore during the same period last year.
Store Expansion: Blinkit reached 1,000 stores this quarter, with plans to double this number by the end of the year, advancing its initial December 2026 target.
GOV Growth: Despite the losses, Blinkit posted a robust Gross Order Value (GOV) growth of 117% for the quarter, and the company expects this figure to remain above 100% for FY2025 and FY2026.
Short-Term Challenges: Management acknowledged that the accelerated expansion would result in under-utilized stores, impacting profits over the next one or two quarters.
Profitability Outlook: Zomato remains optimistic about Blinkit turning profitable in the long term as a larger proportion of its operations transition to mature stores.

Management Commentary

In its letter to shareholders, Zomato confirmed that Blinkit is likely to remain loss-making in the near term due to the financial strain of accelerated investments in store expansion.

“Yes, we do,” the letter said, in response to whether losses will persist in the short term. The company explained that the growing network of stores will carry under-utilized capacity, leading to short-term profitability challenges.

However, Zomato expressed confidence that these investments would pay off in the future. Once the network comprises a higher proportion of mature stores, Blinkit is expected to pivot sharply toward profitability.

Road Ahead

The company remains focused on disciplined expansion while navigating competition in the quick commerce space. As Blinkit advances its target of doubling its store count, the management is betting on significant GOV growth and long-term profitability.

For investors, Zomato's Q3 results present a mixed bag—highlighting strong GOV growth tempered by near-term losses in the quick commerce business. The stock market’s reaction underscores the challenges ahead as the company balances expansion with profitability.