Zomato Shares Plunge Amid Disappointing Q3 Results and Cautious Outlook; Swiggy Faces Similar Setback.
Zomato’s rapid expansion of Blinkit, its quick commerce business, has increased losses and affected its net profit for the third quarter. Although the market reacted negatively to Zomato’s Q3 results, causing a drop in its share price, analysts remain confident in the company’s ability to execute its plans effectively and achieve long-term growth.
Zomato’s share price took a significant hit on Tuesday, January 21, following the announcement of its December quarter (Q3 FY25) results. The stock dropped by as much as 13.3%, reaching ₹207.80 on the NSE.
On Monday, Zomato, which also owns Blinkit, reported a sharp 57.2% decline in its consolidated net profit, which stood at ₹59 crore for the third quarter. This was a major drop compared to the ₹138 crore profit it earned in the same quarter last year.
The company’s revenue from operations did grow, reaching ₹5,405 crore in Q3 FY25, up from ₹3,288 crore in the same period the previous year. However, its expenses also saw a sharp rise, jumping to ₹5,533 crore during the quarter, compared to ₹3,383 crore in the corresponding period of 2023-24.
This combination of rising costs and declining profits has raised concerns among investors, leading to a sell-off in Zomato shares.
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