Zomato's stock experienced an 8% decline following the release of its financial results, with management commentary causing concern among investors. The company's leadership highlighted several key points: ## Market Challenges - **Food Delivery**: Gross Order Value (GOV) growth slowed due to weak consumer sentiment. - **Blinkit**: Losses are expected to persist in the short term as the company continues to invest. - **Competition**: Increased competition in quick commerce has temporarily halted margin expansion. ## Q3 Performance Highlights - B2C GOV growth reached 57%, totaling 20,206 Cr. - Food delivery GOV increased by 17% year-over-year (YoY) and 2% quarter-over-quarter (QoQ). - Quick commerce GOV saw significant growth, up 120% YoY and 27% QoQ. - Blinkit's EBITDA loss widened to 103 Cr, compared to 89 Cr YoY and 8 Cr QoQ. ## Future Outlook Zomato has revised its projections and strategies: - **Dark Stores**: Accelerated expansion plan, aiming for 2,000 dark stores by December 2025, earlier than the previous target of December 2026. - **Blinkit Expansion**: Added 216 Blinkit stores in Q3, up from 152 in Q2 FY25. - **Food Delivery Profitability**: Expects Food Delivery EBITDA Margins to stabilize around 5% in the coming quarters. ## District Platform Progress - The District platform has surpassed 6.5 million downloads. - The company anticipates its Going-Out business GOV to maintain a growth rate exceeding 40% annually for at least the next couple of years. These developments indicate both challenges and opportunities for Zomato as it navigates a competitive market landscape and continues to invest in growth initiatives.
Zomato's stock experienced an 8% decline following the release of its financial results, with management commentary causing concern among investors. The company's leadership highlighted several key points:
## Market Challenges
- **Food Delivery**: Gross Order Value (GOV) growth slowed due to weak consumer sentiment.
- **Blinkit**: Losses are expected to persist in the short term as the company continues to invest.
- **Competition**: Increased competition in quick commerce has temporarily halted margin expansion.
## Q3 Performance Highlights
- B2C GOV growth reached 57%, totaling 20,206 Cr.
- Food delivery GOV increased by 17% year-over-year (YoY) and 2% quarter-over-quarter (QoQ).
- Quick commerce GOV saw significant growth, up 120% YoY and 27% QoQ.
- Blinkit's EBITDA loss widened to 103 Cr, compared to 89 Cr YoY and 8 Cr QoQ.
## Future Outlook
Zomato has revised its projections and strategies:
- **Dark Stores**: Accelerated expansion plan, aiming for 2,000 dark stores by December 2025, earlier than the previous target of December 2026.
- **Blinkit Expansion**: Added 216 Blinkit stores in Q3, up from 152 in Q2 FY25.
- **Food Delivery Profitability**: Expects Food Delivery EBITDA Margins to stabilize around 5% in the coming quarters.
## District Platform Progress
- The District platform has surpassed 6.5 million downloads.
- The company anticipates its Going-Out business GOV to maintain a growth rate exceeding 40% annually for at least the next couple of years.
These developments indicate both challenges and opportunities for Zomato as it navigates a competitive market landscape and continues to invest in growth initiatives.