Zomato shares plunge over 7% on PAT fall, food business slowdown

Zomato shares on Monday plunged over 7% to end the session at Rs 230.70 on the NSE after the company reported weaker-than-estimated December quarter earnings while admitting to a slowdown in its food delivery business.

“Our 20%+ YoY GOV growth guidance for the food delivery business is more longer-term. There will be periods of higher and lower growth along the way. Currently, we are going through a broad-based slowdown in demand, which started during the second half of November. Notwithstanding the current slowdown, we are positive about a recovery soon and remain confident of the long-term outlook of 20%+ yearly GOV growth in the business given the strong fundamentals,” Zomato's letter to the shareholders read.

Also Read: Zomato shares crack 9% after Q3 PAT falls 57% YoY. Should you buy, sell or hold?


The food delivery company on Monday reported a 57% fall in its December quarter consolidated net profit at Rs 59 crore versus Rs 138 crore reported in the year-ago period. On a sequential basis, the profit after tax (PAT) was down by 66% over Rs 176 crore reported in Q2FY25.


The earnings were announced towards the end of Monday's trading session and triggered a sell-off amid huge volumes. At the closing time, over 10 crore shares changed hands on the NSE.

The revenue from operations in Q3FY25 stood at Rs 5,405 crore, up by 64% over Rs 3,288 crore in the corresponding quarter of the previous financial year. Meanwhile, the topline was higher by 13% on a sequential basis versus Rs 4,799 crore reported in the July-September quarter.

Zomato's gross order value or GOV of the B2C businesses grew 57% YoY while rising by 14% QoQ to Rs 20,206 crore in Q3FY25.

Also Read: Zomato Q3 Results: Cons PAT falls 57% YoY to Rs 59 crore, revenue surges 64%

On the profitability front, consolidated adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 128% YoY to Rs 285 crore in Q3FY25, largely driven by improvement in food delivery adjusted EBITDA margin (as a % of GOV) to 4.3% compared to 3% a year ago.

On a QoQ basis, consolidated Adjusted EBITDA declined by 14% or Rs 45 crore despite the improvement in food delivery margins. The company attributed the loss to accelerated investments in expanding Zomato's quick commerce store network, where quarterly losses increased by Rs 95 crore QoQ.