The net profit declined to Rs 39 crore in the fourth quarter of the fiscal year 2025 (Q4FY25) from Rs 175 crore in Q4FY24
Food delivery company Eternal (formerly Zomato) has marked a 78 per cent dip in its consolidated net profit on a year-on-year (YoY) basis in the fourth quarter of the financial year 2025 (Q4FY25) on higher expenses. The net profit declined to Rs 39 crore in Q4FY25 from Rs 175 crore in Q4FY24.
The financial results of the company revealed a 68 per cent jump in total expenses, which rose to Rs 6,104 crore during the quarter. However, the consolidated revenue from operations rose 64 per cent YoY to Rs 5,833 crore during the recently concluded quarter from Rs 3,562 crore in the corresponding period of the previous fiscal.
The company attributed the dip in profit to the accelerated investments in expanding its quick commerce vertical, Blinkit, as well as enhanced infrastructure costs across other segments. On the profitability front, consolidated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) declined 15 per cent YoY to Rs 165 crore in Q4FY25.
The consolidated adjusted revenue of the company’s food delivery segment rose to Rs 2,409 crore during Q4FY25 from Rs 2,050 crore in Q4FY24, registering a 17 per cent uptick on-year. The quick commerce business of the company marked a 122 per cent rise in its consolidated adjusted revenue, which rose to Rs 1,709 crore during the recently concluded quarter. The same revenue for the going out segment rose 146 per cent YoY to Rs 229 crore.
“We think there are three key reasons behind the current slowdown in food delivery: The sluggish demand environment (especially on discretionary spends), the shortage (temporary) of delivery partners due to high demand of delivery partners in quick commerce, given the rapid expansion of the industry in the last few months and competition from quick delivery of packaged food from quick commerce leading to drop in demand for food delivery from restaurants,” On the slowdown in food delivery, Deepinder Goyal, Zomato’s Chief Executive Officer (CEO) highlighted in the shareholders letter.
On a full-year basis, the company’s net profit rose to Rs 527 crore in FY25, as compared to Rs 351 crore in FY24. The revenue from operations, too, marked an uptick to reach Rs 20,243 crore in FY25 from Rs 12,114 crore in FY24.
