Zomato announced its Q2 2025 numbers today, for the quarter ending September 2024, with surge in profits and revenue alike. The company reported an adjusted EBITDA of ₹330 crore, which was up by a staggering ₹289 crore from the ₹41 crore it reported in Q2 of 2024. In terms of net profit too, Zomato reported a 388% jump from ₹36 crore in Q2FY24 to ₹176 crore in Q2FY25.
Gross order value across its platforms reached a mammoth ₹17,670 crore (~$2.1Bn) for the quarter ending September 2024. Accompanying adjusted revenues stood at ₹5170 crore, with an increase across those two figures being 55% and 58% YoY respectively. Segment-wise gross order value breakup stood as below:
- Food delivery GOV grew 21% YoY (5% QoQ)
- Quick commerce GOV grew 122% YoY (25% QoQ), and
- Going-out GOV grew 171% YoY (46% QoQ); like-for-like GOV grew 139% YoY (29% QoQ)
While the food delivery business is experiencing continued growth as more people in India start ordering out, the company has given a stable outlook, with nothing new coming up in that space. Commenting on the same, Zomato CFO Akshant Goyal said, “The business remains steady and continues to grow well”.
In terms of cash balance, the company saw a reduction of ₹1726 crore, most of it on account of the Paytm events business purchase. The cash balance still remains a healthy ₹10,813 crore (~$1.28Bn). Notably, Zomato’s board is expected to approve a ₹8,500 crore QIP plan as well, which would significantly boost company’s cash situation.
Despite a strong cash balance situation, Zomato CEO Deepinder Goyal explained why the company is going for a ₹8,500 crore QIP. “While the business is now generating cash (vis-a-vis a loss making business at the time of IPO), we believe that we need to enhance our cash balance given the competitive landscape and the much larger scale of our business today”.
The timing of the QIP seems peculiar, considering how Swiggy — Zomato’s biggest rival — is finally preparing for a long delayed, massive $2Bn+ IPO. “We would like to reiterate that (a) the quick commerce business continues to operate at near Adjusted EBITDA break-even (b) our food delivery business margins continue to remain steady and (c) there is also no plan for any minority investments or acquisition. The fund raise is meant to strengthen our balance sheet at this point”, Goyal added.
