Zomato’s said on Thursday its net profit shot up over 100 times in the first quarter of the financial year.

What Happened: The food delivery platform posted a net profit of ₹253 crore in the quarter ended June 30, up from the ₹2 crore it had earned a year earlier. The figure beat analyst expectations of ₹208 crore.

It was also a 44.6% increase from the ₹175 crore it made in the fourth quarter of FY24.

The company’s revenue figure came in at ₹4,206 crore, which was 74% higher than the ₹2,416 crore it posted in the same quarter last year. The figure beat street expectations of ₹3,913 crore.

Sequentially, the topline number grew 18% from the ₹3,562 crore earned in the preceding quarter.

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Quick-commerce arm Blinkit’s revenue shot up to ₹942 crore, up from ₹769 crore in the quarter ended March, with an EBIT of ₹43 crore. Adjusted EBITDA for the segment was close to breakeven, posting a loss of ₹3 crore for the quarter, narrowing from a loss of ₹37 crore in the fourth quarter.

The company said Blinkit aims to get to 2,000 stores, latest by the end of 2026 while remaining profitable.

Quick commerce’s gross order value (GOV) went up to ₹4,923 crore versus ₹4,027 crore in the preceding quarter. Meanwhile, its contribution margin as a percentage of GOV inched up to 4% from 3.9% quarter on quarter.

Meanwhile, the food delivery segment added ₹1,942 crore to the topline, up from ₹1,739 crore quarter-on-quarter. GOV climbed to ₹9,264 crore from ₹8,439 crore in Q4, while contribution margin shrank 20 basis points to 7.3%. the company acknowledged the dip and said it expects minor fluctuations to continue going forward as well, driven by seasonality and multiple other factors.

While the adjusted EBITDA margin in food delivery stood at 3.4%, The company said it remains on track to hit 4%-5%.

Zomato and competitor Swiggy, which is set to list on the bourses soon, have been steadily hiking platform fees since last year as they look to leverage their large customer bases and turn their focus to profitability. Last month both platforms jacked up their platform fees to ₹6, and most analyst expects further hikes in the offing.

However, Zomato’s big bet on Blinkit may face growing competition amid reports last month that Walmart-backed Flipkart was launching a number of dark stores, intensifying competition in the quick-commerce segment. 

Price Action: Zomato’s share price went up 1.56% to ₹233.03 following the results.

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