Food delivery giant Zomato‘s posted its second-quarter results on Tuesday, which showed its profits skyrocketing by nearly 400%.

What Happened: Zomato posted a net profit of ₹176 crore in the July to September period, compared to ₹36 crore in the same quarter last year. However, net profit fell from ₹253 crore posted in the last quarter. The figure was below the average analysts’ estimate of ₹232 crore.

The company’s revenue from operations stood at ₹4,799 crore in the quarter ended September, representing a 68.5% year-on-year jump from ₹2,848 crore. Sequentially, the topline number grew 14% from ₹4,206 crore. On average, Dalal Street had estimated the revenue to come in at around ₹4,713 crore.

See Also: Varun Beverages Shares Jump 2% As PepsiCo Bottler’s Q2 Net Profit Jumps 22% To ₹620 Cr

Zomato’s food delivery segment clocked in a revenue of ₹2,012 crore in the quarter whereas its quick-commerce arm Blinkit saw its revenue shoot up 129% to ₹1,156 crore from ₹505 crore in the year-ago period.

The board has also approved the company’s plans to raise funds by issuing equity shares through qualified institutional placements, for a total amount of up to ₹8,500 crore.

In August, the food delivery giant acquired Paytm‘s ticketing business to widen its business, for a whopping ₹2,048 crore. The deal encompassed Paytm's entertainment ticketing business, which includes ticketing for movies, sports, and events. Shortly after purchasing the business, Zomato launched a new feature dubbed “Book Now, Sell Anytime” which allows users to sell their tickets on the platform if they are not able to make it to a program they planned.

The company feels pressure from the potential market entry of competitor Swiggy. However, analysts remain optimistic about the firm, as it already outperforms Swiggy in several key metrics. Analysts say Zomato has continued to gain market share from Swiggy from FY22 to 1QFY25, aided by its stronger execution. Its market share has grown from 54% in FY22 to 58% in 1QFY25.

Price Action: Zomato’s shares closed 3.44% lower at ₹256.55 on Tuesday.

Read Next: NBCC Wins New Contracts Worth ₹80 Cr, October Order Inflow Crosses ₹1,500 Cr