Zomato Q2 results preview: Analysts say PAT may grow multiple times, revenue to soar 63%

Online food delivery company Zomato will announce its financial results for the July-September period (Q2FY25) on Tuesday, October 22.

Food delivery major Zomato is expected to post significant revenue and net profit growth in the ninth quarter of fiscal 2024-25, according to experts.

Analysts expect the company to report strong profit and revenue figures for the second quarter of fiscal 2025, driven by expansion in its food delivery business. In addition, revenue growth in the Hyperpure and Blinkit divisions may further fuel the company’s strong second-quarter results.

net profit and revenue

Brokerage firm Kotak Institutional Equities expects revenue to grow 63% year-on-year in the second quarter of fiscal 2025, mainly due to a 37% year-on-year increase in food delivery revenue.

Additionally, Hyperpure revenue is expected to grow 74% year over year, while Blinkit revenue is expected to grow 122% year over year. Kotak analysts expect total second-quarter revenue to be $4,644 crore, higher than $28.48 billion in the same period last year, an increase of 63%.

They also forecast revenue to grow 18.2% year-over-year, driven by 4.1% year-over-year growth in the paid provider base and 13.5% year-over-year average revenue per user (ARPU) growth.

Earnings before interest, taxes, depreciation and amortization

The brokerage further forecasts EBITDA to reach $238.9 Crores, compared to loss of Rs. $Year-on-year (YoY) Rs 47 crore. EBITDA margin is expected to be 5.1% year-over-year, compared with a negative margin of 1.7% in the previous year.

EBITDA margin is expected to improve to 5.7%, compared with a 1.7% decline in the same period last year.

During the second-quarter results announcement, investors will be eager to hear management’s comments and guidance on the Zomato or Blinkit businesses, as well as an update on the progress of the “District” expansion strategy.

Zomato Q1 FY2025 results

Zomato reported consolidated revenue growth of 74% year-on-year to reach $42.06 billion, a month-on-month increase of 18%. The company’s gross order value (GOV) increased 53% in the quarter, totaling $15,455 Crores.

Net profit for the first quarter was $253 crore, a huge jump from Rs. $2 Crore reported in Q1FY24. During the same period, takeout GOV increased by 27% year-on-year, express business GOV soared by 130% year-on-year, and out-of-home GOV increased by 106% year-on-year.

Zomato’s B2B division Hyperpure’s revenue increased by 96% year-on-year and profitability continued to improve.