Zomato Q4 Report: Revenue Up, But Profit Takes a Sharp Hit

Zomato Q4 Report: The once dead Eternal Ltd, Zomato, has witnessed its net profit plunge sharply in the March 2025 quarter. Though revenues have surged spectacularly, the firm suffered a YoY net profit fall of 78% as it incurred much higher levels of expenditure on Blinkit expansion and infrastructure enhancement.

Q4 Financial Performance

Net profit of Eternal fell to ₹39 crore from a steep decline of ₹175 crore in Q4 FY24. Operating revenue, however, saw a humongous 64% YoY growth at ₹5,833 crore from ₹3,562 crore in the previous quarter. While top line grew aggressively, expense grew by a humongous 68% to ₹6,104 crore, which had a humongous big impact on profitability.

Blinkit Expansion and Increased Costs

Eternal’s Q4 topline was most impacted by its growth-at-all-cost strategy for Blinkit, its quick commerce business. It opened 294 new Blinkit stores, the best it has done so far. But nearly 40% of the new stores are non-operational, and that has incurred operating expenses. Eternal also lost one million square feet of new warehousing space to fund the future growth size of Blinkit.

Core Food Delivery Business Remains Steady

While net profit declined, food delivery business of Eternal continued at a Gross Order Value (GOV) of ₹8,439 crore, a growth of 6% quarter-on-quarter. Food delivery business saw the Adjusted EBITDA margin to grow to 5.7% due to larger average order sizes and enhanced logistics efficiency.

Market Reaction and Future Outlook

In response to the earning announcement, shares of Eternal shifted after analysts lowered estimates based on diminishing near-term profitability. Aside from all of that, however, management has reason to feel optimistic about growth over the long haul of Blinkit and steadiness in ordering food. Shareholders will keep watching and waiting for how well the company holds down costs and expands.

Also Read: Blinkit in Trouble? Zomato Raises Red Flag

Eternal’s Q4 report puts the growth vs. profitability issue in sharp relief. While top-line expansion has been strong, elevated operating expenses have kept net income in the doldrums. As the company continues to streamline its business model, market analysts will be watching its financial path and long-term sustainability.