Zomato's Q4 Preview: Anticipated 430% Profit Growth Amidst Competition
Eternal Q4 Preview: Will over 400% YoY profit growth help dominate Swiggy?
The Economic TimesImage: The Economic Times
Zomato is projected to report a 180% year-on-year revenue increase and a 430% profit surge for the March quarter, driven by its quick commerce business Blinkit. Despite strong growth, analysts caution about rising competition in the sector, which could impact sustainability.
- 01Zomato's revenue expected to rise 180% YoY.
- 02Profit may increase by 430%, driven by Blinkit's growth.
- 03Food delivery segment shows stable growth with 17-18% YoY increase in net order value.
- 04Blinkit expected to achieve nearly 98% YoY growth, nearing breakeven EBITDA.
- 05Analysts express caution over competition in the quick commerce sector.
Advertisement
In-Article Ad
Zomato is set to report impressive financial results for the March quarter, with revenue projected to increase by 180% year-on-year and profit potentially soaring by 430%. This growth is largely attributed to the performance of its quick commerce business, Blinkit, which is expected to see a 98% increase in net order value (NOV). The food delivery segment remains stable, with a 17-18% YoY growth in NOV and improved margins, driven by effective cost control and enhanced take rates exceeding 21%. Analysts from Bank of America noted that demand in the food delivery market has remained resilient despite economic pressures, with minimal impact from rising costs. Blinkit is anticipated to report a significant turnaround, with contribution margins expected to reach 5%, indicating a move towards profitability. However, analysts remain cautious due to increasing competition in the quick commerce space, which could affect margins and market share sustainability. Key points to watch after the results include insights on Blinkit's profitability timeline and competitive dynamics.
Advertisement
In-Article Ad
Zomato's performance could influence food delivery prices and service availability, potentially affecting consumers' choices and costs.
Advertisement
In-Article Ad
Reader Poll
Do you think Zomato can maintain its growth in the competitive quick commerce market?
Connecting to poll...
More about Zomato
Read the original article
Visit the source for the complete story.




