Zomato’s ad spending jumps 24% as net profit shrinks in Q3 FY25

Zomato's advertisement and sales promotion expenses increased by 23.7% in Q3 FY25, reaching ₹521 crore from ₹421 crore in the previous quarter, and marking a 39.3% rise from ₹374 crore in the same period last year.

The company’s net profit for the quarter ending December 2024 saw a sharp decline of 57.2% to ₹59 crore, compared to ₹138 crore in the same quarter last year. However, its revenue witnessed substantial growth, surging 64.3% to ₹5,405 crore from ₹3,288 crore in Q3 FY24.

Zomato's EBITDA improved significantly to ₹162 crore, up from ₹51 crore in the previous year, with the EBITDA margin rising to 3% from 1.6%.

Blinkit, Zomato’s quick commerce division, experienced an impressive 117.2% revenue growth, reaching ₹1,399 crore in Q3 FY25, compared to ₹644 crore in the same period last year. Despite this, it recorded a net loss of ₹103 crore.

Deepinder Goyal, CEO, Zomato, said, “The losses in our quick commerce business this quarter are largely on account of pulling forward the growth investments in the business that we would have otherwise made in a staggered manner over the next few quarters. As of now, it seems like we will get to our target of 2,000 stores by Dec 2025, much earlier than our previous guidance of Dec 2026.”

Blinkit currently operates 1,007 stores and aims to exceed 2,000 soon, with expansion plans to be finalized as it nears this goal.