Zomato Q3 Results Preview: Revenue may jump 66% YoY; rapid store additions to aid Blinkit growth

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Food delivery company Zomato Ltd is likely to see solid year-on-year (YoY) growth, driven by strong operating performance and sustained momentum in its quick commerce and Hyperpure businesses.Revenue from operations in the third quarter is expected to grow 66% YoY, according to the average estimate of four brokerages, while profit after tax (PAT) may increase 55% YoY.

EBITDA for the quarter is projected to rise nearly 4x YoY, but may decline sequentially due to higher ESOP costs.
Blinkit is projected to post solid numbers, with revenues likely to more than double, driven by rapid store additions during the October-December 2024 period.

Here’s what to expect from Zomato Q3 results

Nuvama

Zomato is expected to deliver 14% QoQ and 66% YoY revenue growth. Food delivery is projected to grow 21% YoY, while Blinkit is set to surge 110% YoY. The consolidated EBITDA margin is likely to contract by 60 bps QoQ, driven by higher competitive intensity in the quick commerce segment.


Kotak Equities

We expect 3QFY25 revenue growth to come in at 62% YoY, driven by 24% YoY growth in food delivery revenues, 83% YoY growth in Hyperpure revenues, and 124% YoY growth in Blinkit revenues. The sharp 114% YoY and 24% QoQ GMV growth in Blinkit will be driven by rapid store additions and an increase in AOV.

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Motilal Oswal

The GOV for the food delivery and quick commerce businesses is expected to grow 22% and 113% YoY, respectively, with take rates of 21% and 19%, driving overall revenue growth of 66% YoY in 3QFY25.

For the food delivery business, the adjusted EBITDA as a % of GOV margin is expected to inch up 10bps QoQ to 3.6%.

Blinkit is likely to post a contribution margin of 3.7% and an adjusted EBITDA margin of -0.1% in 3Q.

The outlook on Blinkit, its growth, and margins are the key monitorables.

JM Financial

In food delivery, we forecast sequential GOV growth of 3.9%. We expect take-rates to expand to 21.3% in 3QFY25, compared to 20.8% in 2QFY25. We anticipate adjusted EBITDA margin expansion of 40bps sequentially.

In Blinkit, we expect sequential GOV growth of 22.2%, led by a robust 19% increase in order volumes. Take-rates are expected to reach 18.8%, down from 18.9% in 2Q. We foresee the contribution margin contracting to 2.5% (as a % of GOV), compared to 3.8% in 2Q.

At a consolidated level, after factoring in ESOP costs of Rs 207 crore versus Rs 179 crore last quarter, we expect reported EBITDA to decline to Rs 201 crore from Rs 226 crore in 2Q, while PAT is expected to grow to Rs 198 crore due to higher other income.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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