Zomato's Q3FY25 ad spend jumps 23.77% to Rs 521 crore

Zomato reported a 23.7% rise in advertisement and sales promotion expenses for Q3FY25, reaching Rs 521 crore, up from Rs 421 crore in the previous quarter. This marks a 39.3% increase from Rs 374 crore in the same quarter last year.

The company reported a significant drop in its net profit for the quarter ending December 2024, which fell by 57.2% to Rs 59 crore, compared to Rs 138 crore in the same period last year. Despite this decline in profit, the food aggregator saw a notable surge in its revenue, which rose by 64.3% to Rs 5,405 crore in Q3 FY25, up from Rs 3,288 crore in the corresponding quarter of the previous fiscal year.

Zomato’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter ending December 2024 rose to Rs 162 crore, a significant improvement from Rs 51 crore in the same period last year. The company also saw its EBITDA margin expand to 3%, up from 1.6% in Q3 FY24.

Blinkit, Zomato’s quick commerce arm, saw a remarkable 117.2% growth in its revenue, reaching Rs 1,399 crore for the October-December quarter, up from Rs 644 crore in the same period last year. Despite this impressive revenue surge, the company reported a net loss of Rs 103 crore for the quarter.

Talking about this, 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 a total of 1,007 stores. The company expects to reach over 2,000 stores soon, with further expansion plans to be clarified as they get closer to that milestone.