India’s leading food-tech and hyperlocal delivery company,announced its Q1 FY2025 earnings, and the results show significant progress in profitability, operational efficiency, and business consolidation. Particularly, Zomato’s newly defined “Eternal” business segment—which includes food delivery, Blinkit (quick commerce), and Hyperpure (B2B supplies to restaurants)—has drawn widespread attention from analysts and investors.
Zomato’s vision to build an “eternal” company—one that outlives generations and continues to innovate—is now showing up in its numbers. Let’s dive into a detailed analysis of the company’s performance, what it means for the future, and the key highlights from Q1 FY25.
What Is the “Eternal” Business?
Before we explore the financials, it’s important to understand what classifies under its “Eternal” business:
- Food Delivery – The core business of ordering food through the Zomato platform.
- Blinkit – Quick commerce vertical delivering groceries, daily essentials, and more in under 10–20 minutes.
- Hyperpure – B2B supply chain solution that provides high-quality ingredients and kitchen supplies to restaurants.
These three pillars form the foundation of long-term vision, focusing on daily consumption and high-frequency use cases.
Financial Highlights – Q1 FY2025
Zomato reported a consolidated net profit of ₹36 crore, marking its second consecutive profitable quarter, a significant milestone for a tech company operating in high-burn sectors like quick commerce and logistics. Here’s a breakdown of key metrics:
| Metric | Q1 FY25 | Q1 FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹3,542 crore | ₹2,416 crore | +46.6% |
| Net Profit | ₹36 crore | Loss of ₹207 crore | – |
| Adjusted EBITDA | ₹194 crore | ₹2 crore | Massive improvement |
| EBITDA Margin | 1.8% | 0.1% | Improvement |
| Blinkit Revenue | ₹769 crore | ₹333 crore | +131% YoY |
| Hyperpure Revenue | ₹939 crore | ₹621 crore | +51% YoY |
Segment-wise Performance
1. Food Delivery
Zomato’s core food delivery business grew at a steady 18% YoY and remains the cash cow of the company. Despite growing competition from Swiggy and newer players like ONDC, Zomato has maintained market leadership and expanded margins through better cost control, higher delivery fee realization, and increased order frequency.
Key takeaways:
- Adjusted EBITDA margin for food delivery reached 6.5%, up from 4.7% in Q4 FY24.
- Gold membership program continues to boost customer retention.
- Average order value (AOV) increased slightly, with more users opting for premium meals.
2. Blinkit (Quick Commerce)
Arguably the star of the Q1 results, Blinkit’s revenue surged by 131% YoY, driven by aggressive expansion, increased order volumes, and better unit economics. Blinkit has scaled up rapidly in top metros, with focus on Tier 1 and Tier 2 cities next.
Operational Highlights:
- Blinkit turned contribution break-even in Q1.
- Order volumes grew approximately 100% YoY.
- Average delivery time: less than 10 minutes in most cities.
- Expanded to 526 dark stores, with increased focus on store-level profitability.
Zomato management reiterated their confidence in Blinkit turning EBITDA-positive in the next 3–4 quarters, making it one of the most promising growth engines in their portfolio.
3. Hyperpure
Hyperpure, Zomato’s B2B restaurant supply platform, posted robust growth at 51% YoY, with revenues crossing ₹900 crore. The platform now supplies to over 50,000 restaurant partners and continues to expand its footprint across new cities.
Key drivers:
- Greater adoption by small and medium restaurants.
- Improved backend infrastructure.
- Focus on better SKU-level margins and warehouse efficiency.
Hyperpure has strong synergies with Zomato’s food delivery ecosystem, ensuring reliable quality and availability of ingredients for restaurant partners.
Profitability: A Turning Point
The biggest takeaway from Zomato’s Q1 FY25 earnings is the company’s successful transition to profitability—without compromising on growth.
- Zomato turned EBITDA-positive for the first time across all three “eternal” segments combined.
- Overall EBITDA of ₹194 crore with positive net profit.
- Operating cash flow improved significantly.
This marks a key inflection point where Zomato is now proving it can scale responsibly, a metric that investors have long prioritized over blind growth.
Stock Market Reaction
Zomato’s stock surged over 5% post-results, hitting a new 52-week high, and reflecting growing investor confidence. Analysts are revising target prices upward, with several brokerage firms calling Zomato a “long-term compounder.”
Zomato’s market cap now comfortably exceeds ₹1.4 lakh crore, with potential for further re-rating as Blinkit nears profitability.
Strategic Updates and Future Outlook
1. No New International Expansion Plans
CEO Deepinder Goyal mentioned that Zomato is focused on deepening its India presence rather than exploring international markets, at least in the short term. The idea is to dominate India’s rapidly growing consumption economy before expanding globally.
2. IPO for Blinkit?
Zomato indicated that Blinkit could be listed separately in the future once it turns fully profitable. Investors are eagerly watching this space, as Blinkit is becoming a dominant force in Indian quick commerce—potentially rivaling Zepto and Swiggy Instamart.
3. Focus on Efficiency
Zomato has laid clear focus on:
- Increasing delivery partner productivity.
- Using AI to optimize routes and inventory in Blinkit.
- Expanding Hyperpure with a focus on SKU-level data analytics.
These measures will help further reduce cost per order and improve margins across verticals.
Challenges Ahead
Despite the strong performance, Zomato faces some challenges:
- Competitive Pressure – Swiggy, ONDC, and Zepto are investing heavily in food delivery and q-commerce.
- Customer Retention – While order volumes are growing, Zomato must ensure repeat usage amid rising delivery fees.
- Regulatory Risk – The Indian government is evaluating GST implications on platform service fees and dark store operations.
However, Zomato seems well-positioned to tackle these issues, thanks to a strong balance sheet and data-led operations.
Conclusion: Building an “Eternal” Company
Zomato’s Q1 FY2025 results mark a defining moment in its journey—from a loss-making unicorn to a sustainable, profitable tech powerhouse. With Blinkit firing on all cylinders, Hyperpure scaling efficiently, and food delivery continuing to dominate, Zomato has all the right ingredients for long-term success.
Their “Eternal” strategy isn’t just a buzzword—it’s a well-executed plan to create lasting consumer value in India’s growing digital economy.
If Zomato maintains this momentum, it may well become the first Indian tech company to achieve durable profitability at scale across three verticals.
