Zomato shares surge 12 per cent after strong Q1 performance

Mumbai, Aug 2 (IANS) Food delivery giant Zomato's share rose 12 per cent after the company reported strong Q1 results.

At 12.23 p.m., Zomato's share was up 12.34 per cent at Rs 263. In today's trading session so far, Zomato shares have touched a high of Rs 278 and a low of Rs 243.

Zomato shares have been buzzing for the last one year. Food delivery giant shares surged 206 per cent in the last year. It has given returns of 109 per cent since the beginning of this year, 81 per cent in the last six months and nearly 25 per cent in the last month.

Zomato on Thursday posted over 126 times growth in net profit to reach Rs 253 crore in the April-June quarter (Q1 FY25), from Rs 2 crore in net profit in the same quarter last year.

The Deepinder Goyal-run company reported 74 per cent growth (year-on-year) in revenue to Rs 4,206 crore in Q1 FY25.

Zomato's gross order value (GOV) has increased by 27 per cent to Rs 9,264 crore in Q1 of the financial year 2024-25. Quick commerce company Blinkit's gross order value (GOV) rose 130 per cent to Rs 4,923 crore, compared to the year-ago period.

"There is an opportunity to further expand our going-out offering, building on top of our dining-out business. Additional use cases for customers in the going out space include - movies, sports ticketing, live performances, shopping, staycations etc. some of which we have already launched," said Goyal.

"If we execute this well, we see going out becoming the 3rd large B2C business emerging out of Zomato," he added.

The company aims to get to 1,000 Blinkit stores by March 2025 and plans to get to 2,000 stores by the end of 2026 while remaining profitable. Most of these stores will be added to the top 10 cities.