As the financial year wraps up, Zomato (branded as Eternal) has unveiled its Q4 FY25 earnings—and the results are a tale of bold bets, sharp pivots, and long-term ambition. While profits plunged, revenue soared, and the company made decisive moves that could shape its future in both food delivery and quick commerce.
In this article, we’ll dive into Zomato’s Q4 FY25 results, explore the reasons behind its profit decline, the rapid rise of Blinkit, and the company’s strategic shifts for long-term growth.
Credits: Money Control
Profit Slips 78%, But Revenue Surges 64%
Zomato reported a 78% year-on-year decline in net profit to ₹39 crore for Q4 FY25, down from ₹175 crore in the same period last year. However, revenue from operations surged by 64% YoY to ₹5,833 crore, indicating robust topline momentum despite pressure on the bottom line.
The sharp drop in profitability is largely attributed to intensified investments, especially in its quick commerce subsidiary, Blinkit, and strategic realignment within the core food delivery business.
Blinkit Booms: 294 Stores Added in Q4
The star of the quarter? Blinkit.
Zomato’s quick commerce arm recorded its highest-ever quarterly net store addition—294 new locations—taking it a step closer to its goal of 2,000 stores by December 2025. This aggressive expansion shows that Zomato is doubling down on the fast-growing quick commerce market, even if it comes at the cost of short-term profitability.
With Blinkit rapidly scaling and gaining traction in urban centres, the company is signaling a clear shift in focus from pure food delivery to a broader commerce ecosystem.
Strategic Shutdown: Zomato Quick and Everyday Services Axed
In a surprising but pragmatic move, Zomato announced the shutdown of two experimental services:
- Zomato Quick (15-minute food delivery)
- Zomato Everyday (home-style meal delivery)
Explaining the decision, CEO Deepinder Goyal stated,
“The current restaurant density and kitchen infrastructure are not optimized for 10-minute delivery. We couldn’t deliver consistent customer experience, and there wasn’t incremental demand.”
As for Everyday, it failed to scale beyond a niche use case among office-goers in metro cities. Goyal added that the company didn’t see enough return on investment to justify keeping it alive at a small scale.
These shutdowns reflect a maturing Zomato—one that is not afraid to fail fast, trim the fat, and focus on high-ROI verticals.
Leadership Speaks: Profit Takes Back Seat to Market Share
While the drop in profit may raise investor eyebrows, Zomato’s leadership remains unfazed.
CFO Akshant Goyal was candid:
“Short-term profitability is not our goal. We are focused on growing market share in a highly competitive environment.”
Echoing the sentiment, CEO Deepinder Goyal emphasized that long-term sustainable profitability will follow, provided the company sticks to the right strategic priorities.
He added,
“We’re confident in the profit potential of this business in steady state. The opportunity ahead is still massive.”
This forward-looking approach suggests that Eternal is playing the long game—optimizing for dominance over the next decade rather than quarterly wins.
Competition Still Fierce—but Zomato Is Holding Ground
Despite concerns about the competitive landscape, Goyal reassured stakeholders that Zomato’s market share has remained stable in recent months.
“Competition in food delivery has always been high, and the intensity hasn’t changed much. We’re hoping to drive some share gain going forward,” he said.
As Blinkit scales and Zomato refines its portfolio, the company is clearly betting on consolidation, focus, and disciplined expansion.
What Lies Ahead?
Q4 FY25 may not have pleased everyone in the short term, but Zomato’s results tell a deeper story: a company willing to pivot, trim experiments that don’t work, and invest in where the demand is headed—not where it’s been.
As Blinkit races toward 2,000 stores and Zomato fine-tunes its core delivery business, investors and analysts alike will be watching closely to see if this bet on the future pays off.
