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Zomato : Gain in FY25


The Indian food-tech giant Zomato made notable strides in Fiscal Year 2025 (FY25). While the bottom line still has challenges, a combination of new subscription offerings, faster delivery options, and expansion into adjacent verticals all point to a platform pivoting for scale.

Here’s a breakdown of the key developments and what they mean for Zomato’s future.

1. Revenue Surge and Expanding Verticals

Zomato reported operating revenues of around ₹ 20,243 crore in FY25, up by roughly 67% year-on-year. Profit after tax (PAT) came in around ₹ 527 crore for the year.

Importantly, while its core food-delivery business remains central, Zomato is aggressively growing its other businesses:

  • The “Hyperpure” B2B supply arm and the quick-commerce unit (via Blinkit) are registering rapid growth.
  • The “Going Out” segment (restaurant discovery, ticketing) is also showing strong momentum.

These diversifications help to de-risk reliance on just food delivery and build scale into more platform-adjacent areas.

2. Subscription Model & Faster Delivery as Differentiators

One of Zomato’s strategic plays has been more premium, value-added services. The newer subscription model—offering exclusive discounts, faster delivery, and priority access—serves multiple purposes: enhancing customer loyalty, improving visibility of higher-margin orders, and locking in recurring revenue streams.

Faster delivery options further raise the bar in competitive markets. As unit economics improve and margins begin to scale, these features help Zomato position itself more strongly versus competitors.

3. Profit & Margin Pressures

Despite strong revenue growth, Zomato’s profitability has been under pressure:

  • In Q3 FY25, net profit dropped ~57% to ₹59 crore, from ~₹138 crore in the same quarter a year earlier.
  • In Q4, net profit fell 77% year-on-year to ₹39 crore.
  • While full-year PAT turned positive, margins remain modest and the cost of growth—logistics, delivery incentives, and dark store expansion—continues to be high.

This indicates that while scale is increasing, the company is still balancing growth investments and profitability. It’s a common pattern for fast-growing platform companies: the top line moves first, margins catch up later.

4. What the Gains Mean for Market Position & Future Outlook

With a market share estimated around 55-58% in food delivery in India, Zomato holds a leadership position. The subscription plus faster delivery model helps deepen engagement with high-value customers, which can increase average order value (AOV) and reduce churn.

By investing into hyperlocal supply chains (via Hyperpure) and quick-commerce (Blinkit), Zomato is building a multi-vertical ecosystem: food delivery, groceries, B2B supply, lifestyle, and ticketing. These adjacent verticals can unlock higher growth, especially as the pure food-delivery market matures.

For the future, success will depend on:

  • Improving unit economics in newer verticals (currently cost-intensive)
  • Retaining high-value subscription users while maintaining overall order volume
  • Efficient scaling of logistics and delivery infrastructure
  • Maintaining customer experience and reliability as the service expands

5. Key Takeaways for Stakeholders

  • For consumers: More options, faster service, and premium subscriptions—offering better value overall.
  • For restaurants/partners: Access to a larger, more frequent customer base; maintaining service quality will be key.
  • For investors/analysts: Zomato is showing credible growth and diversification, but margin expansion remains the key milestone to watch.
  • For competitors: The platform’s broadening footprint means others must not only match in food delivery but also build adjacent capabilities.

Conclusion

Zomato’s FY25 results reflect a company transitioning from pure food delivery into a full-scale platform ecosystem. The gains in revenue, the introduction of subscription models, and faster delivery options point to strategic clarity.

The challenge ahead lies in converting that growth into sustainable profitability. If Zomato can align scale, cost control, and customer experience, it has the potential to lead India’s food-tech market for years to come.