Zomato is poised to announce its Q2 results for FY 2024-25 on October 22, 2024, with analysts predicting a remarkable surge in both revenue and profit after tax (PAT). The online food delivery giant is expected to report a year-on-year revenue increase of approximately 63%, reaching around ₹4,644 crore, compared to ₹2,848 crore in the same quarter last year. This growth is attributed to the expansion of its food delivery operations and strong performance from its Hyperpure and Blinkit divisions.
Anticipated Financial Performance
Experts from Kotak Institutional Equities forecast a 37% rise in food delivery revenues, alongside a staggering 74% increase in Hyperpure revenues and an impressive 122% growth in Blinkit revenues. This projected revenue growth reflects a robust market demand and Zomato’s strategic initiatives to enhance its service offerings. Analysts also expect the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to rebound significantly, estimating it at ₹238.9 crore, compared to a loss of ₹47 crore in the same period last year. The EBITDA margin is anticipated to improve to 5.1%, contrasting with a negative margin of 1.7% from the previous year.
Profit After Tax Projections
The PAT is expected to see an extraordinary increase of up to 749% year-on-year, with estimates suggesting it could reach around ₹305.67 crore, up from ₹36 crore in Q2 FY24. This marks a notable quarter-on-quarter growth as well, with a projected increase of about 20.8% from the ₹253 crore reported in the previous quarter.
Market Reactions and Future Outlook
As Zomato prepares for its earnings announcement, investors are keenly awaiting management’s insights on the performance of its Blinkit business and updates regarding the ‘District’ scale-up strategy. The company’s first quarter results for FY25 already showcased a 74% YoY increase in consolidated revenue, underscoring a positive trajectory that analysts believe will continue into Q2.Overall, Zomato’s anticipated financial results reflect not only strong operational performance but also strategic growth initiatives that position it favorably within the competitive landscape of online food delivery services.
(Disclaimer: The views expressed by analysts do not necessarily reflect those of Zomato or its management.)
