Zomato Owner Beats Profit Estimates on Delivery, Quick-Commerce Growth

India’s Zomato parent, Eternal, reported stronger-than-expected quarterly profit, driven by steady demand in its core food delivery segment and rapid expansion in quick commerce. Budget-friendly meals and improved cost controls helped boost performance, while net order value in the food delivery business rose 18.8% year-on-year, marking a third consecutive quarter of growth.

The company said margins remained stable despite concerns that rising fuel costs—linked to global energy disruptions—could impact operations. CFO Akshant Goyal noted that moderate cost increases are typically passed on without hurting demand, supported by platform fees and targeted discounts for price-sensitive users. Efficiency gains and higher revenue per order further supported margins across both segments.

Meanwhile, quick-commerce arm Blinkit continued to be a major growth driver, expanding its store network by nearly 10% to over 2,200 locations. Despite stiff competition from players like Amazon, Flipkart, Reliance Retail, Swiggy, and Zepto, Eternal expects the segment to grow over 60% annually in the coming years. Quarterly revenue rose sharply to 172.92 billion rupees, though slightly below estimates, while net profit reached 1.74 billion rupees, surpassing expectations.

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