The share price of Zomato plummeted 5% on the Bombay Stock Exchange (BSE) Wednesday, marking its third consecutive day of decline. The stock opened at Rs 207.40 apiece, down from its previous close of Rs 214.65, and later hit down to Rs 203.80 per share, a 5.1% drop. Notably, in the last three sessions, including today, Zomato’s stock has witnessed a drop of 18%.
What’s Driving The Zomato Share Price Downwards?
Zomato announced its December quarter (Q3) results on January 20. Since then, the company’s stock has been on a downward spiral. The company’s net profit of third quarter of Fiscal Year 2025 plummeted 57.3% to Rs 59 crore, down from Rs 138 crore in the same period last year.
The decline was even more substantial, as the Deepinder Goyal led company registered the profit of Rs 176 crore in second quarter of Fiscal Year 2025.
Furthermore, the company reported a 64.4% surge in revenue from operations to Rs 5,405 crore in Q3, up from Rs 3,288 crore in the same period last year. Additionally, the gross order value (GOV) of its B2C business, which includes quick commerce, food delivery, and dining out, jumped 57% to Rs 20,206 crore during the quarter.
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Where The Trend Disappointed?
The major disappointment came on the margin front, primarily due to the aggressive store expansion to support Blinkit, its quick-commerce service. Blinkit registered an EBITDA loss of Rs 30 crore. Notably, it was a significant reversal from the Rs 48 crore EBITDA profit in the same period last year. On the other hand, Zomato’s overall EBITDA saw a great increase to Rs 162 crore, up from Rs 51 crore in the year-ago period.
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