Zomato Q3 results: The announcement of this restructuring of the food delivery industry by Zomato (financial statements made available on 20th January 2025) inspired early reshuffling of the food delivery economy for instance when the company revealed a year-on-year contraction of −57% in net profit of ₹59 Crore.
Although the operating revenue demonstrates a significantly high year-on-year growth rate at 64 percent (Rs 5,404 crore), the company faced much greater than anticipated losses in their food and grocery delivery unit Blinkit (total loss of Rs 95 crore), which discouraged the market.
The bad news was reported at 05 a.m. on January 21. This decline in Swiggy’s stock value is a symptom of the general investor pessimism about the future of the food delivery market in which both Zomato and Swiggy are currently the main players.
Why Zomato Share Is Falling Today
Disappointing Q3 results of Zomato have raised concerns among investors. While sales are increasing, the sudden profit demise, halted operations of its Blinkit operation and a series of subsequent losses have driven a selloff. The shares of Zomato plunged by over 7% with the publication of the quarterly report followed by another 10% up to January 21. These reductions have made analysts and commentators ponder the immediate outlook of Zomato and the industry as a whole.
However, Swiggy shares are now down to near the face value of ₹390. The company initially came out at ₹420 on NSE and ₹412 on the BSE in November 2024 followed by a movement of the stock to the highest level of ₹617. But as it is the aftermath of industry distress driven by Zomato, Q3 report, Swiggy, stock at present is way down, by 30% over its high stock price level.
Announcements regarding the third quarter (Q3) earnings of Zomato have sparked a variety of responses among broker communities. Some brokerages remain optimistic about the very high revenue growth opportunity. However, given the need for returns and the general industry problem, investors have become increasingly anxious.
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