Zomato's shares drop 13% due to Q3 profit decline and competition from Blinkit

From Investing.com: 2025-01-21 00:49:45

Zomato Ltd’s shares plunged after reporting a 57% drop in net profit to 590 million rupees for the December quarter, missing estimates. The decline was driven by stiff competition in the quick commerce sector, particularly from rivals like Swiggy’s Instamart and new entrants like Flipkart and Amazon.

Despite overall revenue growth to 54.05 billion rupees, Zomato’s earnings were hit by aggressive discounts in their Blinkit unit to combat competition. The platform, a key growth driver, faced intense rivalry in the quick commerce space, leading to shrinking profit margins and increased pressure on profitability.



Read more at Investing.com: Zomato stock slides 13% on Q3 earnings slump, Blinkit competition By Investing.com