Q1 Performance Overview
- Revenue surged 70% YoY to ₹7,167 crore in Q1 FY26.
- Net profit plummeted 90% YoY, falling from ₹253 crore in Q1 FY25 to just ₹25 crore.
- Despite the steep profit drop, Zomato’s stock rose nearly 8% following the results, reflecting investor confidence in the growth trajectory.
🚀 What’s Behind the Revenue Jump?
- The revenue growth was driven by expansion in both food delivery and quick-commerce businesses.
- Blinkit, Zomato’s quick-commerce arm, posted a remarkable 127% YoY growth in Net Order Value, reaching ₹9,203 crore—now surpassing the core food delivery business (₹8,967 crore).
🧾 Why Profit Fell Despite High Revenue
- Heavy investments into Blinkit’s infrastructure, technology, and logistics, fueling rapid expansion.
- Increased operating and marketing costs to defend market share amid tough competition from rivals like Swiggy and Zepto.
- Ongoing investments in new verticals, including Zomato’s “going-out” segment and Blinkit’s inventory control model.
🔍 Market Reaction & Outlook
- Shares climbed about 8%—a sign that investors are prioritizing growth over near-term profitability, betting on Zomato’s long-term strategy.
- Blinkit’s dominance in NOV signals its rising importance, pivoting Zomato toward a diversified revenue structure.
- Despite the profit dip, the company’s strong cash flow and balance sheet support continued investment in strategic growth areas. The Economic Times
📌 Summary Table
| Metrics | Q1 FY26 | Q1 FY25 |
|---|---|---|
| Revenue Growth | +70% to ₹7,167 crore | – |
| Net Profit | ₹25 crore (↓90%) | ₹253 crore |
| Blinkit NOV Growth | ₹9,203 crore (↑127%) | ₹8,967 crore in food delivery |
| Stock Reaction | +8% after results | – |
🧭 What Investors Should Watch
- Blinkit’s path to profitability: How soon will heavy investment start yielding positive returns?
- Food-delivery performance: Will core operations stabilize after expansion in quick-commerce?
- Quality of earnings: Higher spend now must convert into long-term margins as growth matures.
🌐 Final Take
Zomato’s Q1 results highlight a trade-off: massive top-line growth and strategic repositioning coming at the cost of short-term profit. With strong investor backing and a robust balance sheet, the company appears poised to lead India’s evolving food and quick-commerce landscape.
