Food tech unicorn Zomato saw its shares tumble by 12 per cent in early trade on Tuesday following a 57.2 per cent decline in consolidated net profit for the December quarter to ₹59 crore.
On the BSE, Zomato’s stock dropped 11.81 per cent to ₹212.50 apiece, while on the NSE, it fell 9.99 per cent to ₹215.80 per share. This marked a total erosion of ₹35,175.53 crore in Zomato’s market capitalisation over two days to ₹2,04,876.94 crore.
In response to Zomato’s slowdown, shares of its competitor Swiggy also fell over 10 per cent on the stock exchanges. Swiggy’s stock dipped 10.47 per cent to ₹428.85 on the BSE and 9.91 per cent to ₹431.70 on the NSE, marking the biggest single-day drop since its listing last year.
Meanwhile, the BSE Sensex dropped 0.92 per cent to 76,362.84 points, while the NSE Nifty fell 0.61 per cent to 23,202.90 in early trade.
Zomato reported a 57.2 per cent decrease in consolidated net profit to ₹59 crore for the December quarter, with rising expenses impacting margins. The company’s revenue from operations was ₹5,405 crore, up from ₹3,288 crore a year ago, but total expenses also increased to ₹5,533 crore.
Zomato’s revenue-reporting segments include India food ordering and delivery, hyperpure supplies, quick commerce, Going out, and other areas. Swiggy is yet to announce its December quarter results.
The news article was first published on January 21, 2025.
