Zomato Ltd, an online food and grocery delivery platform, recorded a phenomenal growth of 388.89 percent year on year in its second quarter consolidated net profit (Q2 FY25). Profit for the current quarter was Rs 176 crore, up from Rs 36 crore the previous year.

However, profit fell by 30.44 percent in Q2 FY25, from Rs 253 crore in the previous quarter. Revenue from operations increased 68.50 percent to Rs 4,799 crore, up from Rs 2,848 crore in the same period last year.

In terms of profitability, Zomato said that its consolidated adjusted EBITDA climbed by Rs 289 crore year on year to Rs 330 crore in Q2 FY25, owing to improved food delivery margins and near break-even fast commerce margins despite rapid store development.

Food delivery gross order value (GOV) increased by 21% year on year (5% QoQ). "The business remains steady and continues to grow well," said Akshant Goyal, CFO of Zomato.

Quick commerce GOV rose by 122% YoY (25 percent QoQ). In Q2 FY25, the company opened 152 new outlets and 7 warehouses. It plans to extend its shop count to 2000 by the end of 2026.

Zomato also approved funding up to Rs 8,500 crore by issuing shares in a qualified institutional placement (QIP).

"While the firm is now earning cash (compared to a loss-making business at the time of the IPO), we believe that we need to increase our cash balance given the competitive landscape and the significantly larger scale of our business now. We believe that capital alone does not give anyone the right to win (and that service quality is the most important determinant of success), but we want to ensure that we are on a level playing field with our competitors, who continue to raise capital," said Deepinder Goyal, Founder and CEO of Zomato.

Zomato shares fell 3.58 percent to Rs 256.20. At this pricing, the stock has offered multibagger returns to investors, up 105.78 percent year to date (YTD).