Zomato Increases Ad Spend To Rs 396 Crore In Q1FY25

Zomato released its earnings for the April-June quarter of the 2024-25 financial year. Under CEO Deepinder Goyal’s leadership, the company reported a consolidated net profit of Rs 253 crore for Q1 FY25, an increase from Rs 2 crore in the same quarter last year.

Zomato’s revenue from operations for the first quarter of FY25 reached Rs 4,206 crore, compared to Rs 2,416 crore in the corresponding period of the previous year. The company’s advertising and sales promotion expenses totalled Rs 396 crore, reflecting a 26.11 per cent year-on-year increase from Rs 314 crore spent in the previous year. Ad spending also saw a quarter-on-quarter rise of 1.79 per cent, up from Rs 389 crore in the quarter ending March 31, 2024.

EBITDA for the quarter stood at Rs 177 crore. The company's B2C segments including food delivery, quick commerce and going-out—experienced a Gross Order Value (GOV) growth of 53 per cent year-on-year (14 per cent quarter-on-quarter), reaching Rs 15,455 crore. Specifically, food delivery GOV increased by 27 per cent YoY (10 per cent QoQ), quick commerce surged by 130 per cent YoY (22 per cent QoQ) and going-out GOV rose by 106 per cent YoY (19 per cent QoQ), according to the company’s official statement.