Shares of Zomato Ltd rose by 3% in Monday’s trading session after the online food delivery platform, along with unlisted Swiggy, reportedly increased the platform fee to Rs 6 per order from Rs 5 in key markets like Bengaluru and Delhi.
In April, Zomato had raised its platform fee to Rs 5 per order from Rs 4 in Bengaluru, Hyderabad, Mumbai, Lucknow, and the National Capital Region. Zomato and Swiggy initially introduced the platform fee last year at Rs 2 per order. Swiggy is also considering a platform fee of Rs 7 in Bengaluru, which has been reduced to Rs 6, as reported by The Times of India. Business Today could not independently verify this report.
In its Q1 earnings preview note, Elara Securities projected that Zomato would report overall revenue of Rs 3,960 crore for the June quarter, up 63.9% year-over-year, driven by continued traction in food delivery and qCommerce business. Despite a slight slowdown in May 2024 due to heat waves, low availability of delivery partners in tier I markets, and general elections affecting order volume, volumes began to pick up in June, and this momentum is expected to continue.
For the June quarter, ICICI Securities anticipates Zomato’s food delivery gross order value (GOV) to grow by 22.9% year-over-year. It expects the food average order value (AOV) to remain flat sequentially and increase by 2% year-over-year. It also projects Blinkit’s adjusted revenue to grow by 26% quarter-over-quarter or 153% year-over-year. The adjusted revenue for Hyperpure’s business is expected to grow by 15.7% quarter-over-quarter or 78% year-over-year in Q1FY25E.
“Overall, we estimate adjusted revenue growth of 14% quarter-over-quarter (59% year-over-year) and overall adjusted EBITDA margin to improve to 7.9% as a proportion of adjusted revenue (vs. 5.01% in Q3FY24/0.4% in Q1FY24). We estimate an adjusted EBITDA of Rs 350 crore in Q1FY25 (vs. Rs 190 crore in Q4FY24),” ICICI Securities stated.
