Zomato's Profit Downturn: Impact of Expansion on Financial Performance

Zomato's shares fell nearly 4% following a 57.2% drop in net profit for the December quarter. The decline was attributed to increased expenses associated with store expansion for Blinkit. Despite slower demand growth, consolidated revenue rose year-over-year, but rising costs impacted overall profitability.

Zomato witnessed a significant decline in its stock value on Monday, plummeting nearly 4% after reporting a 57.2% drop in consolidated net profit for the December quarter.

The company, a leading name in the food tech industry, attributed this downturn to aggressive store expansion aimed at supporting its quick-commerce platform, Blinkit.

Despite experiencing growth in food delivery, Zomato faced pressure on its margins, reflected by a substantial rise in total expenses over the past year.

(With inputs from agencies.)