Zomato and Swiggy Shares Slump Amid Profit Drops

Shares of Zomato dropped 12% following a significant decline in net profit for the December quarter. The company's market capitalisation fell by Rs 35,175.53 crore. Swiggy's shares also declined, attributing the fall to competitive pressure from Zomato's business slowdown.

The shares of food tech giant Zomato witnessed a dramatic fall of 12% during morning trading on Tuesday, following the company's announcement of a considerable 57.2% decline in consolidated net profit for the December quarter, amounting to Rs 59 crore.

Zomato's stock plummeted by 11.81% to Rs 212.50 on the Bombay Stock Exchange, while on the National Stock Exchange, the shares dipped by 9.99% to Rs 215.80, hitting its lower circuit mark.

Following Zomato's announcement, its peer Swiggy experienced a more than 10% drop in its shares, marking the biggest single-day decline since its market debut. This comes as Zomato faces pressure from aggressive store expansions and attempts to scale its quick-commerce platform Blinkit.

(With inputs from agencies.)