Zomato and Swiggy Shares Plummet Amid Profit Decline

Shares of Zomato fell 11% after reporting a 57.2% drop in net profit for the December quarter. This affected Swiggy's shares, which also dropped. Zomato's revenue rose to Rs 5,405 crore, but net profit suffered due to pressures from store expansions for quick-commerce platform Blinkit.

Shares of food tech giant Zomato experienced a significant decline of 11 percent on Tuesday after the company announced a sharp 57.2 percent decrease in its consolidated net profit for the December quarter.

At the Bombay Stock Exchange (BSE), Zomato's stock plummeted by 10.92 percent, closing the day at Rs 214.65 per share. A similar decrease was seen on the National Stock Exchange (NSE) where shares dropped by 10.16 percent, settling at Rs 215.40 apiece. Notably, a high volume of trading was observed, with 30.82 crore equity shares changing hands on the NSE and 1.76 crore on the BSE.

This decline in Zomato's stock also impacted its competitor Swiggy, whose shares fell by over 8 percent on both the BSE and NSE, marking the largest single-day drop since its listing last year. This comes as Swiggy awaits the announcement of its December quarter results. Zomato, despite reporting a rise in its consolidated revenue from operations to Rs 5,405 crore, saw its profitability affected by aggressive store expansions for its quick-commerce service, Blinkit.

(With inputs from agencies.)