Q3 2025 Zomato Ltd Earnings Call Transcript
Key Points
- Zomato Ltd (BOM:543320) has successfully expanded its store network, reaching 1,000 stores ahead of schedule, indicating strong operational capabilities.
- The company is seeing healthy traction in smaller cities, which are showing attractive economic potential and are expected to contribute more to future growth.
- Mature stores are generating healthy contribution margins, providing confidence in the ongoing expansion strategy.
- Zomato Ltd (BOM:543320) has maintained or increased its market share in top markets, demonstrating strong competitive positioning.
- The company is experiencing improved delivery costs due to densification of store networks, which is expected to enhance profitability over time.
- The profitability in quick commerce has worsened due to accelerated store and warehouse expansions, impacting overall margins.
- Marketing costs have increased, particularly in the latter half of the quarter, which could pressure short-term profitability.
- There is a broad-based slowdown in food delivery growth, with uncertainties about when recovery will occur.
- The company anticipates increased losses in the near term due to continued investments in Blinkit, its quick commerce segment.
- Competitive pressures are impacting delivery charges and take rates, which could affect revenue growth and profitability.
Ladies and gentlemen, a very good evening and welcome to Zomato Limited's Q3 F 25 earnings conference call from Zomato's management team. We have with us today, the Pender Goel founder and CEO Akan Goel, Chief Financial Officer Albins Ina, founder and CEO Blanket and Kunal head of investor relations.
Before we begin a few quick announcement for the attendees, anything said on this call which reflects outlook for the future or which could be concluded as a forward-looking statement may involve risk and uncertainty, uncertainties, such statements or comments are not guarantees of future performance and actual results may differ from those statements. Additionally, please note that this call is scheduled for a duration of 45 minutes and we will be starting directly with the Q&A section of the call.
If you wish to ask a question, please use the ras and feature available on your Zoom dashboard. We will announce your name on the call and unmute your line post which you can proceed with your question. We will wait for a minute while the question queue assembles.
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