Shares of Zomato Ltd saw a 3% uptick on Monday after the online food delivery giant, alongside unlisted competitor Swiggy, reportedly increased their platform fees from Rs 5 to Rs 6 per order in major markets like Bengaluru and Delhi.
Back in April, Zomato had already bumped its platform fee from Rs 4 to Rs 5 per order in cities including Bengaluru, Hyderabad, Mumbai, Lucknow, and the National Capital Region. The platform fee, introduced by Zomato and Swiggy last year at Rs 2 per order, has now seen a consistent increase. Reports from The Times of India also indicate that Swiggy is testing a fee of Rs 7 in Bengaluru, which is currently being discounted to Rs 6. Business Today has not independently verified this information.
In response to this development, Zomato’s stock climbed 3.17%, reaching a high of Rs 229.50 on the BSE.
Elara Securities, in its Q1 earnings preview note, projected that Zomato will likely report an overall revenue of Rs 3,960 crore for the June quarter, marking a 63.9% year-on-year increase. Despite a slight dip in May 2024 due to heat waves, a shortage of delivery partners in tier I markets, and the general elections impacting order volume, the company saw a rebound in June with expectations for sustained momentum.
For the June quarter, ICICI Securities forecasts a 22.9% year-on-year growth in Zomato’s food delivery gross order value (GOV). The average order value (AOV) is expected to remain stable sequentially and show a 2% year-on-year increase. Additionally, Blinkit’s adjusted revenue is anticipated to grow by 26% quarter-on-quarter, or 153% year-on-year. Hyperpure’s business is projected to see a 15.7% quarter-on-quarter increase or a 78% year-on-year rise in adjusted revenue for Q1FY25E.
“Overall, we estimate an adjusted revenue growth of 14% quarter-on-quarter (59% year-on-year) and an improvement in the overall adjusted EBITDA margin to 7.9% as a proportion of adjusted revenue (up from 5.01% in Q3FY24 and 0.4% in Q1FY24). We project an adjusted EBITDA of Rs 350 crore in Q1FY25, compared to Rs 190 crore in Q4FY24,” the note added.
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