Zomato’s Q2 FY26 profit plummets despite strong revenue growth

The company’s net profit fell to Rs 65 crore in Q2 FY26, down from Rs 176 crore in the same quarter last year

by e4m Staff
Published: Oct 16, 2025 7:18 PM | 1 min read

Zomato (Eternal), food delivery major, reported a sharp decline in profit for the quarter ending September 30, 2025, even as its total income soared. The company’s net profit fell to Rs 65 crore in Q2 FY26, down from Rs 176 crore in the same quarter last year. For the six-month period (H1 FY26), profit also plunged to Rs 90 crore from Rs 429 crore in H1 FY25, highlighting margin pressures amid rising costs.

The company’s revenue, however, showed strong growth. Total income for Q2 FY26 stood at Rs 13,942 crore, nearly tripling from Rs 5,020 crore in Q2 FY25. For H1 FY26, Zomato reported Rs 21,463 crore in revenue, up from Rs 9,462 crore in H1 FY25.

The rise in revenue was accompanied by a significant increase in expenses. Total expenditure for Q2 FY26 surged to Rs 13,813 crore, compared with Rs 4,783 crore a year ago. In H1 FY26, total expenses climbed to Rs 21,246 crore from Rs 8,986 crore in H1 FY25.

Advertising and sales expenses also nearly doubled, reaching Rs 806 crore in Q2 FY26, up from Rs 421 crore in Q2 FY25. For H1 FY26, these costs rose to Rs 1,477 crore from Rs 817 crore in H1 FY25, indicating aggressive spending to drive growth.

While Zomato continues to expand its topline, the company’s rising operational and marketing costs have squeezed profitability, reflecting the challenges of balancing growth with margin management in a competitive market.