Rakesh Ranjan, the CEO overseeing Zomato’s food delivery operations, is set to resign from his role. In a strategic move, Deepinder Goyal, the founder and group CEO, will temporarily take charge of the food delivery segment as the company undergoes a leadership transition. Ranjan is expected to remain part of Zomato, also known as Eternal, as reported by industry sources.
Leadership Changes at Zomato
Rakesh Ranjan has been with Zomato for nearly eight years, stepping into the CEO position of the food delivery unit in June 2023. During his tenure, Zomato solidified its status as a market leader, navigating the competitive landscape of food delivery services.
Financial Performance Overview
In its recent financial disclosures, Zomato revealed a 57.3% drop in consolidated net profit for Q3 FY25, amounting to ₹59 crores. This downturn primarily stems from the expansion of Blinkit dark stores, a strategic initiative that has impacted profitability. To put this in perspective, the company reported a net profit of ₹138 crores during the same quarter the previous year. The decline continued from Q2 FY25, where profits fell 66.5% compared to the prior year.
- Q3 FY25 Highlights:
- Net Profit: ₹59 crores
- Q3 FY24 Net Profit: ₹138 crores
- Q2 FY25 Net Profit Drop: 66.5%
- Revenue Growth: 64.9% to ₹5,405 crores
Despite the profit dip, Zomato’s revenue climbed significantly, reaching ₹5,405 crores in Q3 FY25, up from ₹3,288 crores in Q3 FY24.
Zomato Stock Performance Analysis
In the stock market, Zomato’s shares have shown a positive trend, rising over 8% in the past five days. Over the last month, the stock has delivered a 7.5% return and has increased by 16.5% over the last six months. However, on a year-on-year basis, shares have declined by 6%.
- Performance Metrics:
- Last 5 Days: +8%
- Last Month: +7.5%
- Last 6 Months: +16.5%
- Last Year: -6%
In comparison, the Nifty 50 index has experienced a modest rise, gaining 4% in the last five days and 2.6% over the past month. The benchmark index has added 8.4% to investors’ wealth in the past year.
For a deeper dive into the competitive landscape, check out our analysis of Zomato vs. Swiggy and discover which stock might be the better pick for investors in 2025.
As Zomato navigates these leadership changes and financial challenges, all eyes will be on how the company adapts and evolves in the fast-paced food delivery market.
