Zomato’s share hits 6-month low amid Blinkit’s expansion plans [Video]

Zomato’s share price dropped to its lowest point on Tuesday in nearly six months, following weak Q3 FY25 earnings.

The online food delivery giant’s stock marked the lowest price since July 23, 2024 as it dropped 13.33 per cent to Rs 207.80 per share.

As of 12:52 p.m., Zomato’s shares were trading 8.88 per cent lower at Rs 218.40. This decline comes even as the broader Nifty 50 index saw a small rise of 0.31 per cent.

The drop in Zomato’s stock price is linked to the company’s increased investment in Blinkit, its quick-commerce business.

Blinkit, which delivers groceries and other essentials, is expanding rapidly, and Zomato has been focusing its resources on this growth. As a result, the company’s profitability is expected to remain low in both the current and next financial year.

In its third-quarter results for December 2024, Zomato’s profits were impacted by Blinkit’s expansion plans. The company is …