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Synopsis: As the Q4 FY25 earnings season begins, India’s major internet firms—including Paytm, Zomato, Swiggy, Nykaa, PB Fintech, Info Edge, and Just Dial—are drawing investor attention. Analysts are expecting mixed results as these companies work to strike a balance between growth aspirations and profitability amid changing market dynamics and regulatory shifts.
Zomato, which has rebranded as Eternal Ltd, is expected to show strong growth in its quick commerce segment, Blinkit. Blinkit reportedly turned adjusted EBITDA positive in March, marking a significant milestone. Zomato has also outlined plans to nearly double Blinkit’s store count from 526 at the end of FY24 to 1,000 by FY25. Despite this, the company may face pressure on its bottom line. Its food delivery business is anticipated to report a sharp decline in profits, with net profit falling 98.8% year-on-year to Rs0.7 crore, largely due to Blinkit's earlier losses. However, its Gross Order Value (GOV) is expected to grow by 50.8% YoY to Rs18,797.5 crore, showing robust expansion in operations.
Swiggy, another major player in the food delivery and quick commerce space, also saw significant growth, reporting a 38% YoY increase in GOV to Rs12,165 crore. Its grocery delivery arm, Instamart, grew by 88.1% year-on-year and added 96 new dark stores during the third quarter alone. Despite these gains, Swiggy's financials show that the company is still burning cash, with an adjusted EBITDA loss of Rs490 crore in Q3—a slight improvement of 2% compared to last year.
In contrast, Paytm faced a challenging quarter due to regulatory action from the Reserve Bank of India (RBI) against its payments bank unit. The company posted a net loss of Rs549.6 crore for Q4 FY24, up from Rs219.8 crore in the previous quarter, while revenue from operations declined 2.8% sequentially to Rs2,267.1 crore. Nevertheless, on a full-year basis, Paytm's total revenue rose 25% to Rs9,978 crore, and contribution profit increased by 42% to Rs5,538 crore, highlighting overall business growth outside the impacted payments bank.
PB Fintech, the parent of Policybazaar and Paisabazaar, continued to expand its reach in the insurance and financial services sector. The company reported a 70.3% increase in insurance premiums year-on-year, reaching Rs3,030 crore. With a dominant market share in online insurance of over 90% and an expanding offline network, PB Fintech is poised to benefit from rising agent productivity and traction in its new channels. Analysts expect its margins and revenues to improve further in the coming quarters.
Nykaa, known for its focus on beauty and personal care (BPC), turned in a profitable Q4 with a net profit of Rs15.9 crore, up 129.3% from the same quarter last year. The BPC segment performed strongly, while the fashion vertical showed marginal growth. The company’s contribution profit is expected to grow 22% YoY, and EBITDA margin is projected to improve by 30 basis points to 5.9%, indicating progress on profitability.
Info Edge, which operates platforms like Naukri.com, 99acres, and Jeevansathi, continued to benefit from its recruitment segment. Billing growth remained strong, and its EBITDA margin is expected to expand by 309 basis points year-on-year to 43.7%. Investors will be closely watching the company’s commentary on demand trends in both IT and non-IT hiring, which could indicate the direction of broader economic momentum.
Lastly, Just Dial is expected to report an 8.3% increase in revenue year-on-year, thanks to a 4% rise in paid campaigns and a 3% growth in average realization per campaign. Profit after tax (PAT) is estimated to grow 40% YoY to Rs140 crore, driven by better operational efficiency and tighter control over marketing and promotional spending.
Disclaimer: This article is intended solely for informational purposes and should not be taken as financial advice. Readers are encouraged to conduct their own research or consult a financial advisor before making any investment decisions.
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