Zomato Posts Surprise Profit In Q2, Expects More In Festive Season

Shares ended the session 8.3% higher, taking year-to-date gains to over 96%

Zomato posted its second straight quarterly profit today, an unexpected result that was driven by higher food delivery orders that the company expects will be even higher in the ongoing festive season.

Net profit came in at 360 million rupees in the second quarter ended September 30, beating analysts' expectations of a loss of 201.7 million rupees, according to LSEG. It had reported a loss last year.

Gross order value (GOV) - the total value of all food delivery orders placed - for the foods business grew 20%, led by higher orders and as customers with the paid "Gold" subscription used the service more frequently.