By Ananta Agarwal and Ashna Teresa Britto (Reuters) -Indian food delivery major Zomato's third-quarter profit more than halved on Monday, as rising competition in the quick commerce space and increased spending on opening more fulfilment centres for its Blinkit platform weighed on margins.

Foodtech major Zomato’s consolidated net profit slumped 57.2% to INR 59 Cr in Q3 FY25 from INR 138 Cr in the year-ago quarter.

Zomato attributed the dip in profit to higher investments aimed at quickening the pace of store openings and acquiring new customers, particularly in its quick commerce business. Adjusted EBITDA, however,

India's Zomato reported a smaller-than-expected third-quarter profit on Monday as its margins continue to face pressure from high spending on opening more centres to fulfil orders at its quick commerce platform,

The food delivery Adjusted EBITDA margin improved to 4.3 per cent of Gross Order Value (GOV) from 3.0 per cent a year earlier, which was the main driver of Zomato's reported 128 per cent year-over-year (Y-o-Y) growth in consolidated Adjusted Ebitda (earnings before interest, taxes, depreciation, and amortisation) to Rs 285 crore in Q3 FY25.

Zomato's share price fell by nearly 10% in early trade on Tuesday, following a significant 57.25% decline in net profit for the third quarter of FY25

India's Zomato reported a 57% fall in third-quarter profit on Monday as its margins continued to face pressure from increased spending on opening more centres to fulfil orders at its Blinkit quick commerce platform.

However, revenue from operations witnessed a significant growth of 64%. The company's revenue jumped to ₹5,405 crore from ₹3,288 crore in Q3 FY24. Sequentially, this marks a 13% growth over the ₹4,799 crore reported in Q2 FY25.

A significant portions of Zomato's expenses came from purchases of stock-in-trade which grew to ₹1,510 crore from ₹783 crore earlier.