The Big Picture: Zomato serves a turnaround recipe

Last November the narrative was all about how Zomato was in a soup. About how there were too many top-level exits and layoffs, how the losses were bigger and how Blinkit was bleeding. A year down the line, the pessimism is almost all gone; the chatter now is about how the food delivery app has staged a promising turnaround and is on the road to sustained profitability.

The September quarter numbers are undoubtedly good even if costs are a bit of a dampener. Critically, as analysts have pointed out, the operating losses have narrowed considerably to 47 crore from 311.4 crore in Q2FY23. Adjusted for Esop charges, the Ebitda has turned positive at 85 crore from a loss of 175 crore a year ago.