In a strategic leadership reshuffle, Rakesh Ranjan, the CEO of Zomato’s food delivery business, is stepping down from his role. Founder and Group CEO Deepinder Goyal will now personally oversee the food delivery operations for the coming months, as per sources cited by Moneycontrol.
Despite vacating the CEO post, Ranjan will remain with Zomato (internally known as ‘Eternal’), continuing to play a key role within the broader ecosystem of the company. This leadership change is part of Zomato’s routine executive rejig, which the company reportedly undertakes every few years.
Ranjan’s Tenure and Impact
Ranjan, who took over the food delivery division in June 2023, has been with the company for nearly eight years. Under his leadership, Zomato continued to maintain its position as a market leader in India’s competitive food delivery sector.
Financial Snapshot – Q3FY25
While operationally robust, the company faced some financial turbulence in the most recent quarter:
- Consolidated net profit dropped 57.3% YoY to ₹59 crore in Q3FY25 (from ₹138 crore in Q3FY24), largely due to investments in Blinkit’s dark store expansion.
- Revenue surged 64.9% YoY to ₹5,405 crore (compared to ₹3,288 crore in Q3FY24).
- In Q2FY25, net profit had already dropped 66.5% YoY to ₹59 crore, signaling pressure on margins despite top-line growth.
Zomato Stock Performance
Zomato’s stock has shown mixed signals:
- +8% gain in the past 5 days
- +7.5% return over the last month
- +16.5% return over 6 months
- But -6% over the past year
In comparison, the Nifty 50 index has:
- +4% in 5 days
- +2.6% in one month
- +0.5% in six months
- +8.4% over one year
The contrast highlights that Zomato’s recent gains outpaced the market in the short term, but it has underperformed over the long run, likely due to concerns about profitability and Blinkit’s burn rate.
