Zomato Ltd. has reported a 57% decline in profit for the October-December quarter as its delivery subsidiary, Blinkit, has widened its losses due to heightened competition and increased investments.

The consolidated net income for the quarter was 590 million rupees (US$6.8 million), falling short of market expectations of 2.3 billion rupees (US$27.6 million).

Blinkit, which specializes in ultra-fast grocery delivery, recorded an adjusted EBITDA loss of 1.03 billion rupees (US$12.3 million).

This is compared to a loss of 890 million rupees (US$10.6 million) during the same period last year.

The company has accelerated its goal of opening 2,000 stores by December 2025, leading to higher operational costs.

Zomato expects Blinkit to incur losses for another one to two quarters due to aggressive expansion, leading to under-used outlets.

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