Zomato Share Price in Focus; Receives GST Demand Order

Zomato, a leading food delivery and technology platform, has received a GST demand order amounting to ₹401.7 crore from the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra, the company said in a press release on the stock exchange.

Notice Details

The order, dated November 12, 2024, pertains to the non-payment of GST on delivery charges during the period from October 29, 2019, to March 31, 2022. The demand includes the GST amount along with applicable interest and a penalty of the same amount.

The company, however, maintains confidence in its case, citing strong support from external legal and tax advisors.

Zomato has stated that it intends to appeal the order before the appropriate authority, asserting that they have a solid legal basis for contesting the demand. While the matter is under review, Zomato is committed to addressing the issue through legal channels.

Q2 FY25 Financial Highlights

Food delivery platform Zomato reported a 389% increase in its consolidated net profit, reaching ₹176 crore in the second quarter, compared to ₹36 crore during the same period last year. However, the profit after tax (PAT) fell short of analysts’ expectations, which were set at ₹260 crore.

The company’s revenue from operations surged by 68% year-on-year (YoY), amounting to ₹4,799 crore for the quarter.

Share Price Performance

On December 13, 2024, Zomato’s share price traded 0.42% higher at ₹285.40 at 11:06 AM on the NSE. The stock opened at ₹279, lower than the previous close of ₹284.90. Zomato’s share has lost 4.83% in the last 5 days.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.