ICICI Securities has released its earnings estimates for Zomato's third quarter performance, projecting a mixed financial outlook with declining year-on-year profitability offset by strong revenue growth and quarter-on-quarter recovery.

Financial Performance Projections

The brokerage house expects Zomato to report contrasting trends across key financial metrics. While profitability faces year-on-year pressure, the company shows signs of strong operational momentum on a quarterly basis.

Revenue Growth Momentum

Net sales are projected to demonstrate exceptional growth, with ICICI Securities forecasting revenues of ₹17,700.60 crore. This represents a substantial 208.1% increase year-on-year, indicating significant business expansion. The quarter-on-quarter growth of 26.7% suggests sustained momentum in the company's core operations.

Profitability and Operational Metrics

Despite strong revenue performance, net profit is expected to face headwinds with a projected decline of 43.6% year-on-year to ₹99.30 crore. However, the quarter-on-quarter recovery of 297.3% indicates improving operational efficiency and cost management initiatives.

EBITDA projections show modest year-on-year improvement of 1.2% to ₹288.50 crore, while the 28.8% quarter-on-quarter growth demonstrates strengthening operational performance and margin expansion capabilities.

The Labour Ministry has taken decisive action against quick-commerce platforms, directing major companies to prioritize worker safety over rapid delivery promises. Union Labour Minister Mansukh Mandaviya met with representatives from leading platforms on Tuesday, instructing them to remove the controversial 10-minute delivery time limits that have become a hallmark of the quick-commerce industry.

Ministry Directive on Delivery Time Limits

The government's intervention specifically targets prominent quick-commerce operators including Zomato, Swiggy, Blinkit, and Zepto. During the meeting, Minister Mandaviya emphasized that these platforms must prioritize the safety of their delivery partners over speed-based service commitments. The directive represents a significant shift in regulatory approach toward the rapidly growing quick-commerce sector.

Worker Strikes Highlight Industry Concerns

The ministry's action follows a series of coordinated strikes by gig workers across the country. In December 2024, the Telangana Gig and Platform Workers' Union (TGPWU) and Indian Federation of App-Based Transport Workers (IFAT) organized strikes demanding better compensation and improved working conditions. The protests culminated on December 31, when the Gig and Platform Service Workers Union staged a nationwide strike to collectively raise demands concerning worker rights, welfare, and dignity across India's gig economy platforms.

New Social Security Framework

Concurrent with the delivery time directive, the Labour Ministry published new draft rules under the Social Security Code 2020 on December 31. These regulations establish a 90-day annual work threshold as the mandatory eligibility criteria for gig and platform workers to access social security benefits.

Engagement Calculation Guidelines

The ministry has provided detailed specifications for determining worker engagement:

Worker Classification and Coverage

The new framework clarifies that eligible gig and platform workers include all individuals engaged by aggregators through various business structures. This encompasses workers hired directly by the primary company, as well as those employed through associate companies, holding companies, subsidiary companies, limited liability partnerships, or third-party contractors. The comprehensive definition ensures broader coverage under the social security provisions.

Industry Impact and Implementation

The regulatory changes signal the government's commitment to balancing rapid service delivery with worker welfare in India's expanding gig economy. The elimination of 10-minute delivery promises may require platforms to restructure their operational models and marketing strategies, while the new social security framework provides a pathway for millions of gig workers to access previously unavailable benefits and protections.