Zomato’s Q4 performance showcased a remarkable turnaround, with a consolidated net profit of ₹175 crore, a significant leap from the loss of ₹188 crore in the same period last year. Despite this positive outcome, Zomato shares saw a 6% dip in early trading, closing at ₹182.10 apiece on the BSE.
Key highlights include a 73% surge in revenue to ₹3,562 crore, alongside a notable improvement in operating performance, with EBITDA standing at ₹86 crore compared to a loss of ₹226 crore previously. Additionally, Blinkit, the company’s quick commerce arm, achieved operational EBITDA break-even, signaling its growing strength in the market.
Analysts remain optimistic about Zomato’s trajectory, albeit with some reservations. Emkay Global Financial Services noted a margin miss due to higher-than-expected ESOP costs but maintained a ‘Buy’ rating with a target price of ₹230 per share. Nuvama Institutional Equities raised its target price to ₹245 per share, citing Blinkit’s rapid growth and market leadership.
Elara Capital emphasized Zomato’s strong position in the food delivery sector and projected continued growth, albeit with a focus on Blinkit’s expansion, resulting in a target price increase to ₹280 per share.
Despite the initial market response, analysts see Zomato as a solid investment opportunity, backed by its diverse business portfolio and strategic growth initiatives.
