Zomato Share Price Live Updates: Zomato stock zooms 16% as Q1 net profit surges 126 times to ₹253 crore

Shares of Zomato surged more than 12 per cent on Friday after the food delivery aggregator reported a multi-fold jump in consolidated net profit to ₹253 crore for the June quarter.

In the intra-day trade, shares of Zomato advanced up to 19 per cent to hit a 52-week high of ₹278.70 and ₹278.45 apiece on the NSE and BSE.

The stock of Zomato zoomed 12.14 per cent to trade at Rs 262.50 apiece on the NSE.

On the BSE, it jumped 12.13 per cent to Rs 262.50 per piece.

Zomato stock rose 12.35% on the NSE to trade at ₹263 as at 12.12 pm.

On the BSE, the stock was up 12.20% to trade at ₹262.65.

Major stocks that hit a 52-week high on the NSE: 

Zomato (11.86%), Nazara (7.40%), Bikaji (6.18%), Naukri (5.34%), TTK Prestige (4.02%), RITCO (2.14%), Tata Power (0.64%) 

Each business continues to deliver fast-paced growth; reiterate ‘BUY’

Zomato continues to deliver on its promise of strong growth along with improvement in profitability. Management is not dialling down on growth ambition as they announced 2k dark store addition target by the end of CY26. We now value food delivery at ~USD14bn and Blinkit at ~USD13bn

Zomato once again churned out impressive results, with all segments registering healthy growth. Food delivery GOV growth remained robust at 27% YoY, and Blinkit continued tracking its sturdy growth path with GOV up 130% YoY to Rs49.2bn. For Food Delivery, the management sees GOV growth sustaining at >20% in the near term, slightly lower than that in the last couple of quarters. Blinkit’s stellar growth is complemented by continued improvements in profitability, where it sustained adjusted EBITDA breakeven despite investing in new stores. The mgmt now targets a store-count of 2,000 for Blinkit by 2026, as it continues its expansion spree for seizing market opportunities. Zomato has also announced its intention of building a one-stop destination app for ‘going-out’ called District and sees this as its third-largest B2C business. We revise our FY25-27 EPS estimates by -2% to 4%, factoring in the Q1 performance and the aggressive store expansion plans for Blinkit. We maintain BUY on Zomato, raising Jun-26E TP to Rs270/sh on SOTP basis. 

Emkay Global

Strong consumer traction and store expansion drives GOV growth, break-even guidance broadly achieved: Blinkit’s GOV grew a robust 130% YoY (+22% QoQ) to INR 49.2bn, rouhgly in-line with JMFe of INR 49bn. Growth was aided by 114% expansion in orders (+21% QoQ), which in turn was driven by MTU expansion to 7.6mn from 6.4mn/3.9mn in 4QFY24/1QFY24. AOV improved 1% sequentially, from INR 617 in 4Q to INR 625 in 1Q (+7% YoY). During the quarter, take-rate was flattish sequentially at 19.1% (+120bps YoY). While contribution margin expanded c.10bps QoQ to 4.0% (+470bps YoY), Adj. EBITDA loss as % of GOV narrowed to 0.1% vs. a loss of 0.9% last quarter, on the back of strong operating leverage.

Shares of Zomato surged as much as 19% to a record high on Friday, a day after the food delivery company’s first-quarter profit blew past expectations, powered by strong growth in its Blinkit grocery delivery business.

The stock’s surge defied the weakness in the broader market and its 15% increase as of 10:19 a.m. IST put it on course for its best one-day percentage jump since August 2022.

At least 9 of the 23 analysts covering Zomato raised their target price on the stock, per LSEG data, lifting the median target to 260 rupees, below the stock’s record high of 278.70 rupees on the day. Analysts’ average target is about 243 rupees.

(Reuters)

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Zomato stock traded at ₹269.62 on the NSE, higher by 15.18% as at 10.36 am.

Top gainers on the BSE as at 10.30 am:

Zomato (14.29%), GHCL (6.65%), Neuland Laboratories (5.63%), TTML (5.39%), DCAL (4.99%)

Top losers:

Cummins India (-7.77%), GR Infraprojects (-5.53%), Repco Home (-4.82%), Tata Motors DVR (-3.88%), Eicher Motor (-3.81%)

Blinkit, however, notoriously defies any attempts to value the stock fairly,due to its feisty growth and the disruptive and evolving nature of quickcommerce. Its gross order value (GOV) surged 100%+ YoY, and we believeBlinkit GOV is the most important factor driving variation for a DCF-basedprice target. With GOV growth assumed at 75% CAGR over FY24-FY28E, thetarget price is INR300 (Blinkit contribution INR171). If GOV growthmoderates to 50%, the TP drops to INR180 (Blinkit contribution INR100, inthis case). However, there may be upside risk to these GOV estimates,potentially unlocking more value. We expect adjusted EBITDA marginexpansion could be slower, as the management continues to expand darkstores (2,000 dark stores by FY26 vs. ~600 dark stores currently).

Zomato’s food delivery business is stable, and Blinkit offers a generational opportunity to participate in the disruption of industries such as retail, grocery and e-commerce. Our DCF-based valuation of INR300 suggests a 25% upside from the current price. We reiterate our BUY rating on the stock. We value the business using a DCF methodology, assuming 12.5% cost of capital. We maintain our BUY rating with a TP of INR300, implying 25% potential upside.

Maintain ‘BUY’ with a revised SotP-based TP of INR285 (earlier INR245) based on a valuation rollover to Sep-26E.

Zomato shares traded at ₹270.35 on the NSE, higher by 15.49% as at 10.16 am. Hits a 52-week high at ₹278.70.

Zomato is launching “District”, a new platform to consolidate going-out services such as dining, movies, sports ticketing, live performances, shopping, and staycations, CEO Deepinder Goyal said on Thursday.

In a letter to shareholders post the company’s first quarter financial results, Goyal shared that he sees “District” emerging as the third large B2C business out of Zomato.

“We believe that there is an opportunity to further expand our going-out offering, building on top of our dining-out business,” Goyal informed.

He observed that today, Zomato and Blinkit are our two large consumer businesses and both of them serve customers’ needs at home.

“However, we also have one of India’s largest ‘going-out’ businesses. Our dining-out business which helps our customers discover restaurants when they want to go out and dine at restaurants,” the Zomato CEO said.

This dining-out business is now operating at a run-rate of $500 million plus annualised GOV (gross order value) and is already profitable, Goyal stated.

Elaborating further, he said, additional use cases for customers in the going out space include movies, sports ticketing, live performances, shopping, staycations etc., some of which we have already launched, or are building as we speak.

“Building a one-stop destination app for going-out could be a game changer for each of these use cases, and we intend to do exactly that with our new District (by Zomato) app. If we execute this well, we see going-out becoming the 3rd large B2C business emerging out of Zomato,” Goyal said.

Inputs from PTI

Zomato said it plans to expand Blinkit’s dark store network to 2,000 stores by the end of 2026 while remaining profitable. “Most of these stores would be in top 10 cities in India. Beyond the large cities, the size of the market is still undiscovered,” said Albinder Dhindsa, Founder & CEO, Blinkit. Earlier, the company had said it aims to get to 1,000 stores by March 2025.

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• CLSA on Zomato: Maintain Buy on Company, raise target price at Rs 350/Sh (Positive)

• UBS on Zomato: Maintain Buy on Company, raise target price at Rs 260/Sh (Positive)

• Citi on Zomato: Maintain Buy on Company, raise target price at Rs 280/Sh (Positive)

• GS on Zomato: Maintain Buy on Company, raise target price at Rs 280/Sh (Positive)

• Axis on Zomato: Maintain Buy on Company, raise target price at Rs 287/Sh (Positive)

• Bernstein on Zomato: Maintain Outperform on Company, raise target price at Rs 275/Sh (Positive)

• MS on Zomato: Maintain Overweight on Company, raise target price at Rs 278/Sh (Positive)

• Macquarie on Zomato: Maintain Underperform on Company, target price at Rs 100/Sh (Neutral)

Axis Securities has initiated coverage on Zomato with a BUY recommendation and a Target Price (TP) of Rs 280/share, implying an upside of 23% from the current levels. 

Zomato’s net profit surged to ₹253 crore in the quarter ended March 31, up nearly 126 times compared to the corresponding period last year. Revenue from operations stood at ₹4,206 crore, up 74 per cent in the quarter under review.

The company said Gross Order Value (GOV) of its B2C businesses stood at ₹15,455 crore, up 53 per cent year-on-year. Food delivery GOV grew 27 per cent year-on-year, quick commerce GOV was up 130 per cent while going-out GOV grew 106 per cent year-on-year. The B2B business Hyperpure’s revenue grew 96 per cent y-o-y.

On food delivery business, the company’s management said, “Between FY20 (pre-Covid) to FY24, food delivery GOV has grown at a CAGR of 30 per cent. With expected structural demand growth and robust supply side dynamics in India, we anticipate the industry to compound at the same rate over the next five years.”

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Zomato shares traded at ₹255.01, 8.94% higher on the NSE as at 9.35 am. The stock has hit a 52-week high today at ₹261 following Q1 results.