Daijiworld Media Network – Mumbai
Mumbai, Jul 21: Shares of Zomato, now rebranded as Eternal Ltd., opened on a positive note Monday, trading 1.26% higher ahead of its much-anticipated first-quarter earnings announcement for FY26.
Brokerages including Goldman Sachs and HDFC Securities remain bullish on the company's growth, citing continued innovation and expansion into verticals like Bistro. The company’s core food delivery arm and its fast-growing quick commerce division, Blinkit, are expected to significantly boost revenue this quarter.
Analysts expect Zomato to post a 13.5% year-on-year increase in revenue to Rs 6,624.2 cr. Ebitda is projected at Rs 178.4 cr, with margins likely around 2.6%. Net profit may touch Rs 105 cr, indicating a possible turnaround from the previous quarter’s drop.
Despite optimism, concerns over sustained profitability remain. Blinkit's margins are anticipated to improve gradually, though reinvestments and stiff competition in the quick commerce space could delay consistent gains.
At 09:38 a.m., Zomato shares were trading at Rs 257.95 apiece, up 0.29%, after touching an intraday high of Rs 260.45. In comparison, the NSE Nifty 50 Index declined by 0.22%.
The stock has gained 21.03% over the last 12 months. Of the 31 analysts covering the company, 25 have a 'buy' rating, two suggest 'hold', and four recommend 'sell'. The average 12-month price target implies a 9.4% upside, according to Bloomberg data.
Investors are closely watching today’s earnings release for cues on margin stability and strategic direction in Zomato’s high-growth businesses.