Zomato faced a 6% decline in its share price during early trading on Tuesday following the announcement of its Q4 results. The food delivery platform reported a consolidated net profit of ₹175 crore for the fourth quarter of FY24, a significant improvement from the loss of ₹188 crore reported in the same period last year. Despite the growth in net profit, Zomato shares fell as much as 5.98% to ₹182.10 apiece on the BSE.
Revenue from operations for Q4FY24 surged by 73% to ₹3,562 crore compared to ₹2,056 crore in the corresponding period last year. Additionally, the gross order value (GOV) for the March quarter witnessed a robust growth of 51% year-on-year, reaching ₹13,536 crore across B2C businesses.
While the operating level saw improvement with an EBITDA of ₹86 crore, compared to a loss of ₹226 crore in the same period last year, Zomato’s quick commerce arm Blinkit achieved operational EBITDA break-even in March 2024.
Analysts maintained their bullish outlook on Zomato shares, with some even raising their target prices. Emkay Global Financial Services noted steady operational results, with revenue exceeding estimates. Despite a margin miss due to higher than expected ESOP costs, the brokerage retained a ‘Buy’ rating with a target price of ₹230 per share.
Nuvama Institutional Equities raised its target price to ₹245 per share, citing faster-than-expected growth and clear leadership in quick commerce. Elara Capital also maintained a ‘Buy’ rating, emphasizing Zomato’s strong moat in the food business and superior execution for Blinkit.
However, despite analyst optimism, Zomato shares were trading 4.96% lower at ₹184.10 apiece on the BSE as of 9:20 am.
