Shares of Eternal Ltd., parent of food delivery platform Zomato and Blinkit, rose nearly 3% in early trade on Friday, May 2, after the company reported March quarter results that were in line with analyst expectations. The stock touched an intraday high of ₹238.90, up almost 8% from the day’s low of ₹220.05.
For the March quarter (Q4FY25), Zomato’s food delivery Gross Order Value (GOV) rose 16% year-on-year to ₹9,778 crore, while Net Order Value (NOV) grew 14% YoY. However, this marked the fifth consecutive quarter of slowing GOV growth, impacted by weak demand, delivery partner shortages, and the delisting of ~19,000 restaurants.
Adjusted EBITDA for the food delivery segment improved to ₹428 crore, or 4.4% of GOV, but Blinkit widened its adjusted EBITDA loss to ₹178 crore, as the company aggressively expanded its store base to 1,301 stores—adding 294 in Q4 alone.
What brokerages are saying:
Nomura:
- Maintains Buy rating
- Cuts target to ₹280 from ₹290
- Notes Zomato is well-positioned to face competition, but highlights the risk of prolonged Blinkit losses beyond FY26.
Ambit Capital:
- Maintains Sell rating
- Lowers target price to ₹182
- Flags ongoing slowdown in food delivery and intensifying competition in quick commerce
- Highlights expanded capex and working capital requirements
- Warns Blinkit losses are likely to persist as the company chases market share over profitability.
Jefferies has maintained a ‘Hold’ rating on Zomato (Eternal) while cutting its target price to ₹250 from ₹255, flagging increasing caution around the company’s quick commerce (Q/C) segment and competitive landscape in food delivery. The brokerage stated that while Q4FY25 results looked solid on paper, the management commentary was more conservative, particularly on near-term growth expectations.
Despite short-term challenges, Zomato’s strong EBITDA gains and Blinkit’s GOV growth of 134% YoY signal long-term potential—but near-term volatility remains a concern for many analysts.
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