Zomato’s stock price surged by 19% today, reaching a record high. This remarkable rise follows the company’s strong performance in the first quarter of FY25. Zomato reported a significant increase in net profit and revenue, which has boosted investor confidence.
Q1 Financial Highlights
Zomato’s net profit for Q1 FY25 jumped to ₹253 crore. This is a massive increase from the ₹2 crore profit reported in the same period last year¹. The company’s revenue from operations also saw a substantial rise, growing by 74% year-on-year to ₹4,206 crore². This impressive growth is attributed to the strong performance across its various business segments.
Business Segments Performance
The gross order value (GOV) for Zomato’s B2C businesses, including food delivery, quick commerce, and going-out, increased by 53% year-on-year to ₹15,455 crore². The food delivery segment alone saw a 27% growth, while quick commerce surged by 130%². The going-out segment also performed well, with a 106% increase in GOV².
Market Reaction
Following the announcement of the Q1 results, Zomato’s stock price surged to a new high of ₹278.45 per share³. This 19% increase reflects the market’s positive response to the company’s robust financial performance. Analysts have also raised their target prices for Zomato’s stock, with some predicting it could reach ₹350¹.
Brokerage Firms’ Views
Several brokerage firms have expressed optimism about Zomato’s future prospects. Motilal Oswal reiterated its buy rating on Zomato with a target price of ₹300². Nomura also retained a buy rating and increased its target price to ₹280². Bernstein maintained an outperform rating and raised its target price to ₹275². These positive assessments are based on Zomato’s strong growth trajectory and improving profitability.
Future Outlook
Zomato’s management is optimistic about the future. The company plans to expand its quick commerce business, Blinkit, aiming to reach a total of 2,000 dark stores by 2026². This expansion is expected to further boost Zomato’s revenue and profitability.
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