Zomato shares fall 6% after Q4 results but brokerages hike target price: Should you buy?

Zomato share price fell 6% in early trade on Tuesday after the company announced its Q4 results. Zomato shares declined as much as 5.98% to ₹182.10 apiece on the BSE.

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The food delivery platform Zomato reported a consolidated net profit of ₹175 crore in the fourth quarter of FY24 as against a loss of ₹188 crore in the same period a year ago. The net profit grew 27% from ₹138 crore posted in the December quarter.

Zomato’s revenue from operations in Q4FY24 increased 73% to ₹3,562 crore from ₹2,056 crore, YoY. The March quarter’s gross order value (GOV) grew across B2C businesses, from 51% YoY to ₹13,536 crore.

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At the operating level, the company posted an EBITDA of ₹86 crore, an improvement from the loss of ₹226 crore incurred during the same period last year.

Zomato’s quick commerce arm Blinkit achieved operational EBITDA break-even in March 2024.

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Analysts maintained their bullish view on Zomato shares with some raising target price on the stock led by the continued outperformance of Blinkit.

Here’s what analysts said on Zomato Q4 results and Zomato share price:

Emkay Global Financial Services Zomato posted steady operational results, with revenue ahead of Emkay Global’s estimates whereas the margin miss was due to higher-than-expected ESOP costs. The brokerage firm has mostly retained FY26E earnings per share (EPS) estimates, but lowered FY25E EPS by ~20%, factoring in the slower profitability for Blinkit on the aggressive store addition plan and higher ESOP costs. 

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