Zomato’s shares faced notable fluctuations in early trading on the Bombay Stock Exchange (BSE) today. The food delivery giant’s stock initially dipped nearly 5%, hitting a low of Rs 242.45 due to profit booking following its Q2FY25 results. However, the shares rebounded, rising to Rs 260.15 by 10:22 am.

The company’s latest earnings report revealed a remarkable 389% surge in profits, totaling Rs 176 crore, up from Rs 36 crore in the same quarter last year. Additionally, Zomato’s revenue increased by 68%, reaching Rs 4,799 crore. This growth is attributed to enhanced margins in its food delivery segment and the rapid expansion of its quick-commerce business, Blinkit.

Investors are closely monitoring the stock as the company continues to demonstrate strong financial performance amid a competitive landscape.

Zomato’s Share Prices Today: Gains Amid Positive Market Trends

Reports reflect, Zomato’s share price has risen 2.28% today, reaching ₹262.05, in line with its peers. The stock currently has a P/E ratio of 391.80 and a return on equity (ROE) of 1.76%. Analysts forecast a median 1-year upside of 9.52%, targeting a price of ₹287.00.

Promoter holding stands at 0.00%, while mutual fund (MF) ownership has increased from 2.18% to 2.41% in the September quarter. Foreign institutional investment (FII) has also risen from 46.13% to 47.28%. Meanwhile, benchmark indices Nifty and Sensex have gained 0.34% and 0.41%, respectively.

Motilal Oswal Highlights Zomato’s Growth Potential Amid Stable Food Delivery Business

According to reports, Motilal Oswal has expressed confidence in Zomato’s food delivery segment, describing it as stable while identifying significant long-term potential in its quick-commerce venture, Blinkit. The brokerage anticipates that Zomato will see an improvement in profit margins in the coming years, projecting PAT margins of 4.7% for FY25, 8.6% for FY26, and 12.9% for FY27.

Maintaining a ‘buy’ rating, Motilal Oswal has set a target price of Rs 330 for Zomato’s shares, suggesting a potential upside of 28% from current levels. This optimistic outlook reflects the firm’s belief in Zomato’s ability to disrupt industries such as retail and grocery through its innovative offerings.

Zomato’s Growth In A Blink- Blinkit

Zomato is prioritizing the expansion of its infrastructure, especially through the rapid growth of Blinkit’s dark store network. Dark stores are fulfillment centers that cater specifically to online orders, allowing for quicker delivery of groceries and essentials. Zomato aims to establish 2,000 dark stores by December 2026, which would enhance its logistics capabilities and improve delivery efficiency. This aggressive expansion is part of Zomato’s strategy to strengthen its presence in the quick-commerce sector and better compete in the retail and grocery markets.