Zomato shares in focus after Q3 PAT falls 57% YoY. Must you purchase, promote or maintain?

The income from operations in Q3FY25 stood at Rs 5,405 crore, which was up by 64% over Rs 3,288 crore within the corresponding quarter of the earlier monetary yr.
On a sequential foundation, the revenue after tax (PAT) was down by 66% over Rs 176 crore reported in Q2FY25. In the meantime, the topline was larger by 13% on a sequential foundation versus Rs 4,799 crore reported within the July-September quarter.
Zomato’s gross order worth or GOV of the B2C companies grew 57% YoY whereas rising by 14% QoQ to Rs 20,206 crore in Q3FY25.
Zomato in its letter to the shareholders mentioned that it was at the moment going by means of a broad-based slowdown in demand which began through the second half of November.
Additionally Learn: RBI injects Rs 76,000 crore extra to spice up liquidity, rein in name cash charges
Must you purchase, promote, or maintain Zomato’s inventory? Here is what analysts say:
UBS
UBS maintained its ‘Purchase’ score on Zomato, setting a goal value of Rs 320.
The corporate reported total first rate outcomes, although there was a stunning slowdown in meals supply. Nevertheless, this was offset by constructive margin growth. Moreover, Zomato has accelerated its darkish retailer rollout, now focusing on 2,000 shops by December 2025, a yr sooner than the beforehand set objective of December 2026.
Additionally Learn: Finances 2025: Can KAVACH be a game-changer for Siemens, Quadrant Future, and 4 extra shares?
Nomura
Nomura has maintained its ‘Purchase’ score on Zomato, however revised the goal value to Rs 290 from the earlier Rs 320.
The report highlights decrease near-term profitability within the Fast Commerce section. Regardless of a slowdown in meals supply, the section has proven stunning profitability. The Fast Commerce section has additionally superior its retailer opening targets by a yr. Nomura factors out that sturdy execution and a strong steadiness sheet are key positives for Zomato.
Macquarie
Macquarie maintained an ‘Underperform’ score on Zomato, with a goal value of Rs 130.
The report notes that aggressive depth is impacting profitability and that Blinkit is anticipated to expertise a chronic interval of destructive margins. Macquarie sees a restricted margin of security for the corporate. Moreover, meals supply is anticipated to see a light draw back, with a projected 20% GOV CAGR for FY26-28.
BofA
BofA reiterated a ‘Purchase’ score on Zomato, with a goal value of Rs 375.
Zomato’s Q3 numbers missed consensus estimates on EBITDA and EPS. Blinkit’s adjusted EBITDA loss stood at Rs 103 crore, with administration attributing the upper losses to sooner growth. The corporate expects Blinkit’s losses to proceed for the subsequent 1-2 quarters however anticipates greater than 100% GOV progress for FY25 and FY26. Moreover, meals income progress at 17% was decrease than estimated.
(Disclaimer: Suggestions, solutions, views and opinions given by the specialists are their very own. These don’t characterize the views of The Financial Instances)