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Zomato Ltd.
(ETERNAL)
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Rating:60Neutral
Price Target:
₹336.00
▲(17.81% Upside)
Action:Reiterated
Date:10/21/26
The score is driven primarily by solid financial progress (rapid revenue growth and a shift to positive net income/operating cash flow) but held back by uneven free cash flow and higher FY2026 leverage. Technicals are neutral-to-soft in the near term, while valuation is a significant headwind due to the very high P/E. Earnings-call commentary is supportive on expansion and long-term targets but tempered by competitive and cost pressures and uncertain AI monetization.
Positive Factors
Exceptional Revenue Scale-Up
The sharp expansion in revenue demonstrates substantial platform scaling across food delivery and quick commerce. Growing transaction activity can deepen network effects, improve delivery density, and create a larger base for advertising and other higher-margin monetization over the next several quarters.
Negative Factors
Core Operating Profitability Remains Unproven
Persistently negative EBIT shows that reported profitability has not yet translated into consistently positive operating profit. Until core operations cover all operating costs sustainably, rapid growth may continue to require investment and execution improvements, limiting earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Revenue Scale-Up
The sharp expansion in revenue demonstrates substantial platform scaling across food delivery and quick commerce. Growing transaction activity can deepen network effects, improve delivery density, and create a larger base for advertising and other higher-margin monetization over the next several quarters.
Read all positive factors
Zomato Ltd. (ETERNAL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.01T
Dividend YieldN/A
Average Volume (3M)1.19M
Price to Earnings (P/E)662.6
Beta (1Y)1.29
Revenue Growth143.65%
EPS Growth159.25%
CountryIN
Employees21,995
SectorGeneral
Sector StrengthN/A
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.47
Shares Outstanding9,650,351,000
10 Day Avg. Volume1,140,668
30 Day Avg. Volume1,185,461
Financial Highlights & Ratios
PEG Ratio-15.68
Price to Book (P/B)6.76
Price to Sales (P/S)3.85
P/FCF Ratio-187.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹430.00Price Target Upside50.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.48
Revenue Forecast (FY)₹989.27B
Zomato Ltd. Business Overview & Revenue Model
Company Description
Eternal Limited, together with its subsidiaries, provides e-commerce platform services to restaurant partners, quick commerce merchants, delivery partners, theatres, sports facilities, and event organizers in India and internationally. The company...
How the Company Makes Money
Zomato primarily earns revenue through a mix of consumer-facing and business-facing monetization across its platform businesses:
1) Food ordering and delivery
- Commissions from restaurants: Zomato charges partner restaurants a commission on the ...
Zomato Ltd. Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Positive
The call was broadly constructive, supported by strong Quick Commerce expansion prospects, robust paybacks in smaller cities, continued growth in larger markets, improving competitive visibility, and ongoing investment in AI opportunities. However, management also highlighted higher competitive intensity in food delivery and Quick Commerce, rising indirect costs, flat Quick Commerce contribution margins, negligible agentic-commerce traction, and uncertainty around Dark.ai's eventual monetization. Highlights outweighed the lowlights, but management retained a cautious tone around forward-looking AI outcomes and detailed financial guidance.Positive Updates
Food Delivery Growth Investments Are Producing Results
Eternal said it has consistently increased investments over the last few quarters in new customer acquisition and in driving frequency among existing customers, with good outcomes from certain experiments. The company expects this investment trend to continue.
Negative Updates
Higher Food Delivery Competitive Intensity
Management said competitive intensity in food delivery was higher in the last quarter than in the previous few quarters, partly driven by Zomato, and acknowledged that new players are entering the food category.
Read all updates
Q2-2027 Updates
Positive
Negative
Food Delivery Growth Investments Are Producing Results
Eternal said it has consistently increased investments over the last few quarters in new customer acquisition and in driving frequency among existing customers, with good outcomes from certain experiments. The company expects this investment trend to continue.
Read all positive updates
Company Guidance
Management said food delivery margins will be maintained broadly, with margins expected to remain flattish over the “next one or 2 year,” as investment in growth continues; Blinkit NOV growth is expected to pick up starting December quarter on a year-over-year basis, without a short-term margin reduction from accelerated store addition; about 90% to 95% of Quick Commerce is now 1P, with no more incremental working capital change expected on that account; steady-state NOV per day could reach about INR 1,100 or INR 11 lakh rupees per day per store versus INR 9 lakh today; the INR 2.5 crore store addition CapEx figure is a blended number, and the billion-dollar EBITDA guidance for FY29 is maintained; a large part of new-store expansion will be in smaller cities, while more than 70% of NOV in mature cities is EBITDA positive.Zomato Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
76
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 674.08B | 543.64B | 202.43B | 121.14B | 70.35B | 41.20B |
| Gross Profit | 85.32B | 99.99B | 146.78B | 92.32B | 56.40B | 35.39B |
| EBITDA | 13.33B | 26.04B | 17.14B | 8.89B | -5.32B | -10.60B |
| Net Income | 4.33B | 3.66B | 5.27B | 3.51B | -9.71B | -12.09B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 407.36B | 356.23B | 233.56B | 215.99B | 173.27B |
| Cash, Cash Equivalents and Short-Term Investments | 66.14B | 66.14B | 76.38B | 34.05B | 94.08B | 65.97B |
| Total Debt | 0.00 | 45.92B | 20.45B | 7.49B | 5.07B | 703.00M |
| Total Liabilities | -309.73B | 97.63B | 53.13B | 29.50B | 21.46B | 8.28B |
| Stockholders Equity | 309.73B | 309.80B | 303.17B | 204.13B | 194.60B | 165.06B |
Cash Flow | ||||||
| Free Cash Flow | -7.50B | -11.19B | -6.28B | 4.31B | -9.47B | -7.52B |
| Operating Cash Flow | 380.00M | 6.32B | 3.08B | 6.46B | -8.44B | -6.93B |
| Investing Cash Flow | 690.00M | 5.36B | -79.93B | -3.47B | 4.57B | -79.38B |
| Financing Cash Flow | -3.44B | -8.42B | 80.42B | -2.07B | -1.27B | 87.50B |
Zomato Ltd. Technical Analysis
Neutral
285.20
Price Trends
323.64
Negative
299.84
Positive
278.74
Positive
Market Momentum
-1.30
Positive
39.96
Neutral
40.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ETERNAL, the sentiment is Neutral. The current price of 285.2 is below the 20-day moving average (MA) of 325.50, below the 50-day MA of 323.64, and above the 200-day MA of 278.74, indicating a neutral trend. The MACD of -1.30 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 40.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ETERNAL.
Zomato Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | ₹3.01T | 662.60 | ― | ― | 143.65% | 159.25% | |
57 Neutral | ₹269.08B | 61.18 | ― | 0.29% | 16.26% | 75.87% | |
56 Neutral | ₹143.33B | -517.97 | ― | ― | 14.72% | -133.37% | |
56 Neutral | ₹63.14B | -385.94 | ― | ― | 10.17% | -283.44% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | ₹631.56B | -14.49 | ― | ― | 46.79% | 4.92% | |
45 Neutral | ₹83.26B | 262.61 | ― | 0.07% | 6.76% | 213.21% |
* General Sector Average
IN:ETERNAL
Zomato Ltd.
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-7.13%
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Zomato Ltd. Corporate Events
Eternal Limited Approves Fresh Grant of Over 4.1 Million Employee Stock Options
Oct 1, 2026
Eternal Limited, formerly Zomato Limited, has approved a major grant of employee stock options under three existing schemes, totaling 4,179,012 options across ESOP 2014, ESOP 2021 and ESOP 2024. Each option is convertible into one equity share at ...
Eternal Limited Issues Shareholders’ Letter in Line with SEBI Disclosure Norms
Jul 22, 2026
Eternal Limited has notified stock exchanges that it has issued a shareholders’ letter dated July 22, 2026, in compliance with Regulation 30 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirement...
Eternal Limited Shifts Nugget Business to Subsidiary in AI-Focused Restructuring
Jul 22, 2026
Eternal Limited, formerly Zomato Limited, operates technology-led platform businesses and is expanding into B2B AI-driven support services through its wholly owned subsidiary, Carthero Technologies Private Limited. The group uses internal restruct...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.