Zomato is in the news primarily for three intertwined reasons: sharp institutional activity through bulk/block deals, a volatile but improving profit trajectory led by Blinkit and core food delivery, and the Street’s reassessment of valuations after a multi-bagger run in 2024.[1][3] Several large institutional trades in late 2024 and early 2025 have indicated both profit-booking by early investors and accumulation by long-only domestic and foreign institutions, creating short-term supply overhang but also deeper ownership.

On the fundamentals side, Zomato reported a 57% year-on-year decline in net profit to about ₹59 crore for Q3 FY25 (quarter ended December 2024), even as revenue from operations jumped 64% year-on-year to around ₹5,405 crore.[3] Management attributed the profit compression mainly to accelerated investments in expanding its quick-commerce store network, where quarterly losses increased by roughly ₹95 crore, highlighting the trade-off between growth and margins.[3] Subsequent quarters in 2025 showed continued revenue momentum with net sales rising further to ₹5,833 crore in Q4 FY25, ₹7,167 crore in Q1 FY26 and a sharp jump to about ₹13,590 crore in Q2 FY26, reflecting the full consolidation and ramp-up of Blinkit and allied businesses.[4]

From a valuation perspective, despite the profit swings, Zomato trades at an extremely rich trailing P/E multiple of over 1,400x based on TTM earnings of roughly ₹188 crore as of the latest available data, alongside a P/B of about 8.8–9.4x and P/S around 8.6x.[2][4] This multiple embeds high expectations for sustained growth and margin expansion, leaving limited room for execution missteps.

To frame current positioning, consider the latest snapshot of key trading and valuation metrics (Angel One, Smart Investing and exchange data):[2][4]

For investors, the key near-term question is how the market will balance the optimism around Blinkit and Hyperpure’s long runway with concerns about heightened discounting, competition, and elevated valuations.[1][3] In the following sections, we dive deeper into the earnings trajectory, Hyperpure expansion, and risk-return profile.

Zomato’s earnings trajectory into FY25–26 reflects the classic high-growth platform dilemma: strong revenue momentum but volatile profitability due to aggressive reinvestment. The Q3 FY25 result (December 2024 quarter) was a key inflection point in market perception. Net profit fell about 57% year-on-year to roughly ₹59 crore, from ₹138 crore a year ago, despite revenue from operations rising 64% year-on-year to about ₹5,405 crore.[3] The company explicitly linked the profit compression to accelerated investments in its quick-commerce store network, with Blinkit’s quarterly losses up roughly ₹95 crore.[3]

Subsequent quarters showed continued scaling. Net sales climbed to ₹5,833 crore (Q4 FY25), ₹7,167 crore (Q1 FY26) and then surged to around ₹13,590 crore (Q2 FY26), highlighting the ramp-up of quick commerce and ancillary businesses.[4] On a trailing twelve-month basis, consolidated revenue stood near ₹31,995 crore, with TTM profit after tax at about ₹188 crore, which remains modest relative to revenue scale.[2] Key valuation ratios based on this TTM set include P/E ≈ 1,460x, P/B ≈ 9.4x, and P/S ≈ 8.6x, all well above traditional consumption or IT services peers.[2]

To understand the growth-margins trade-off, it helps to look at the quarterly momentum (Smart Investing, Angel One data):[2][4]

Key takeaways for investors:

- Revenue momentum remains strong, aided by Blinkit and higher order frequencies.[3][4] - Margins can be lumpy quarter-to-quarter as Zomato toggles between profitability and reinvestment. - The market’s patience with elevated valuations will depend on the pace at which segment-level losses narrow in quick commerce and B2B.

For fundamental analysts, a useful framework is to separate Zomato into three economic engines: (1) food delivery, (2) Blinkit/quick commerce, and (3) Hyperpure/B2B. Each has a different growth and margin profile, which we compare below.

Beyond core food delivery, Zomato’s B2B supply chain arm Hyperpure and the Blinkit quick-commerce platform are increasingly central to the investment thesis. While granular financial disclosure for Hyperpure alone is limited, management and industry commentary indicate that B2B supplies to restaurants and cloud kitchens are scaling rapidly, improving order fill rates and platform stickiness.[3][7] Hyperpure enables Zomato to integrate further down the value chain – from farm and supplier to restaurant to end-consumer – unlocking potential improvements in margins and data-driven demand planning.

Blinkit, meanwhile, positions Zomato squarely in India’s fast-growing quick-commerce market, which is projected to touch around US$5 billion by 2025 and nearly US$10 billion by 2029, driven by changing consumer preferences and rising demand for convenience.[1] Zomato has been aggressively expanding Blinkit’s dark store and warehouse network, which has weighed on short-term profitability (₹95 crore additional quarterly loss in Q3 FY25), but created a foundation for future operating leverage.[3]

To contextualise Hyperpure and Blinkit against the broader quick-commerce landscape, consider an indicative comparison versus peers (public and private, metrics partly qualitative given limited public data):

From an equity research standpoint, Hyperpure’s significance lies in its potential to:

- Improve take-rates via bundled services to restaurants. - Reduce supply chain volatility for key SKUs. - Enhance data visibility across the value chain, supporting dynamic pricing and better inventory management.

However, B2B models can be margin-thin and working-capital intensive, so investors must scrutinise cash conversion cycles and inventory days over time.

The interaction between Hyperpure and Blinkit is also strategically important: integration of sourcing, warehousing and last-mile logistics across both arms could yield cost efficiencies and faster delivery times, strengthening Zomato’s competitive moat if executed well.

Given Zomato’s elevated multiples, peer comparison within the Indian listed universe is essential for context. Although there is no perfect like-for-like listed peer (Swiggy and Zepto are unlisted), investors often benchmark Zomato against other Indian consumer-tech and platform businesses, as well as traditional consumer names with strong brand power.

Using publicly available data, key valuation metrics for Zomato can be contrasted with select Indian companies from adjacent spaces (indicative, for analytical framing only):

*Indicative metrics; refer to live market data for exact values.

Key observations:

- Zomato trades at a significant premium to established QSR and retail companies on P/E and P/S, reflecting its perceived higher growth and platform scalability. - Relative to global internet peers, Zomato’s current P/S is not unreasonable for a fast-growing platform, but within the Indian context, it leaves a narrower margin of safety if growth or margins disappoint.

For a risk-return view, investors can consider how Zomato slots into different portfolio objectives:

Investors should also track sector-wide regulatory and competitive developments, such as:

- SEBI’s evolving stance on disclosure norms for platform businesses. - Competition Commission of India (CCI) scrutiny of marketplace practices. - Labour and gig-economy regulations that could affect delivery partner costs.

Risk-return must be continuously re-calibrated as these factors evolve.

Pros vs cons of Zomato from a current valuation standpoint:

Given Zomato’s combination of strong growth, early-stage profitability and rich valuation, investors should treat it as a high-beta satellite allocation rather than a core defensive holding. Both retail and professional investors can adopt structured frameworks to manage entry, sizing and risk.

From a fundamental perspective, one approach is to wait for clearer evidence of:

- Sustained positive PAT over 6–8 consecutive quarters. - Improving ROE/ROCE towards mid-single digits, with visibility to double digits. - Segment-level loss reduction in Blinkit and improving operating leverage in Hyperpure.

From a technical and flow-based perspective, traders and tactically oriented investors may:

- Use corrections towards key support zones (such as the 200-day moving average highlighted in expert commentary) to accumulate in tranches.[6] - Monitor high-volume block deal days for signs of institutional accumulation vs distribution.

A simple checklist for position sizing and entry planning:

For investors using mutual funds rather than direct stocks, exposure to Zomato often comes through new-age tech or flexi-cap funds that hold consumer-tech names. While specific scheme portfolios change, many actively managed Indian equity funds have selectively added Zomato post-listing.

To illustrate how Zomato might sit within a fund context, consider a generic comparison (illustrative) of two fund strategies:

*Illustrative only; refer to individual scheme disclosures for actual numbers.

Direct equity investors should compare their self-managed exposure and risk tolerance to what diversified funds typically run, and avoid concentration beyond those ranges unless they have a very high risk appetite and deep research capability.