Zomato, the foremost food delivery and restaurant discovery platform in India, has established itself as a familiar entity across the nation. Following its initial public offering in 2021, the company’s stock price has garnered significant interest from investors, analysts, and culinary enthusiasts. As we gaze into the future, there is considerable curiosity regarding the potential trajectory of the Zomato Share Price Target 2026.
Zomato Overview
Established in 2008, Zomato began as a platform for discovering restaurants but quickly diversified into the online food delivery sector. Throughout the years, Zomato has effectively secured a significant share of the Indian market through its user-friendly application, extensive network of restaurants, and efficient delivery service.
Zomato made its public debut in July 2021, achieving a notable entrance on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Although the initial performance of its stock was somewhat varied, the company has persisted in expanding and diversifying its operations, including forays into online grocery delivery and meal subscription services.
Zomato Share Price Target 2026
Considering the factors outlined, we shall examine possible scenarios for Zomato Share Price Target by the year 2026.
Current Price ₹ 233/-
| Year | Bullish Scenario | Intermediate Situation | Bearish Scenario |
|---|---|---|---|
| 2026 | ₹ 390 – ₹ 500 | ₹ 340 – ₹ 400 | ₹ 300 – ₹ 350 |
| 2030 | ₹ 1100 – ₹ 1250 | ₹ 940 – ₹ 1150 | ₹ 800 – ₹ 950 |
- Bullish Scenario: In a favorable scenario, should Zomato effectively enhance its market presence, broaden its sources of income, and attain profitability, the company’s stock price may witness significant appreciation. A target range of ₹390-₹500 by 2026 appears feasible, provided the company maintains a competitive edge, extends its reach into smaller urban areas, and explores new revenue opportunities such as grocery delivery and cloud kitchens.
- Intermediate Situation: In a moderate scenario, where Zomato experiences consistent growth while encountering challenges from competitors and operational inefficiencies, the share price may witness a more tempered rise. Under these circumstances, a target range of ₹340-₹400 by 2026 appears to be a plausible estimate, indicating steady growth and a gradual enhancement in profitability.
- Bearish Scenario: In a negative outlook, should Zomato encounter difficulties in preserving its market share, confront regulatory challenges, or be unable to attain profitability by 2026, its stock price may experience downward pressure. Under these circumstances, the shares could be valued between ₹300 and ₹350, indicating growth that is slower than anticipated or various market obstacles.
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Zomato Company Essentials
- Market Cap : ₹ 2,26,300.72 Cr.
- Enterprise Value : ₹ 2,25,841.72 %
- No. of Shares : 965.04 Cr.
- P/E : 127.07***** is too high
- P/B : 6.82
- Face Value : ₹ 1
- Div. Yield : 0 %
- Book Value (TTM) : ₹ 34.40
- Operating Revenue : ₹ 459 Cr.
- Debt : ₹ 0 Cr.
- Promoter Holding : 0 %
- EPS (TTM) : ₹ 1.85
- Sales Growth : 40.68
- ROE : 6.59 %
- ROCE : 6.38 %
- Profit Growth : 1,071.79%
Zomato Peer Comparison
| COMPANY | PRICERs. | MCAPCr. | P/B | P/E | EPSRs. | ROE% | ROCE% | P/S | EV/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| Zomato | 234.50 | 2,26,339.32 | 6.82 | 127.09 | 1.85 | 6.59 | 6.38 | 34.18 | 108.59 |
| Swiggy | 433.65 | 98,296.73 | 4.90 | 0 | -8.34 | 0 | -19.83 | 15.43 | -59.36 |
| FSN E-Commerce | 179 | 51,171.47 | 31.82 | 319.44 | 0.56 | 7.71 | 6.07 | 198.37 | 381.44 |
| Brainbees Solutions | 476.55 | 24,804.02 | 4.22 | 0 | -1.20 | -1.80 | -0.79 | 11.47 | 201.27 |
| Indiamart Intermesh | 2,166 | 13,129.03 | 6.44 | 28.04 | 77.99 | 19.21 | 24.98 | 11.53 | 20.08 |
| Sat Kartar Shopping | 319.94 | 5.93 | 50.74 | 4.00 | 99.24 | 99.92 | 2.50 | 26.83 |
Zomato Quarterly Result (All Figures in Cr.)
| PARTICULARS | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 |
|---|---|---|---|---|---|
| Net Sales | 1,782 | 1,824 | 2,048 | 2,151 | 2,226 |
| Total Expenditure | 1,609 | 1,635 | 1,831 | 1,897 | 1,932 |
| Operating Profit | 173 | 189 | 217 | 254 | 294 |
| Other Income | 236 | 269 | 279 | 269 | 311 |
| Interest | 5 | 4 | 4 | 4 | 4 |
| Depreciation | 19 | 19 | 19 | 22 | 27 |
| Exceptional Items | 0 | -39 | -3 | 0 | 0 |
| Profit Before Tax | 385 | 396 | 470 | 497 | 574 |
| Tax | 1 | 0 | 0 | 76 | 80 |
| Profit After Tax | 384 | 396 | 470 | 421 | 494 |
| Adjusted EPS (Rs) | 0.45 | 0.46 | 0.54 | 0.48 | 0.55 |
Zomato Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)
| PARTICULARS | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Net Sales | 2,336.35 | 1,713.90 | 3,611 | 4,707 | 6,622 |
| Total Expenditure | 4,574.63 | 2,052.90 | 5,249 | 5,272 | 6,089 |
| Operating Profit | -2,238.29 | -339 | -1,638 | -565 | 533 |
| Other Income | 181.01 | 136.60 | 508.10 | 838 | 969 |
| Interest | 11.13 | 7.90 | 5.50 | 16 | 18 |
| Depreciation | 73.60 | 128.90 | 133.40 | 140 | 73 |
| Exceptional Items | -309.18 | -546.80 | 171 | 0 | -39 |
| Profit Before Tax | -2,451.18 | -886 | -1,097.80 | 117 | 1,372 |
| Tax | 0 | 0 | 0.20 | 0 | 1 |
| Net Profit | -2,451.18 | -886 | -1,098 | 117 | 1,371 |
| Adjusted EPS (Rs.) | -12.19 | 0 | -1.44 | 0.14 | 1.58 |
Zomato Balance Sheet (All Figures are in Crores.)
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Equity and Liabilities | |||||
| Share Capital | 252.43 | 454.90 | 764.30 | 836 | 868 |
| Total Reserves | 601.41 | 7,754.50 | 16,002.90 | 19,970 | 21,907 |
| Borrowings | 0 | 0 | 0 | 0 | 0 |
| Other N/C liabilities | 1,468.93 | 66.40 | 70.40 | 185 | 159 |
| Current liabilities | 662.57 | 472.50 | 663.10 | 938 | 1,394 |
| Total Liabilities | 2,985.35 | 8,748.30 | 17,500.70 | 21,929 | 24,328 |
| Assets | |||||
| Net Block | 1,579.51 | 1,450.50 | 1,347.50 | 1,402 | 1,398 |
| Capital WIP | 0 | 0 | 0 | 0 | 0 |
| Intangible WIP | 0.77 | 0.10 | 0 | 0 | 0 |
| Investments | 200.31 | 311.70 | 3,535.60 | 8,862 | 18,445 |
| Loans & Advances | 17.66 | 8 | 79.20 | 1,075 | 201 |
| Other N/C Assets | 5.04 | 3,002 | 5,201.60 | 1,846 | 737 |
| Current Assets | 1,182.06 | 3,976 | 7,336.80 | 8,744 | 3,547 |
| Total Assets | 2,985.35 | 8,748.30 | 17,500.70 | 21,929 | 24,328 |
Zomato Shareholding Pattern
| Summary | Dec 2024 | Dec 02, 2024 | Nov 29, 2024 | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Sep 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| FII | 47.3% | 48.0% | 50.2% | 52.5% | 54.1% | 55.1% | 54.9% | 54.7% | 54.4% | 54.6% | 56.7% | 57.9% |
| DII | 20.5% | 19.6% | 20.8% | 17.3% | 15.8% | 15.3% | 15.5% | 13.0% | 9.9% | 8.0% | 7.4% | 6.4% |
| Public | 26.1% | 26.3% | 27.7% | 28.8% | 28.6% | 28.1% | 28.0% | 30.4% | 33.6% | 35.2% | 33.6% | 33.2% |
| Others | 6.1% | 6.1% | 1.2% | 1.3% | 1.5% | 1.6% | 1.7% | 1.8% | 2.1% | 2.2% | 2.3% | 2.5% |
“The financial figures mentioned in this analysis are derived from Ticker by Finology for accuracy and reliability.”
Key Elements Affecting Zomato Share Price Target
Various elements will influence Zomato’s stock price in the coming years, such as market dynamics, the company’s operational results, competitive landscape, and overall economic conditions. It is essential to examine these critical factors in greater detail.
The growth of the food delivery sector
Zomato’s core business of food delivery is anticipated to experience ongoing growth as an increasing number of individuals opt for online food ordering. Although Zomato currently possesses a substantial market share in India, there remains considerable potential for further expansion. The Indian online food delivery sector is expected to expand swiftly in the coming years, offering a significant opportunity for Zomato.
- Enhanced Market Reach in Secondary and Tertiary Urban Areas: Zomato’s current market penetration is primarily focused on metropolitan areas. As the company aims to broaden its reach into smaller towns and cities, it has the potential to tap into a new customer demographic. This expansion could play a crucial role in enhancing revenue growth, thereby increasing Zomato’s appeal as an investment opportunity.
- Diversification of Services: Zomato has broadened its offerings beyond food delivery by introducing online grocery delivery via Zomato Market, as well as premium services such as Zomato Gold, which provides discounts and exclusive promotions at various restaurants. These strategic expansions may enable the company to secure a greater market share and generate additional revenue streams.
Financial Viability and Economic Performance
Zomato’s capacity to maintain steady profitability will be a key determinant of its share price in the years ahead. Although the company has experienced significant revenue growth, it has encountered difficulties regarding its profitability.
- Route to Profitability: Currently, Zomato is working towards achieving profitability. The organization has encountered significant marketing and operational expenses that have adversely affected its financial performance. Nevertheless, with a growing scale, enhanced operational efficiency, and improved customer retention strategies, Zomato possesses the potential to attain profitability in the forthcoming years. Should Zomato succeed in minimizing its losses and ultimately achieve profitability by 2026, it is expected to positively influence its stock price.
- Margins and Cash Flow Analysis: Zomato’s capacity to control expenses, enhance profit margins, and produce robust cash flow will be crucial for its long-term success. Investors are closely monitoring the company’s performance in these aspects, and consistent advancements are expected to propel the stock price higher.
Market Competition Overview
The online food delivery sector is characterized by intense competition, featuring prominent companies like Swiggy, Amazon Food, and various regional competitors. Zomato Share Price Target will be affected by its ability to effectively manage and thrive within this challenging landscape.
- Market Presence and Consumer Commitment: As competition becomes more fierce, Zomato must focus on preserving its market share while simultaneously enhancing customer loyalty. The effectiveness of Zomato’s branding, user experience within the app, quality of customer service, and efficiency of delivery are essential for sustaining its competitive advantage. Should Zomato excel beyond its rivals in these aspects, it will contribute to growth and, consequently, elevate its share price.
- Collaborations and Mergers: Zomato has engaged in multiple acquisitions previously, including the purchase of the grocery delivery service, Blinkit. Future acquisitions or collaborations within related sectors, such as cloud kitchens, food technology advancements, or logistics firms, may enable Zomato to broaden its operational capabilities and improve its growth potential.
Market Sentiment and Consumer Attitudes
The overall economic landscape and evolving consumer preferences will likewise influence Zomato Share Price Target.
- The Embrace of Online Food Delivery Services: The pandemic hastened the shift towards online food delivery services, and although there has been a certain level of normalization, food delivery remains a favored choice among consumers. The broader trend towards convenience, rapid service, and online shopping is expected to provide ongoing advantages to platforms such as Zomato in the future.
- Consumer Expenditure and Available Income.: Zomato’s operations flourish when consumers are inclined to invest in dining experiences or in-home food orders. Economic downturns or fluctuations in disposable income may negatively impact Zomato’s revenue growth. Conversely, rising income levels and a growing middle class are likely to enhance the demand for online food delivery services.
Government Oversight and Policy Assistance
Zomato, being a publicly listed entity in India, is governed by various regulatory frameworks and policies that can affect its operational activities. The government’s stance on data privacy, labor regulations, taxation, and digital commerce laws will play a significant role in shaping Zomato’s market operations.
- Supportive Government Regulations: Should the Indian government maintain its support for the digital economy and startups, Zomato may encounter increased opportunities for growth. Furthermore, initiatives that promote online enterprises and enhance infrastructure in tier 2 and tier 3 cities could significantly advance Zomato’s expansion strategies.
- Fiscal Obligations and Regulatory Adherence: Zomato is required to adhere to a range of tax laws and regulations. Any substantial alterations to the taxation framework within the digital sector may impact Zomato’s profitability and, consequently, its Zomato Share Price Target.
Conclusion
Zomato’s share price target for 2026 will be significantly influenced by its capacity to manage competition, broaden its market presence, and achieve profitability. Should the company maintain its growth trajectory and leverage opportunities within the burgeoning food delivery sector, there exists considerable potential for an increase in its stock value. Nevertheless, it is essential to acknowledge the challenges posed by profitability, competitive pressures, and economic conditions.
Investors are advised to carefully observe Zomato Share Price Target financial results, strategic initiatives, and market conditions in the upcoming years to make well-informed investment choices. Although the outlook appears optimistic, investing in Zomato necessitates a comprehensive assessment of the potential opportunities and associated risks.
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