Keep an eye on Zomato Share, Macquarie gives target price information


Zomato Ltd shares have fallen 17% so far in 2025, and Macquarie projects a further 44% decline on the stock after the company’s latest Q3 results. Macquarie said Zomato’s December quarter results fell below consensus and its own expectations, driven by the investment in Blinkit and higher employee expenses.

Macquarie issued note

According to Macquarie, Blinkit’s Gross Order Value (GOV) is expected to grow 3.5x (to $11 billion) over FY25-28, with Adjusted EBITDA Margin (percentage of GOV) expected to grow to 3.5% from -1.3% year-to-date. Expected to reach %.

However, Macquarie said, “We see significant downside risk to this margin growth forecast, particularly given heightened competition, and the possibility that negative margins may persist for a longer period of time.”

In the food delivery sector, Macquarie expects a slight decline in GOV for FY26-28 with a 3-year CAGR of 20% and Adjusted EBITDA Margin of 4.5-5%.

What is the new share price target?

Macquarie considers Zomato to be an efficient quick commerce and food delivery platform, but sees the safety margin for the company’s shares as limited. The company is expected to beat consensus forecasts due to increased competition in Quick Commerce. Macquarie has set its DCF-based target price at ₹130, which is 55 times FY27 PE (adjusted for treasury yields).

How is the company’s performance?

In Q3, Zomato’s Quick Commerce GOV grew 120% year-on-year, beating Macquarie’s estimates, driven by strong growth in MTU (Monthly Transacting Users). However, this was likely due to higher marketing spend, which led to GOV’s Adjusted EBITDA Margin at -1.3%, while Macquarie had estimated it to be closer to break-even.

Blinkit added 216 dark stores in the third quarter, bringing its total to 1,007 as of Dec. 31. Zomato has set a target of 2,000 stores by December 2025, which was earlier by December 2026. In the food delivery sector, GOV saw a 17% YoY growth, which was below expectations, and a slight QoQ decline in MTU to 20.5 million. However, Adjusted EBITDA Margin expanded QoQ by 75 bps at 4.3% of GOV.

Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.