Zomato Ltd. (ETERNAL) AI Stock Analysis

• Market Cap: ₹2.26T
• Dividend Yield: N/A
• Average Volume (3M): 959.24K
• Price to Earnings (P/E): 631.9
• Beta (1Y): 1.13
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 3,988
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Internet Content & Information
• EPS (TTM): 0.11
• Shares Outstanding: 9,650,351,000
• 10 Day Avg. Volume: 1,536,510
• 30 Day Avg. Volume: 959,237
• PEG Ratio: 6.02
• Price to Book (P/B): 5.62
• Price to Sales (P/S): 8.41
• P/FCF Ratio: -271.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹370.00
• Price Target Upside: 29.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.5
• Revenue Forecast (FY): ₹551.57B

• Rating: 58 Neutral
• Price Target: ₹244.00 ▼(-14.45% Downside)
• Action: N/A Date: 02/19/26
• Date: Action: N/A 02/19/26

The score is primarily supported by improving profitability and strong growth alongside a low-leverage balance sheet. It is held back by unstable cash flow (negative FY2025 free cash flow and weak cash conversion), mixed technical signals, and a significant valuation risk due to the extremely high P/E and lack of dividend yield.

Positive Factors

Strong multi-year revenue growth

Zomato's multi-year top-line expansion has been substantial, reflecting durable demand and platform adoption. Sustained high revenue growth increases scale benefits, strengthens bargaining power with restaurants/advertisers, and creates room to improve unit economics over the next 2–6 months.

Move to positive net income

The shift to reported net profit across FY2024–FY2025 demonstrates the business model beginning to monetize at scale. This structural improvement reduces reliance on external capital, supports reinvestment in growth initiatives, and makes durable profitability a realistic medium-term target if operating trends hold.

Conservative balance sheet and low leverage

A low debt-to-equity ratio signals financial flexibility and lower solvency risk. This conservative capital structure allows Zomato to absorb volatility, fund Blinkit and platform investments organically or at low financing cost, and maintain strategic optionality through industry cycles.

Negative Factors

Operating profitability still negative (EBIT)

EBIT remaining negative indicates core operations are not yet consistently self-sustaining. Reliance on non-operating items or one-off gains to deliver net income leaves profitability fragile; sustained shareholder returns require converting operating margins to positive, a multi-quarter structural challenge.

Weak profit-to-cash conversion; negative FCF in FY2025

Weak conversion of earnings into cash and a return to negative free cash flow signal volatile internal cash generation. This undermines sustained reinvestment ability, increases financing needs for growth initiatives, and raises execution risk if investment intensity or working capital needs persist.

Historically low or negative returns on equity

Persistently weak ROE shows the company has struggled to convert capital into attractive shareholder returns. Even with recent net income, only modest ROE improvement implies a longer road to sustained capital efficiency and pressures expectations for durable investor returns over the medium term.

Zomato Ltd. Business Overview & Revenue Model

Company Description

Eternal Limited is an online restaurant guide and food ordering platform. The Company offers platform connects customers, restaurants, and delivery partners to search and discover restaurants, read and write customer generated reviews, order food delivery, book a table, and make payments while dining-out at restaurants.

How the Company Makes Money

Zomato makes money primarily by monetizing transactions and demand generation across its platforms. Key revenue streams include: (1) Food delivery: It earns commissions/fees from restaurant partners on orders placed via its platform, and may also earn delivery-related charges collected on orders (where applicable). (2) Advertising and restaurant services: Restaurants pay for in-app advertising and visibility (e.g., sponsored listings and promotional placements) and other partner-focused offerings intended to drive customer acquisition and orders. (3) Quick commerce (Blinkit): It generates revenue from the sale/delivery of items ordered on Blinkit, which typically includes product-level economics (margin on goods sold) and/or platform/fulfilment and delivery fees, along with potential brand/merchant advertising on the quick-commerce platform. (4) Subscriptions/consumer programs: The company has historically offered paid membership programs that provide benefits such as reduced/waived delivery fees or partner offers; revenue comes from subscription fees (current program names/structures may vary over time). The company’s earnings are influenced by order volumes, take-rate (commission/fees), ad spending by merchants and brands, delivery and fulfilment costs, partner availability (restaurants, stores, riders), and competitive dynamics in food delivery and quick commerce.

Zomato Ltd. Financial Statement Overview

Summary

Strong revenue growth and a move to positive net income in FY2024–FY2025 support the score, along with a conservative balance sheet (low debt-to-equity ~6.7%). Offsetting this, operating profitability remains weak (EBIT still negative) and cash flow quality is a key concern, with FY2025 free cash flow turning negative and weak profit-to-cash conversion.

Income Statement

Revenue growth has been strong over the last few years, accelerating to 12.6% in FY2025 (annual) after a much larger multi-year expansion. Profitability has meaningfully improved: the company moved from sizable losses in FY2020–FY2023 to positive net income in FY2024–FY2025, with FY2025 net margin at ~2.6%. That said, operating profitability is still fragile—EBIT remains negative in FY2024 and FY2025—implying the bottom-line profit is not yet fully supported by core operating earnings, and margins remain thin.

Balance Sheet

The balance sheet looks conservatively financed, with low leverage (debt-to-equity ~6.7% in FY2025) and a sizable equity base that has grown materially over time. Total assets have also expanded meaningfully alongside the business. The main weakness is that returns on equity have been low/negative historically (notably negative in FY2022–FY2023 and modest in FY2024), suggesting the company is still in the process of translating scale into consistently attractive shareholder returns.

Cash Flow

Cash generation is mixed. Operating cash flow turned positive in FY2024 and remained positive in FY2025, but the conversion of profit into operating cash weakened in FY2025 (operating cash flow is only ~9% of net income). Free cash flow is the key concern: after being positive in FY2024, it swung back to negative in FY2025 and declined sharply versus the prior year, indicating renewed cash burn at the discretionary/investment level and higher volatility in cash outcomes.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	248.28B	202.43B	121.14B	70.35B	41.20B	19.16B
Gross Profit	105.00B	146.78B	92.32B	56.40B	35.39B	17.24B
EBITDA	14.45B	17.14B	8.89B	-5.32B	-10.60B	-6.69B
Net Income	1.63B	5.27B	3.51B	-9.71B	-12.09B	-8.13B
Balance Sheet
Total Assets	381.15B	356.23B	233.56B	215.99B	173.27B	87.03B
Cash, Cash Equivalents and Short-Term Investments	46.43B	86.55B	34.05B	94.08B	65.97B	37.05B
Total Debt	61.18B	20.45B	7.49B	5.07B	703.00M	725.00M
Total Liabilities	73.00B	53.13B	29.50B	21.46B	8.28B	6.11B
Stockholders Equity	308.22B	303.17B	204.13B	194.60B	165.06B	80.99B
Cash Flow
Free Cash Flow	-11.05B	-6.28B	4.31B	-9.47B	-7.52B	-10.28B
Operating Cash Flow	2.58B	3.08B	6.46B	-8.44B	-6.93B	-10.18B
Investing Cash Flow	-80.56B	-79.93B	-3.47B	-331.00M	-79.38B	-52.44B
Financing Cash Flow	78.52B	80.42B	-2.07B	-1.18B	87.50B	64.02B

Zomato Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRCTC	72 Outperform	₹421.64B	34.72	―	1.32%	7.66%	14.36%
BLS	70 Outperform	₹99.19B	20.31	―	0.31%	41.61%	44.11%
RAILTEL	66 Neutral	₹87.38B	47.77	―	0.79%	29.92%	22.87%
WELENT	63 Neutral	₹64.25B	74.06	―	0.58%	9.11%	16.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETERNAL	58 Neutral	₹2.26T	631.93	―	―	―	―
DELHIVERY	57 Neutral	₹301.05B	190.69	―	―	9.17%	1685.95%

Zomato Ltd. Corporate Events

Eternal Limited Shareholders Back Board Resolutions, Name Goyal Vice Chairman

Eternal Limited has announced the results of a recent postal ballot, conducted via remote e-voting, in which shareholders approved all resolutions proposed by the board. The company confirmed that the scrutinizer’s report, along with detailed voting results, is available on its website and the e-voting agency’s portal, underscoring procedural transparency and regulatory compliance.

Shareholders cleared the re-appointment of four independent directors – Aparna Popat Ved, Kaushik Dutta, Namita Gupta and Sutapa Banerjee – including approval of their remuneration through special resolutions. They also approved the appointment of founder Deepinder Goyal as Vice Chairman and Non-Executive Director, a move that strengthens board continuity and leadership oversight as Eternal navigates its post-rebranding phase.