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Zomato Ltd.
(ETERNAL)
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Rating:61Neutral
Price Target:
₹328.00
▲(15.01% Upside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by strong financial trajectory (rapid revenue growth, positive net income, and improved operating cash flow) but is held back by still-negative EBIT, uneven free cash flow and higher FY2026 debt. Technicals are neutral overall, while the extremely high P/E meaningfully pressures the valuation component.
Positive Factors
Revenue Growth
Exceptional multi-year top-line growth demonstrates durable scale and strong platform adoption. Rapid revenue expansion supports network effects for restaurants, advertisers and delivery partners, increases take-rate leverage potential, and creates a structural base for future margin improvement as fixed costs are spread.
Negative Factors
Negative EBIT
Persistent negative EBIT shows the core operating model has not yet delivered consistent operating profitability, meaning growth still requires substantial reinvestment or subsidies. Long-term value requires sustained margin recovery; otherwise net income gains may be fragile and reliant on non-operating items.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Exceptional multi-year top-line growth demonstrates durable scale and strong platform adoption. Rapid revenue expansion supports network effects for restaurants, advertisers and delivery partners, increases take-rate leverage potential, and creates a structural base for future margin improvement as fixed costs are spread.
Read all positive factors
Zomato Ltd. (ETERNAL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.92T
Dividend YieldN/A
Average Volume (3M)959.24K
Price to Earnings (P/E)641.6
Beta (1Y)1.18
Revenue Growth190.50%
EPS Growth40.03%
CountryIN
Employees3,988
SectorGeneral
Sector StrengthN/A
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.37
Shares Outstanding9,650,351,000
10 Day Avg. Volume1,536,510
30 Day Avg. Volume959,237
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
₹345.75Price Target Upside21.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.78
Revenue Forecast (FY)₹971.14B
Zomato Ltd. Business Overview & Revenue Model
Company Description
Eternal Limited manages a comprehensive digital ecosystem for the food service industry. This online platform acts as a central hub, seamlessly connecting consumers with restaurants and their delivery networks. Through its interface, users can eas...
How the Company Makes Money
Zomato Ltd. generates revenue primarily through a mix of commissions, advertising, platform/service fees, logistics-related charges, and quick-commerce monetization. (1) Food ordering and delivery: The company earns (a) commissions from restaurant...
Zomato Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
76
Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 543.64B | 202.43B | 121.14B | 70.35B | 41.20B |
| Gross Profit | 99.99B | 146.78B | 92.32B | 56.40B | 35.39B |
| EBITDA | 26.04B | 17.14B | 8.89B | -5.32B | -10.60B |
| Net Income | 3.66B | 5.27B | 3.51B | -9.71B | -12.09B |
Balance Sheet | |||||
| Total Assets | 407.36B | 356.23B | 233.56B | 215.99B | 173.27B |
| Cash, Cash Equivalents and Short-Term Investments | 66.14B | 86.55B | 34.05B | 94.08B | 65.97B |
| Total Debt | 45.92B | 20.45B | 7.49B | 5.07B | 703.00M |
| Total Liabilities | 97.63B | 53.13B | 29.50B | 21.46B | 8.28B |
| Stockholders Equity | 309.80B | 303.17B | 204.13B | 194.60B | 165.06B |
Cash Flow | |||||
| Free Cash Flow | -11.19B | -6.28B | 4.31B | -9.47B | -7.52B |
| Operating Cash Flow | 6.32B | 3.08B | 6.46B | -8.44B | -6.93B |
| Investing Cash Flow | 5.36B | -79.93B | -3.47B | -331.00M | -79.38B |
| Financing Cash Flow | -8.42B | 80.42B | -2.07B | -1.18B | 87.50B |
Zomato Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | ₹2.92T | 641.60 | ― | ― | 190.50% | 40.03% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹59.75B | -370.22 | ― | ― | 10.17% | -283.44% | |
53 Neutral | ₹79.09B | 249.39 | ― | 0.16% | 6.76% | 212.75% | |
52 Neutral | ₹140.99B | -509.05 | ― | ― | 14.72% | -133.37% | |
47 Neutral | ₹289.24B | 67.42 | ― | 0.29% | 17.15% | 103.26% | |
47 Neutral | ₹786.55B | -18.46 | ― | ― | 46.79% | 4.92% |
* General Sector Average
IN:ETERNAL
Zomato Ltd.
310.80
11.90
3.98%
IN:DEVYANI
Devyani International Ltd.
125.10
-35.60
-22.15%
IN:JUBLFOOD
Jubilant Foodworks Limited
482.00
-146.51
-23.31%
IN:SAPPHIRE
Sapphire Foods India Ltd.
202.60
-102.30
-33.55%
IN:SWIGGY
Swiggy Limited
288.90
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-26.68%
IN:WESTLIFE
Westlife Foodworld Limited
587.05
-106.15
-15.31%
Zomato Ltd. Corporate Events
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...
Eternal Limited Faces INR 6.49 Crore GST Demand, Plans to Appeal
Jun 10, 2026
Eternal Limited has disclosed that the Deputy Commissioner (ST), State Special Circle-I, Andhra Pradesh has issued an adjudication order for the April 2023 to March 2024 period, demanding goods and services tax of INR 6.49 crore, along with intere...
Eternal Limited Publishes Q4 FY26 Earnings Call Transcript
May 6, 2026
Eternal Limited has released the official transcript of its Q4 FY26 earnings conference call, held on April 28, 2026, and filed it with both BSE and NSE in compliance with Indian listing regulations. The document, signed by Company Secretary and C...
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.