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Zomato Ltd.
(ETERNAL)
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Rating:61Neutral
Price Target:
₹297.00
▲(4.14% 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
Scale / Revenue Growth
Rapid multi-year revenue expansion (FY2023–FY2026) indicates strong market penetration and platform scale. Such scale can strengthen competitive advantages—better restaurant selection, advertiser appeal, and bargaining power—supporting durable unit‑economics improvement if operational efficiencies persist.
Negative Factors
Operating Profitability (EBIT)
Despite net income turning positive, core operating profit remains slightly negative, signaling the platform hasn’t yet achieved consistent operating profitability. Persistent negative EBIT could require sustained cost discipline or higher take‑rates to secure durable margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale / Revenue Growth
Rapid multi-year revenue expansion (FY2023–FY2026) indicates strong market penetration and platform scale. Such scale can strengthen competitive advantages—better restaurant selection, advertiser appeal, and bargaining power—supporting durable unit‑economics improvement if operational efficiencies persist.
Read all positive factors
Zomato Ltd. (ETERNAL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.72T
Dividend YieldN/A
Average Volume (3M)959.24K
Price to Earnings (P/E)696.8
Beta (1Y)1.17
Revenue Growth168.56%
EPS Growth-33.26%
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
₹332.00Price Target Upside16.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.11
Revenue Forecast (FY)₹957.08B
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 | ₹2.72T | 696.81 | ― | ― | 168.56% | -33.26% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹59.71B | -184.89 | ― | ― | 8.45% | -266.74% | |
53 Neutral | ₹79.47B | 244.51 | ― | 0.14% | 5.40% | 166.08% | |
52 Neutral | ₹140.74B | -363.67 | ― | ― | 13.34% | -352.55% | |
47 Neutral | ₹283.11B | 66.40 | ― | 0.21% | 17.15% | 103.16% | |
42 Neutral | ₹684.97B | -14.27 | ― | ― | 51.40% | -28.79% |
* General Sector Average
IN:ETERNAL
Zomato Ltd.
281.40
22.75
8.80%
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Zomato Ltd. Corporate Events
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...
Eternal Limited Reports No Deviation in Use of QIP Proceeds
Apr 28, 2026
Eternal Limited has submitted a monitoring agency report for the quarter ended March 31, 2026, detailing the use of funds raised via a qualified institutions placement. The report, prepared by ICRA Limited, confirms there has been no deviation in ...
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.