Zomato Ltd. (ETERNAL) AI Stock Analysis

• Market Cap: ₹2.45T
• Dividend Yield: N/A
• Average Volume (3M): 959.24K
• Price to Earnings (P/E): 985.6
• Beta (1Y): 1.03
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.5
• Revenue Forecast (FY): ₹550.70B

• Rating: 58 Neutral
• Price Target: ₹293.00 ▲(2.73% Upside)
• 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

Revenue growth & return to net profit

Zomato's rapid top-line expansion and return to positive net income signal the platform is scaling and beginning to convert scale into profitability. Durable demand, improving take-rates and ad monetization can sustain earnings if operating losses continue to narrow and user economics remain stable.

Conservative balance sheet / low leverage

A low debt-to-equity ratio provides financial flexibility to fund growth, capex and working capital without large refinancing risk. This conservative capital structure supports durable investment in logistics, technology and Blinkit expansion while limiting solvency risk during market cycles.

Diversified monetization and platform ecosystem

Multiple revenue streams—commissions, advertising, subscriptions and Blinkit sales—reduce concentration risk and allow cross-selling. A broad platform ecosystem improves lifetime value and margin upside as order density and merchant ad spend scale, supporting sustainable revenue diversification.

Negative Factors

Operating profitability still negative

Despite positive net income, negative EBIT implies core operations are not yet reliably profitable and may rely on non-operating items or one-offs. Sustainable earnings depend on improving unit economics, lowering delivery/fulfillment costs, and growing higher-margin ad and subscription revenue.

Negative free cash flow & weak conversion

Reversal to negative FCF and weak profit-to-cash conversion constrain the company's ability to self-fund expansion and returns. Persistent cash volatility increases reliance on external financing for Blinkit/logistics investments and raises risk if revenue growth or merchant ad spend slows.

Historically low returns on equity

Sustained low or negative ROE indicates past investments have yielded poor shareholder returns. If capital allocation does not improve unit economics and operating margins, the company may struggle to convert scale into durable shareholder value despite revenue growth.

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 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	Mar 2024	Mar 2023	Mar 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	202.43B	121.14B	70.35B	41.20B	19.16B
Gross Profit	146.78B	92.32B	56.40B	35.39B	17.24B
EBITDA	17.14B	8.89B	-5.32B	-10.60B	-6.69B
Net Income	5.27B	3.51B	-9.71B	-12.09B	-8.13B
Balance Sheet
Total Assets	356.23B	233.56B	215.99B	173.27B	87.03B
Cash, Cash Equivalents and Short-Term Investments	86.55B	34.05B	94.08B	65.97B	37.05B
Total Debt	20.45B	7.49B	5.07B	703.00M	725.00M
Total Liabilities	53.13B	29.50B	21.46B	8.28B	6.11B
Stockholders Equity	303.17B	204.13B	194.60B	165.06B	80.99B
Cash Flow
Free Cash Flow	-6.28B	4.31B	-9.47B	-7.52B	-10.28B
Operating Cash Flow	3.08B	6.46B	-8.44B	-6.93B	-10.18B
Investing Cash Flow	-79.93B	-3.47B	-331.00M	-79.38B	-52.44B
Financing Cash Flow	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	₹491.48B	34.48	―	1.32%	7.66%	14.36%
BLS	70 Outperform	₹117.74B	18.27	―	0.31%	41.61%	44.11%
RAILTEL	66 Neutral	₹103.95B	32.69	―	0.79%	29.92%	22.87%
WELENT	63 Neutral	₹69.32B	22.93	―	0.58%	9.11%	16.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETERNAL	58 Neutral	₹2.45T	985.62	―	―	―	―
DELHIVERY	57 Neutral	₹327.40B	214.61	―	―	9.17%	1685.95%