Zomato Ltd focuses primarily on food delivery rather than the broader e-commerce sector, making it a leader in the food delivery ecosystem. With a debt-to-equity ratio of 0.05 and a 1.12% return on equity, it demonstrates stability but limited profitability across e-commerce.
Table of Contents
Overview Of the E-Commerce Sector
The e-commerce sector is experiencing rapid transformation driven by digital adoption, mobile-first consumer behaviour and innovative payment solutions. Technology integration and artificial intelligence are reshaping customer experiences and operational efficiencies.
Rising competition, customer acquisition costs and last-mile delivery challenges present obstacles while creating opportunities for hyperlocal delivery, quick commerce and personalized shopping experiences across urban and rural markets.
Financial Analysis of Zomato Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 12,114 | 7,079 | 4,192 |
| Expenses | 12,072 | 8,290 | 6,043 |
| Operating Profit | 42 | -1,210 | -1,851 |
| OPM % | 0 | -16 | -39 |
| Other Income | 847 | 682 | 792 |
| EBITDA | 889 | -529 | -1,356 |
| Interest | 72 | 49 | 12 |
| Depreciation | 526 | 437 | 150 |
| Profit Before Tax | 291 | -1,014 | -1,221 |
| Tax % | -20.62 | 4.3 | -0.16 |
| Net Profit | 351 | -971 | -1,223 |
| EPS | 0.4 | -1.16 | -1.54 |
* Consolidated Figures in Rs. Crores
Zomato Limited Company Metrics
Zomato Ltd showcased significant financial growth in FY 24 with sales of ₹12,114 crores, a net profit of ₹351 crores and total assets of ₹23,356 crores. Key metrics highlight improvements in revenue, profitability and operational efficiency compared to FY 23.
Sales Growth: Sales increased from ₹7,079 crores in FY 23 to ₹12,114 crores in FY 24, a growth of 71.14%. This reflects strong expansion and increased market penetration in the food delivery segment.
Expense Trends: Expenses rose from ₹8,290 crores in FY 23 to ₹12,072 crores in FY 24, a 45.7% increase. While significant, the expense growth aligns with higher revenue, indicating operational scaling.
Operating Profit & Margins: Operating profit improved to ₹42 crores in FY 24, a turnaround from the ₹1,210 crores loss in FY 23. Operating profit margin increased to 0.32% from -15.59%, demonstrating better cost control and revenue optimization.
Profitability Indicators: Net profit improved significantly to ₹351 crores in FY 24 from a loss of ₹971 crores in FY 23. EPS turned positive at ₹0.40, a notable recovery from -₹1.16 in the previous year.
Taxation & Dividend: Tax impact was -20.62% in FY 24 compared to 4.30% in FY 23, benefiting net profit. The dividend payout remains zero, reflecting reinvestment priorities for growth.
Key Financial Metrics: Total assets grew to ₹23,356 crores in FY 24, up from ₹21,599 crores in FY 23. Non-current liabilities increased to ₹867 crores, while reserves rose to ₹19,545 crores, showcasing financial resilience and capacity for future expansion.
Zomato Stock Performance
Zomato Ltd delivered outstanding returns, with a 1-year ROI of 119% and a 3-year ROI of 26.5%. These figures demonstrate strong growth potential, reflecting the company’s ability to generate significant investor value across short- and medium-term horizons.
| Period | Return on Investment (%) |
| 1 Year | 119 |
| 3 Years | 26.5 |
Zomato Shareholding Pattern
Zomato Ltd’s shareholding patterns for Sep-24 show a decline in FII holdings to 52.53% from 54.11% in Jun-24, while DII holdings increased to 17.34%. Retail participation remained steady at 30.11%, reflecting balanced investor activity.
| All values in % | Sep-24 | Jun-24 | Mar-24 |
| FII | 52.53 | 54.11 | 55.11 |
| DII | 17.34 | 15.79 | 15.28 |
| Retail & others | 30.11 | 30.09 | 29.63 |
Zomato Partnerships and Acquisitions
Zomato has established strategic partnerships with restaurants, cloud kitchens and delivery partners nationwide. The company has strengthened its market position through acquisitions like Blinkit for quick commerce and UberEats India to expand its food delivery network.
Their collaborations extend to payment providers, logistics partners and technology companies. These partnerships enhance customer experience through integrated payment solutions, efficient delivery networks and advanced order-tracking capabilities.
Strategic investments in food tech startups and restaurant supply chain companies strengthen their ecosystem. These acquisitions help optimize operations, reduce delivery times and expand service offerings beyond food delivery.
Zomato Peer comparison
Zomato Ltd, with a market cap of ₹2,61,765.76 crores and a P/E of 352.78, leads in 1-year returns at 119.28%, outperforming peers like Info Edge (68%) and Just Dial (24.49%), showcasing its market dominance and growth potential.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % | CP Rs. |
| Zomato Ltd | 271.25 | 261765.76 | 352.78 | 1.12 | 0.84 | 119.28 | 1.14 | 0 | 271.25 |
| Swiggy | 545.95 | 122208.03 | 0 | 0 | 0 | 0 | -24.39 | 0 | 545.95 |
| Info Edge. (India) | 8,637 | 1,11,928 | 231 | 2.44 | 36 | 68 | 3.65 | 0.25 | 8637.45 |
| One 97 | 1,014 | 64,647 | 0 | -9.07 | -10.72 | 59.61 | -8.5 | 0 | 1014.25 |
| Indiamart Inter. | 2256.35 | 13545.35 | 31 | 17.65 | 71.79 | -17.1 | 23.93 | 0.89 | 2256.35 |
| Just Dial | 998.65 | 8492.55 | 27 | 3.63 | 59.14 | 24.49 | 4.81 | 0 | 998.65 |
| One Mobikwik | 627.8 | 4,877 | 347 | 9.2 | 2.46 | 8.96 | 0 | 627.8 |
Future of Zomato
Zomato is focused on expanding its quick commerce operations, enhancing restaurant partner relationships and developing innovative technology solutions. Their strategy includes strengthening last-mile delivery capabilities and exploring new revenue streams through value-added services.
The company plans to leverage artificial intelligence for personalized recommendations and efficient route optimization. Investment in sustainable practices and an electric delivery fleet demonstrates a commitment to environmental responsibility.
Growth initiatives include expanding into smaller cities, developing subscription-based services and enhancing partner support systems. The focus remains on achieving profitability while maintaining market leadership through technological innovation.
How To Invest In Zomato Share?
To invest in Zomato shares, open a demat and trading account with a broker like Alice Blue. Complete the KYC process, research Zomato’s performance and place a buy order during market hours, specifying the quantity and price to initiate your investment seamlessly.
Ensure your demat account is active and adequately funded. Evaluate Zomato’s financial reports, industry position and market trends. Use fundamental or technical analysis to identify the right entry point. Understanding past performance and future potential ensures informed investment decisions aligned with your financial goals.
After purchasing Zomato shares, regularly monitor your portfolio. Keep track of quarterly earnings, business developments and market dynamics. This proactive approach helps optimize returns, mitigate risks and adjust holdings to align with evolving market conditions and company performance.
Zomato – FAQs
Zomato maintains a market capitalization of Rs. 261,766 crores, reflecting its dominant position in the food delivery ecosystem. This valuation demonstrates investor confidence in the company’s growth strategy and market leadership potential.
Zomato dominates India’s food delivery segment with extensive restaurant partnerships and technological infrastructure. Their innovative solutions and market presence establish them as a leader in the food-tech e-commerce space.
Zomato’s strategic acquisitions include Blinkit for quick commerce, UberEats India operations and investments in various food-tech startups. These acquisitions strengthen their market position and service offerings significantly.
Zomato operates a leading food delivery platform connecting restaurants with customers. They provide restaurant discovery, food delivery services, quick commerce solutions and various technology-enabled services for partners.
Zomato was founded by Deepinder Goyal and operates as a publicly listed company. While founders maintain significant ownership, the company operates under professional management with diverse shareholding.
Major shareholders include founder Deepinder Goyal, institutional investors, venture capital firms and public shareholders. The diverse ownership structure supports strong corporate governance and market confidence.
Zomato operates in the food-tech and e-commerce industry, specializing in food delivery, restaurant discovery, quick commerce and technology solutions for the food service ecosystem.
Zomato demonstrates strong order growth through expanded restaurant partnerships, quick commerce integration and enhanced delivery capabilities. Increased user base and order frequency drive continuous revenue expansion.
Investors can purchase Zomato shares through registered stockbrokers or online trading platforms after opening demat and trading accounts with Alice blue. Additional investment options include mutual funds featuring the company.
Current market metrics, growth potential and industry leadership position indicate a balanced valuation. Strong fundamentals, strategic initiatives and market expansion plans support the company’s valuation.
Zomato’s future looks promising with a focus on quick commerce integration, artificial intelligence implementation and sustainable growth strategies. Their technological innovation and market expansion support long-term development.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
