Tue Jan 21 11:54:30 UTC 2025: ## Zomato Shares Plunge 10% After Q3 Profit Drop
**Mumbai, India** – Zomato’s share price experienced a significant drop of nearly 10% in early Tuesday trading, following the release of its third-quarter (Q3) FY25 financial results. The food delivery giant reported a sharp decline in net profit, falling to Rs 59 crore (approximately $7.1 million USD) compared to Rs 138 crore (approximately $16.6 million USD) during the same period last year – a 57.25% decrease.
While Zomato’s revenue from operations increased to Rs 5,405 crore (approximately $651 million USD), the overall growth was described as muted. Despite the share price decline, several brokerages remain optimistic about Zomato’s long-term prospects, particularly regarding its quick-commerce subsidiary, Blinkit.
Nomura, Jefferies, and Nuvama Institutional Equities all pointed to Blinkit’s potential for strong growth, with projections suggesting it could secure a top-two position in the quick-commerce market. While acknowledging the increased competition and short-term impact on profitability from Blinkit’s expansion, these firms maintained positive ratings on Zomato stock, albeit with revised target prices. Bernstein also retained an “Outperform” rating.
Target prices from various brokerages range from Rs 255 to Rs 400, reflecting a divergence in opinion on the stock’s valuation. Despite the optimistic outlook from several analysts, investors reacted negatively to the significant profit decrease, resulting in the substantial share price drop. The company’s performance will be closely watched in the coming quarters.
First Piper 