Tue Jan 21 14:04:19 IST 2025: ## Zomato Shares Face Steep Drop After Disappointing Q3 Results

**MUMBAI** – Zomato Ltd. shares are already down 17% in 2025, and investment firm Macquarie predicts a further 44% decline based on its analysis of the company’s disappointing third-quarter earnings. The firm cited lower-than-expected results driven by investments in Blinkit (Zomato’s quick commerce arm) and increased employee expenses.

Macquarie expressed concerns about the ambitious growth projections for Blinkit’s gross order value (GOV), forecasting a significant margin expansion that the firm believes is unlikely given the intensely competitive market. While acknowledging Blinkit’s strong year-on-year growth (120% GOV increase in Q3), Macquarie highlighted that this was fueled by substantial marketing expenditure, resulting in a negative adjusted EBITDA margin of -1.3% of GOV. The firm also noted a slower-than-expected growth in Zomato’s food delivery segment.

Despite acknowledging Zomato’s efficiency as a quick commerce and food delivery platform, Macquarie issued a price target of Rs 130, implying a significantly lower valuation. The firm’s concerns center on the sustainability of Blinkit’s projected growth and margins in a highly competitive landscape. Zomato’s management, however, has expressed confidence, accelerating its target for Blinkit dark stores to 2,000 by December 2025.

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