Zomato Q3 Results: Loss Widens, Food Delivery Business Nears Operational Break-Even

In its earnings release, the company said it turned adjusted Ebitda positive (Hyperpure, Feeding India, Zomato, excluding Blinkit) in January 2023.

"We have seen an industry-wide slowdown in the food delivery business since late October (post Diwali). This trend has been seen across the country but more so in the top eight cities," Zomato said.

The firm attributed it to a "macro slowdown for the mid-market segment, boom in dining out for the premium-end, and boom in travel at the premium-end".

It said there is a good chance of the company to reach adjusted Ebitda break-even—excluding quick commerce—in the current quarter if it is "able to bank some execution related wins in the next few weeks (which should offset the negative impact of Zomato Gold on our margins)".

Shares of the company ended 0.3% higher at Rs 54.4 apiece, compared to a similar rise in the Sensex. Still, the stock is trading 28% below its IPO price.

Of the 25 analysts tracking the company, 18 maintain 'buy', four suggest 'hold', and three recommend 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 46.1%.