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Zomato-parent Eternal Ltd to announce Q1 FY2026 results on Monday with analyst optimism
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Revenue expected to rise 13.5% to Rs 6,624.2 crore; EBITDA forecast at Rs 178.4 crore
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Goldman Sachs forecasts 62% YoY revenue growth and expects margins to improve gradually
Zomato-parent Eternal Ltd. is set to announce its financial results for the first quarter of the financial year ending March 2026 on Monday and it has gained the confidence of a number of analysts.
Analysts across brokerages remain optimistic on Zomato's near-term performance, expecting strong topline growth led by both food delivery and Blinkit. Brokerages like Goldman Sachs and HDFC remain bullish, citing Zomato's product innovations and sustained momentum in expanding segments like Bistro.
However, caution lingers around margins and competitive intensity. While brokerages expect Blinkit's margins to improve gradually with scale, they acknowledge that profitability may not follow a linear path due to ongoing reinvestments and persistent rivalry. Analysts highlight that competition, particularly in quick commerce, will likely remain elevated for the next two to three years, delaying meaningful margin expansion.
Zomato Q1 Consolidated Results Preview (Bloomberg Estimates)
Revenue seen 13.5% higher at Rs 6,624.2 crore.
Ebitda seen higher at Rs 178.4 crore.
Margin seen at 2.6%.
Net profit seen higher at Rs 105 crore.
Goldman Sachs | Rating: Buy | Target: Rs 330
Goldman Sachs identifies three key variables that will determine Zomato's stock performance going forward: Blinkit’s growth, Blinkit’s margins, and food delivery growth.
Of these three, the brokerage expects at least two to show directional improvement in the June quarter, supported by sustained near-term momentum in both quick commerce and food delivery.
Goldman forecasts 62% year-on-year revenue growth for Zomato in Q1, a step up from the 60% annual growth posted in the March quarter, and anticipates a sharp sequential rise in group adjusted Ebitda.
The stock offers a favourable risk-reward, according to the brokerage, with a bull-case upside of 56% and a bear-case downside of 26%.
The brokerage remains bullish on Zomato's quick commerce arm Blinkit, believing that competition concerns are overdone despite the large total addressable market.
While Goldman Sachs acknowledges that competitive intensity will remain a structural feature of the quick commerce space, it expects margins to improve gradually over time, led by scale benefits and meaningful operating leverage, even if margin expansion is not linear.
Axis Capital | Rating: Buy | Target: Rs 311
Axis Capital highlights three areas to watch in Zomato's Q1 results: Growth in food delivery, trends in quick commerce (Blinkit) margins, and management commentary on competition.
The brokerage expects some improvement in underlying trends across the quick commerce segment, both for Zomato and Swiggy.
Zomato's segmental adjusted Ebitda margin is projected to see a modest improvement in the June quarter.
Axis Capital does not expect Rapido's entry into the food delivery space to meaningfully impact Zomato's business, suggesting that competitive intensity remains manageable.
UBS | Rating: Buy | Target: Rs 315
UBS estimates food delivery GMV growth of 15% annually for Zomato, in line with Q4 growth trends (16–17%) and better than earlier market concerns of a slowdown to 10–12%.
The brokerage believes growth is holding steady, supported by Zomato's low-AOV, market-expansion initiatives such as Snacc, Bistro, and Bolt, which are helping widen the customer base.
Margin improvement is expected to be modest at 30–35bps sequentially, as both Zomato and Swiggy continue to reinvest in expansion efforts, which may limit short-term profitability upside.
For quick commerce, UBS estimates GMV growth of 120% annually for Zomato (Blinkit), highlighting the segment's strong growth trajectory.
However, quick commerce remains loss-making, reflecting the high cost of scale and competition.
BofA | Rating: Neutral | Target: Rs 261
BofA expects Zomato to post better food delivery growth than last quarter, though not yet returning to the 20% annual growth levels seen in earlier periods.
The brokerage outlines key upside risks to their view:
Lower-than-expected competitive intensity, which could support margin improvement.
Faster-than-anticipated growth in both food delivery and quick commerce, potentially leading to better operating leverage and profitability.
However, they also flag notable downside risks:
High competitive pressure in the food and quick commerce segments could persist for two to three years, with no visible signs of consolidation.
Quick commerce may remain structurally loss-making over the long term, limiting margin expansion despite topline growth.
HDFC Securities | Rating: Reduce | Target: Rs 250
HDFC expects new-age companies like Zomato to sustain strong annual growth, driven by a continued focus on customer acquisition, with revenue growth estimates ranging from 24–60%.
For Zomato, adjusted revenue is projected to grow 55.6% yearly in to Rs 7,030 crore.
HDFC is building in an adjusted Ebitda margin of 3.8% for Zomato in the June quarter, emphasising continued progress toward profitability.
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