Zomato Q4 Results Review - ‘Blitz’ing It In Quick Commerce; Innovating In Food Delivery: ICICI Securities

ICICI Securities Report

Blinkit is accelerating its dark store addition trajectory, having achieved adjusted Ebitda breakeven in March 2024. Management guided for doubling store count to 1,000 by FY25 (~300 store pipeline ready). In our view, this is a strategic move to gain market share in QC through geographical expansion while competitors are still focused on profit improvement.

Given faster growth ambitions, management has guided for near-zero Ebitda in the next two-three quarters. We have cut our Blinkit adjusted Ebitda estimate for FY25E by 68%; however, FY26E Blinkit adjusted Ebitda estimate is revised up by 11.4%.

In food delivery we think the recent innovations in bulk ordering and veg only fleet should boost revenue growth; while gold plan optimisation and priority delivery should aid further profit improvement. Maintain Buy, target price Rs 300.

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