Zomato Share Price Target for 2025: Detailed Analysis

Looking to invest in Zomato? Get the latest Zomato stock price prediction for 2025. Our comprehensive analysis covers market trends, company performance, and expert opinions to help you make informed investment decisions

Introduction to Zomato
Current Financial Performance
Key Growth Drivers for 2025
Zomato’s Strategic Focus for 2025
SWOT Analysis
Zomato Share Price Target for 2025
Conclusion

Introduction to Zomato

Zomato Limited, incorporated in 2010, has become a leading player in India’s online food service market. It operates across various segments, including food delivery, dining-out services, and restaurant supplies through its subsidiary Hyperpure. With an extensive global and domestic presence, Zomato services over 18 million active monthly transacting users and manages 500 million+ food orders annually.

Zomato Growth Metrics and Revenue Breakdown

Current Financial Performance

As of Q1FY25, Zomato reported strong performance with YoY growth of 27%-28% in Gross Order Value (GOV). Management is focused on expanding profit margins, targeting a contribution margin of 4%-5% in the near term. The stock currently trades at ₹265 with a market capitalization of ₹2,33,978 Cr, and its future outlook remains promising with an expected boost in order volumes.

Zomato Key Metrics	Value
Market Cap	₹ 2,33,978 Cr.
Current Price	₹ 265
High / Low	₹ 298 / ₹ 101
Compounded Profit Growth (3 Years)	34%
Stock P/E	389
ROCE	1.14%
ROE	1.12%
Dividend Yield	0.00%

Key Growth Drivers for 2025

Expansion in Food Delivery

Zomato’s food delivery segment remains its core business, contributing 70% to total revenue as of Q2FY24. The company aims to sustain its leadership in the Indian market by enhancing customer experience through innovations like Zomato Gold. With 3.8 million Gold members contributing 40% of GOV, Zomato plans to increase average order volumes significantly by 2025.

Quick Commerce with Blinkit

Blinkit, Zomato’s quick-commerce platform, is rapidly scaling with a positive contribution of 1.3% as of Q2FY24. Blinkit is expected to open 2,000 stores by 2026, with robust plans to expand in tier-2 and tier-3 cities. This expansion is anticipated to drive significant revenue growth, positioning Blinkit as a vital growth engine for Zomato’s share price trajectory.

Dining Out Segment

Although the dining-out segment contributed only 6% to total revenue, Zomato continues to invest in restaurant partnerships and dining-out services to strengthen its foothold. In FY25, this segment may see a rebound due to the increasing number of partnerships with premium restaurants and high-value customers.

Zomato’s Strategic Focus for 2025

Zomato has laid out a clear strategy focused on:

Market Share Expansion: Zomato is closing the gap in southern India, where its market share is steadily approaching the national average.
Technology and Data Analytics: Leveraging artificial intelligence and machine learning, Zomato aims to enhance customer engagement and delivery efficiency, contributing positively to its overall profitability.
Profitability over Discounts: In contrast to the discount-heavy strategies in previous years, Zomato is focusing on improving profitability while keeping promotional costs in check. This is expected to stabilize margins and build investor confidence.

SWOT Analysis

Opportunities	Threats
Expansion in quick commerce and hyper-local delivery	Rising competition from players like Swiggy and Dunzo
Improving margins through tech-driven efficiencies	Regulatory hurdles and high-profile exits

Based on Zomato’s current trajectory, growth initiatives, and market dynamics, analysts expect the stock price to range between ₹350-₹400 by 2025. The bullish outlook is driven by:

Continued expansion in food delivery and quick commerce.
A focus on profitability and higher average order volumes.
Increasing dominance in the Indian food service market.

Year	Target Price
2025	₹ 350 – ₹ 400

Conclusion

Zomato is well-positioned to maintain its leadership in India’s food delivery and quick commerce markets. Zomato possesses strong growth drivers. There are technological advancements. The company has made strategic investments. As a result, Zomato’s share price is expected to see a significant upward trend by 2025. Investors can anticipate a return on their investments as Zomato continues to strengthen its market position while focusing on margin expansion and profitability.

Zomato: Common Questions and Answers

What is Zomato’s main revenue source?
Answer: Zomato’s primary revenue comes from food delivery, contributing around 70% to its total revenue.
How will Blinkit contribute to Zomato’s growth in 2025?
Answer: Blinkit’s store expansions and SKU additions are expected to significantly boost quick commerce revenue, supporting Zomato’s overall growth strategy.
Is Zomato stock a good buy for the long term?
Answer: With strong growth potential and improving profitability, Zomato is considered a promising stock for long-term investors.
What are the risks involved in investing in Zomato?
Answer: Investing in Zomato carries risks like rising competition, regulatory hurdles, and low profitability in international operations.
How does Zomato plan to improve its margins?
Answer: Zomato is focusing on cost optimization through technology and reducing promotional costs to improve profit margins.
What is the expected Zomato share price by 2025?
Answer: Analysts predict that Zomato’s share price could range between ₹350 to ₹400 by 2025, driven by growth in its food delivery and quick commerce segments.
How is Zomato planning to maintain profitability?
Answer: Zomato is focusing on reducing promotional costs, enhancing technological efficiencies, and expanding its high-margin businesses like Blinkit to maintain profitability in the long term.
What factors are driving Zomato’s growth?
Answer: Key growth drivers include the expansion of food delivery services, the rapid scale-up of Blinkit in the quick commerce sector, and increased membership of Zomato Gold.
Is Zomato Gold membership beneficial for investors?
Answer: Zomato Gold members contribute significantly to the Gross Order Value (GOV), accounting for 40%. This is a positive indicator for long-term investors as it reflects customer loyalty and recurring revenue potential.
Will Zomato expand internationally again?
Answer: Zomato has exited most international markets to focus on its core operations in India. As of now, no plans for international expansion have been announced for the near future.
What are Zomato’s plans for Blinkit by 2025?
Answer: By 2025, Zomato aims to expand Blinkit’s quick commerce services by opening over 2,000 stores, significantly increasing its presence across India, particularly in tier-2 and tier-3 cities.
What challenges could Zomato face in the coming years?
Answer: Zomato may face challenges like intense competition from Swiggy, Dunzo, and other emerging players, regulatory scrutiny, and managing operational costs while maintaining growth.

Disclaimer

The information provided in this article is for educational purposes only and should not be construed as financial advice. Investing in stocks carries risks, and readers are advised to conduct their own research or consult with a financial advisor before making investment decisions. The author and the website do not take responsibility for any financial losses incurred based on the information provided here. We are not SEBI Registered