Zomato – Should you order?

FY25 I’m not sure because of Blinkit, otherwise Food Delivery PAT is already at 1800 crs odd run rate (Q4 PAT was 396crs)… losses from other verticals may take the console number to around 1000crs

FY26 onwards, Blinkit should start reporting profits (post expansion phase of FY25), assuming 2% PAT margin on GoV, we get around 800 crs profit (assuming 40k cr GoV by FY26). Food delivery PAT (assuming 25% growth) should be around 2250 crs. Total consol PAT of around ~3100 crs.

Note – above is conservative, because they have guided for 4-5% stable state EBITDA margins on GoV. The actual PAT margin may not too low from that guided number… but still I’ve assumed 2% on GoV. Further, while a 4x GoV growth has been guided, I’ve taken a conservative 40k cr as GoV when it can be higher since macro easing is likely in the following few months.

Also you can read any of the analyst report and these are the rough assumptions… infact most numbers are higher since we’re in a subdued macro environment and in all likelihood, Zomato should go back to 30%+ Rev growth & 31/32% PAT growth on FY25 base, which itself is likely to be atleast 25%

EDIT – Income on treasury may reduce since global rates are likely to come down… Zomato consol has a huge other income component as of now… in either case, Cash is a huge optionality in the business since they’re now generating upwards of 250 cr every quarter