Financial Growth and Future Outlook of Zomato (Eternal Ltd.)

Zomato, which is now officially known as Eternal Ltd. is a company from India that uses technology to deliver food and other things. The company helps people order food from restaurants using its app. They make money from delivery fees commissions from restaurants, advertising and subscriptions like Zomato Gold. The 'Blinkit' business is also very important because it delivers groceries and daily essentials very fast. Zomato is popular in India, and has a lot of users but it also spends a lot of money to operate. The company spends most of its money on paying delivery partners giving discounts to customers, technology and marketing to attract and keep users in a market.

My financial model shows that Zomato has had strong revenue growth over the last two years. The company made around ₹12,114 crore in FY24 and ₹20,243 crore in FY25. Based on this, I predict that Zomato will make around ₹25,900 crore in FY26 and ₹31,000 crore in FY27. The reason for this growth could be Blinkit, getting popular and more people ordering food online in India. Because of this I think Zomato will keep growing at a rate of 25-28% per year. I chose this rate because Zomato has been growing quickly over the last few years especially because of Blinkit and the fact that more people are ordering food online. The company grew a lot between FY24 and FY25. People will keep wanting to order food and groceries online especially in cities. However, I also think that the growth rate will slow down a bit as the company gets bigger and the market gets more competitive. I was surprised by this because it is hard for big companies to keep growing but Zomato still seems to have a lot of room to expand.

Overall, I think Zomato is a growing company. It operates in industries that have a lot of potential for growth like commerce, which is getting very popular in India. However, the biggest risk to my prediction is that other companies, like Swiggy might try to compete with Zomato by offering discounts and spending money which could effect the Zomato’s profits. Another risk is that expanding Blinkit might cost money than expected. On the hand if Zomato can improve its operations and keep its customers it might make more money than I predict. If people start spending money or if there are changes in regulations it could also hurt Zomato’s growth. My opinion is that Zomato is a company with a lot of potential for growth. It still has some risks that it needs to manage.

One thing I am not sure about is how quickly Blinkit will grow in the term. Quick commerce is still an industry in India and it is hard to predict if people will keep wanting to use it and if it will be profitable. This is important because Blinkit is a part of Zomato’s plans, for growth.

Ishaan Dalwani- financial model.xlsx - Financial Model (1) - Ishaan.pdf

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