Whalesbook
Zomato Stock Jumps on Blinkit Growth
Zomato's stock surged more than 4% to an intraday high of ₹265.25 on April 29, 2026. This follows strong financial results for Q4 FY26, driven by its quick commerce business, Blinkit.
Blinkit Powers Profit Surge
Zomato's net profit soared 346% year-on-year to ₹174 crore in the March quarter. Blinkit was the main driver, reporting an impressive 95.4% growth in Net Order Value (NOV). Blinkit expanded its footprint significantly, adding 216 net new stores in the quarter to reach 2,243. Zomato's core food delivery business also performed well, with NOV growth of 19% and stable Adjusted EBITDA margins of 5.5%. Total revenue rose 196% year-on-year to ₹17,292 crore.
Analysts Positive Despite Competition
India's quick commerce market is booming, projected to grow over 40% annually until 2030. Zomato, through Blinkit, is well-positioned to capture this growth. Brokerages largely rate Zomato positively, with multiple 'Buy' ratings. Firms like Nirmal Bang Institutional Equities, MOFSL, and Nuvama Institutional Equities have set price targets between ₹334 and ₹380, suggesting potential upside of up to 34%.
Profitability Hurdles in Quick Commerce
Quick commerce operations face significant profitability challenges. Zomato's 2022 acquisition of Blinkit, initially met with market doubt, highlighted the risks of capital-intensive growth. While Blinkit is now Zomato's fastest-growing segment, its unit economics are still under refinement. Intense competition from rivals like Swiggy's Instamart, with aggressive discounts and rapid dark store expansion, continually pressures margins.
Future Growth and Profitability Goals
Zomato aims for over 60% annual growth in Net Order Value (NOV) and targets margins around 5%. The company has set a goal of achieving $1 billion in adjusted EBITDA by FY29, which requires disciplined execution and a continued focus on profitability, particularly within the quick commerce sector. Analysts see the market as a major opportunity to transform delivery, with improving unit economics expected to pave the way forward.