Zomato aims for $1 billion in adjusted EBITDA by FY29, driven by quick commerce expansion and core food delivery growth. Investors are tracking the company’s ambitious dark store rollout and its new ‘District’ platform. The company recently reported a sharp rise in Q4 FY26 net profit, reflecting improved operational efficiency across its key business segments.
Zomato has outlined a major long-term financial roadmap, targeting $1 billion in adjusted EBITDA by FY29. The plan relies on scaling multiple business pillars, with the quick commerce arm, Blinkit, and the core food delivery service expected to be the primary contributors. According to recent brokerage commentary, the company is aiming for roughly $500 million from quick commerce and $425 million from food delivery, with the remainder coming from newer initiatives like District and its B2B supplies business, Hyperpure.
Growth Engines and Strategic Expansion
The company’s food delivery segment has shown steady recovery, supported by its Gold membership program and a focus on affordable meal options. Market analysts expect the food delivery sector, which is largely a duopoly, to grow at a steady pace of 18-20% in the medium term. Meanwhile, Blinkit remains a central focus for growth. Despite facing stiff competition in the quick commerce space, Blinkit has reached an adjusted EBITDA breakeven point. The company plans to scale its network of dark stores to 3,000 locations by March 2027 to maintain its market share.
Beyond food and quick commerce, Zomato is betting on its new ‘District’ platform, which aims to capture a share of India’s growing live events and entertainment market. With the Indian live events industry estimated to be worth over Rs 20,000 crore, the company expects District to emerge as a meaningful contributor to its bottom line by FY30. However, the success of these new ventures depends on effective execution in a highly competitive market where rivals are also spending heavily to acquire and retain customers.
Financial Performance and Investor Monitorables
Financially, Zomato has shown significant improvement. In the fourth quarter of FY26, the company recorded a net profit of Rs 174 crore, a substantial increase compared to Rs 39 crore in the same period a year earlier. Annual revenue for FY26 also saw a sharp jump to Rs 17,292 crore. While these numbers highlight a shift toward profitability, investors should note that the company’s valuation is often tied to its high-growth expectations. The stock’s future performance will likely depend on the company's ability to balance aggressive expansion with sustained profit margins.
Investors may track several key areas in the coming quarters. These include the actual pace of dark store additions for Blinkit, the adoption rate of the District platform, and the company's ability to maintain food delivery margins amid ongoing competitive pressures. Additionally, any changes in operational costs or regulatory developments in the gig-economy sector will remain important to watch, as these factors could influence the company’s ability to meet its long-term profitability goals.