Zomato's Stellar Q3: Blinkit Shines Bright, Driving Bullish Sentiments Across the Market

Zomato has truly captured the market's attention with its impressive third-quarter results for the fiscal year 2024. It’s not just about hitting targets; it’s about a company demonstrating serious momentum, delivering profitability that’s turning heads, and showcasing strategic success that has analysts brimming with confidence.

The standout performer, without a shadow of a doubt, is Blinkit. For the very first time, Zomato's quick commerce arm has achieved adjusted EBITDA positivity, a monumental milestone that arrived ahead of schedule. This isn't just a win for Blinkit; it's a testament to the viability and scaling potential of the quick commerce model, which many had doubted. Blinkit’s revenue practically doubled year-over-year, soaring to Rs 644 crore, proving that consumers are truly embracing the convenience of rapid deliveries.

But the good news doesn't stop there. Zomato's core food delivery business also put in a stellar performance, with Gross Order Value (GOV) climbing a healthy 27% year-on-year. And let's not forget Hyperpure, the company's B2B supplies segment, which mirrored Blinkit's growth with a phenomenal 100% year-on-year revenue increase. All these factors combined saw Zomato’s total revenue from operations jump by an impressive 69% year-on-year to Rs 3,283 crore. It's clear that the company is firing on all cylinders, showcasing strong execution across its diverse portfolio.

Naturally, such a powerful performance has sent ripples of optimism through the brokerage community. Major financial institutions like Jefferies, Citi, Kotak Institutional Equities, Nuvama, and Goldman Sachs have all reaffirmed their 'Buy' ratings, with many hiking their price targets significantly – some even eyeing Rs 190. The consensus is that Zomato is not just growing; it's growing profitably and efficiently, leveraging operating synergies and a massive user base. Analysts are particularly impressed by the acceleration in GOV growth and the early profitability of Blinkit, which they see as a harbinger of even better times ahead.

What this all boils down to is a very bullish outlook for Zomato. The company isn't just surviving in a competitive market; it's thriving, innovating, and proving that its multi-pronged strategy is paying off handsomely. Investors and market watchers alike will be keenly observing its journey, especially now that Blinkit has shed its 'loss-making' tag and emerged as a key profit driver. It’s an exciting time for Zomato, signaling a robust path forward in India's dynamic digital economy.