Zomato (Eternal) – Q4 FY26 Results

key financial highlights

• Revenue from Operations:
  • Revenue (Q4 FY26): ₹17,292 Cr
    • QoQ Change: +6.0%
    • YoY Change: +196.5%
  • Previous Quarter (Q3 FY26): ₹16,315 Cr
  • Previous Year (Q4 FY25): ₹5,833 Cr
• Profit After Tax (PAT):
  • PAT (Q4 FY26): ₹174 Cr
    • QoQ Change: +70.6%
    • YoY Change: +346%
  • Previous Quarter (Q3 FY26): ₹102 Cr
  • Previous Year (Q4 FY25): ₹39 Cr
• Note: Quarterly profit is up YoY, but FY profit declined significantly
• QoQ Performance
  • Revenue Trend: Moderate growth
  • Profit Trend: Strong recovery

Margin Analysis

Key Drivers:

• Significant rise in delivery & logistics costs (₹2,607 Cr)
• High advertising & promotional expenses
• Increased employee and platform costs
• Heavy reinvestment in growth segments

Key Signal: Despite strong growth, profit margins remain thin, reflecting aggressive expansion strategy

Segment insight

Summary:

• Business driven by food delivery + quick commerce + platform expansion, where growth is prioritized over margins

Characteristics:

• High customer acquisition cost
• Platform-led scalability
• High operating leverage potential
• Continuous reinvestment phase

Earning quality check

Drivers:

• Strong operating cash flow: ₹632 Cr
• High non-cash adjustments (depreciation ₹1,291 Cr)
• Significant working capital movements
• Share-based payments impact

Interpretation:

• Earnings quality is moderate to strong, supported by positive cash flow but diluted by high reinvestment and non-cash expenses.

balance sheet Analysis

• Total Assets: ₹40,736 Cr
• Total Liabilities: ₹9,763 Cr

Insight:

• Strong equity base (~₹30,973 Cr)
• Low leverage structure
• High cash & investment reserves
• Strong liquidity position

key risks

• High competition in food delivery & quick commerce
• Sustained margin pressure due to discounting
• Rising logistics and operational costs
• Execution risk in new verticals

management strategy signals

Focus Area:

• Expansion in quick commerce
• Market share growth
• Cost optimization over time
• Platform monetization

Financial Metrics