Zomato reports strong growth and targets INR 300 amid strategic expansion

Zomato received a "BUY" rating from ICICI Securities with a target price of INR 300.

In Q2FY25, Zomato experienced a 20% year-on-year growth in gross order value (GOV) for food delivery.

However, the gross take rate slightly declined by 20 basis points quarter-on-quarter due to an increase in 'zero delivery fee' orders.

The net take rate remained stable at 21.5% with a 5.8% quarter-on-quarter expansion in its restaurant base.

In the quick commerce segment, Zomato added 152 stores in Q2FY25, in line with its full-year guidance.

The average order value (AOV) increased to INR 660, reflecting a 5.6% quarter-on-quarter rise due to seasonal factors and an expanded product assortment.

The gross take rate in this segment decreased by approximately 30 basis points due to the addition of new stores.

Zomato's board has also approved a fund raise of up to USD 1 billion to strengthen its balance sheet.

Zomato remains a top choice in the Indian internet sector.

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