Shares of Zomato were muted on Monday, a day ahead of its second-quarter results.

What Happened: Motilal Oswal sees continued growth for Zomato with a 68% year-on-year rise in its revenue to ₹4,786 crore and estimates net profit will quadruple.

Overall, sequential growth is expected to remain robust and margins are likely to remain flat in the second quarter of FY25, the brokerage said. It expects the company’s quick commerce vertical Blinkit to continue its growth momentum in the quarter and its Hyperpure business to maintain its upward trajectory.

Motilal Oswal suggests investors should keep an eye on the management’s outlook on growth and margins as well as on any announcements related to Blinkit.

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Axis Securities estimates a 33.4% rise in the food delivery giant’s revenue to ₹4,384 crore, backed by strong volume growth. It expects net to come in at around ₹265 crore. Operating margins are likely to expand because of strong volume, the brokerage said.

It reiterated that the management’s outlook on its food delivery and quick commerce businesses will be much awaited.

Kotak Securities expects Zomato to report healthy Q2FY25 performance, driven by 23% growth in food delivery gross merchandise value (GMV) to around ₹9,800 crore and 114% growth in Blinkit gross merchandise value.

It expects both businesses to report sequential improvement in their contribution margins (CMs), driven by a better take rate and advertising income.

The benefits of operating leverage in food delivery will become evident, but significant store additions in Blinkit may keep its EBITDA performance similar to the first quarter, Kotak added.

Price Action: Zomato was trading flat at ₹257.25 on Monday morning.

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