Zomato Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a good week for Zomato Limited (NSE:ZOMATO) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.9% to ₹149. Revenues were ₹33b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹0.16, an impressive 34% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Zomato

After the latest results, the 26 analysts covering Zomato are now predicting revenues of ₹161.4b in 2025. If met, this would reflect a major 52% improvement in revenue compared to the last 12 months. Zomato is also expected to turn profitable, with statutory earnings of ₹1.53 per share. Before this earnings report, the analysts had been forecasting revenues of ₹157.9b and earnings per share (EPS) of ₹1.42 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 12% to ₹152per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Zomato at ₹205 per share, while the most bearish prices it at ₹76.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zomato's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Zomato'shistorical trends, as the 40% annualised revenue growth to the end of 2025 is roughly in line with the 38% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 17% per year. So it's pretty clear that Zomato is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Zomato following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Zomato analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Zomato .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.