Zomato Limited Just Missed Earnings - But Analysts Have Updated Their Models

It's been a sad week for Zomato Limited (NSE:ZOMATO), who've watched their investment drop 11% to ₹216 in the week since the company reported its quarterly result. Statutory earnings per share fell badly short of expectations, coming in at ₹0.06, some 79% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹54b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Zomato

After the latest results, the 26 analysts covering Zomato are now predicting revenues of ₹301.7b in 2026. If met, this would reflect a major 68% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 150% to ₹1.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹283.3b and earnings per share (EPS) of ₹2.55 in 2026. So it's pretty clear the analysts have mixed opinions on Zomato after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.

The consensus price target was unchanged at ₹291, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Zomato at ₹400 per share, while the most bearish prices it at ₹130. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 51% growth on an annualised basis. That is in line with its 45% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 20% annually. So although Zomato is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zomato. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. At Simply Wall St, we have a full range of analyst estimates for Zomato going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Zomato that you need to be mindful of.

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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.