Zomato Share Price: Zomato shares fell 5% to ₹264.85 per share on the NSE after global brokerage firm Jefferies raised concerns over rising competition in the quick commerce space.
After Zomato’s shares more than doubled in value in 2024, analysts at Jefferies forecast that 2025 could be a breather year, with the stock possibly shifting gears into a price consolidation phase.
According to news reports, the brokerage said aggressive strategies by existing players and entry of new competitors could lead to higher discounts, which could pose risks to Zomato’s medium-term profitability.
The brokerage said that apart from Zomato’s Blinkit, competitors such as Swiggy’s Instamart, Zepto, Amazon and others are actively competing for quick commerce market share, reports Moneycontrol. The report said Jefferies has drastically cut Blinkit’s EBITDA forecast for FY26-27 and halved its target for Blinkit to 6x. “Overall for Zomato, the brokerage has cut its EBITDA estimates by 12 percent for FY26 and 15 percent for FY25, along with cutting profitability estimates by 17 percent for FY26 and 18 percent for FY27.
Earnings per share (EPS) estimates have also been cut by 20 percent for FY26 and 21 percent for FY27,” reports Moneycontrol. In the last 12 months, Zomato shares have rallied 91 percent. Zomato’s rival Swiggy was also trading in the red. Swiggy shares fell 1.77% to trade at ₹522.70.
According to the report, the quick commerce sector is expected to witness massive growth, with some estimates putting the Indian market at US$5 billion by 2025 and US$9.94 billion by 2029.
The main factors driving the growth include changing consumer preferences, increasing adoption of e-commerce, and demand for convenience among millennials and Gen Z.
India’s quick commerce market is witnessing fierce competition among some of the key players: Zepto, Zomato’s Blinkit, and Swiggy’s Instamart.
According to a report by India Briefing, “Zepto took the lead with nearly 11 million app downloads on Google Play and Apple’s App Store. Swiggy’s apps, which also include Instamart, got 9.8 million downloads, while Blinkit got about 6.6 million downloads. Tata’s BigBasket e-commerce offering, which offers BB Now within its main app, registered about 3.5 million downloads, and Dunzo got less than a million downloads.”
Zomato shares decrease 5%, analysts raise concerns over rising competition; Swiggy also slips nearly 2%
