Zomato’s Q1 show drives stock 9% higher; analysts remain divided on outlook

In its first-ever quarterly results as a listed entity, food service provider Zomato put up a mixed show. While the company’s loss swelled by over three times to Rs 356 crore in the June quarter (Q1), investors focussed on the better-than-expected revenue performance, driving the stock nearly 9 per cent higher to Rs 135.80 per share on BSE on Wednesday. However, the stock was still trading below the listing day’s high of Rs 147.80 touched on July 27, 2021, but was up 51 per cent over the issue price of Rs 90 per share.

The company’s revenue from operations in Q1 rose to Rs 844.40 crore, from Rs 266 crore a year ago, on the back of Zomato’s core food delivery business, which continued to grow despite the severe Covid wave that started in April.