All I want to ask you – while the results mixed – if you ignore ad and marketing costs weighed in the inner line, more powerful. That’s my analysis for Elara. Do you agree, especially considering that you repeat your loud bumps and raises the target price for stock?
Karan Taurani: ZomatoSA performance is consistently consistent in terms of numbers. There is a gentle beating of easy commercial business, while eating mostly in accordance with expectations. The usefulness of the part of food is slightly under our estimates. Losses of easy commercial remain firm on a Qoq basis, which is a great positive.
Within the past 3-4 quarts, we see increased losses of easy trading because of prices of wars, raised competition force, and marketing investment. So, apparently the worst is behind our results in income and loss. From a medium- up to long time, we look forward to the Breakeven point to return for blinkit – something we see about four quarteres.
Overall, it is a great set of results. Implementing quick commercial compared, especially in income, strong. Despite the rise of competition, they have made the maintenance of market part. Interestingly, focusing on food business recurring growth. In the past, the emphasis on the gain of growth, but to guide today suggests more than 20% growth on food from FY27, trust in prospects has grown. This is a marked improvement from 15-16% Growth Growdown in 2-3 quarters has passed.
So, three key takeaways are easing to grow food business, the easy commercial deprivation that moves out and margin progress from a 3p of a QC inventory model.
Let’s shine now every part. Starting Zomato – Because Gov is consistent with ~ 16.25% for many quarters – where do you see the acceleration from, and what are you entering for gov growth on this feature?
Karan Taurani: For FY26, we expect Gov growth to be facilitated. Q1 is usually a seasonally weak quarter, but we still expect to come to grow up about 17-18%. For FY27 and ahead, we mainly progress to 22% Gov, according to the management guide of 20%.
This growth will be released to an expanding customer base. The strongest reduction, and the two zomato and Swangy Now focuses on frequency driving through loyalty programs. In addition, study is to transmit the expansion of new market and fold in business delivery business. For example, deliveries within 10 minutes and new suggestions such as PLI Forr Forord played.
So, with change, market expand, and deeper customer piercing, we look forward to the strong growth for the medium shipping business for a long time.
Go to blinkit – this is a strong manifestation, especially considering their powerful progress in the Dark Store. However, losses to ebits are healing. Help us understand your plotting and what the blitkit is doing.
Karan Taurani: We look forward to about 120% yoy growth for blinkit this year, mostly driven by the store expand. Unlike Zomato’s food business, where growth comes from a mix of AOV and frequency, blinkit’s growth was first driven by adding new users and adding transactions. About 90-95% blinkit growth is dedicated to new customer extraction.
AOV and frequency remains more flat, but the blinkit is to stimulate peers due to strong moat – consisting of three elements: Customer shipping time, and best class shipping class. It also has a stronghold in the northern markets where competitors do not avoid offering blinkit.
They maintain their target 2,000 stores in December and raise long guides in 3,000 stores in the next two years – showing strong business confidence.
Amends, blinkit gets traction in metro markets – a space first looked out of concern for concerns about need and gain. Now, they see clear momentum there too. Although AOV is 10-15% under non-meters, scaling is taking place, and business is in the right direction in terms of growth and income.
Because stock stays in a wide range of a time, have you changed your target price?
Karan Taurani: Yes, we have changed our target from ₹ 300 to ₹ 340, and it is based on three reasons: the improved prospects of growing food progress.
Continue growth in QC business, especially flown to additional shop additions and momentum to metro markets. QC profit enhancement, which leads to modify the amounts of value increasing.
Up to 6-8 months ago, the quick commerce space faced the appreciation pressure due to new entrants like Amazon, Flipkartand aggressive price from Zepto. That stage of the extreme competition today as well as behind us. As a result, we expect a valuation rate for the QC part, which will support the overall performance of the stock. Based on these reasons, we have raised our target price at ₹ 340 for Elara.
A final question about income. In the last income call, handling clearly states that growth will precede income first. Playing in this quarter, with profit coming to ₹ 25 crore. Where do you see the next profit next – especially for general business?
Karan Taurani: From a combined business view, profit’s view has improved in parts. In business business, management guides for ~ $ 3 billion gov and $ 150 million in positive ebitda in the next 3-5 years.
There may be near concerns on the bistro part because of losses, but generally, the profit is not currently focus – especially in easy commercial. Now, it’s all about claiming and going on the market share.
That is said, QC has a strong benefit of good business – including the potential for higher extraction rates, the better income in the event of the scale. While we look forward to Breakeven and gentle profits near the medium term, the higher margins for QC actually exceed the parts of food delivery.
So yes, we are confident that profitable safety in the next 5-7 years is mainly driven by QC business.
