Zomato is no stranger to headlines—whether it’s about rapid expansions, innovative ideas, or its share performance on the stock market. Lately, however, zomato share price has been in the limelight for its downward turn. The company’s stock has dropped for five consecutive sessions, recording an 11.23% tumble over this short period.
On Tuesday, it slipped an additional 5%, briefly touching an intraday low of ₹200 on the National Stock Exchange. The question on everyone’s mind is whether the Zomato share news portends deeper trouble or a golden chance to buy the dip.
In this blog, we’ll explore the slump in zomato share price, the broader market context, and the highlights from the food tech giant’s Q3 FY25 performance.
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The market sentiment and how it affects Zomato
The Indian stock market took a hit on 11 March 2025. At one point, the BSE Sensex dropped to 73,668 before regaining some ground to close around 73,927.15, a net fall of 188 points (0.25%). Meanwhile, the NSE Nifty 50 actually rose by 33 points (0.15%) to 22,426.65. While the overall picture was mixed, zomato share price trended downward, reflecting weak sentiments toward tech-related and growth stocks.
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What led to Zomato’s slump?
In a move that might initially raise eyebrows, Zomato’s shareholders approved a resolution to rename the company’s core entity as Eternal Ltd. As per the stock exchange filing, this change only affects the corporate structure and does not alter Zomato’s consumer-facing brand or app. The Memorandum of Association (MoA) and Articles of Association (AoA) will also be amended to reflect the new name.
Though interesting, this rebranding isn’t likely to have caused the sudden 11.23% drop in Zomato’s share price. For the brand loyalists, Zomato remains Zomato in everyday life. But to the market, this move signals a possible strategic shift beyond food delivery—something that might or might not translate into earnings gains in the future.
Q3 FY25 highlights
Alongside the name change, the company’s Q3 FY25 results created waves. While the top line soared, the bottom line did not fare as well:
Below is a quick snapshot of Zomato share analysis based on Q3 FY25 data:
| Metric | Q3 FY25 | Q3 FY24 | Change |
| Net profit (₹) | 59 crore | 138 crore | -57% |
| Sequential profit (vs Q2FY25) | 59 crore | 176 crore | -66.5% |
| Revenue from operations (₹) | 5,405 crore | 3,288 crore | +64.9% |
| Sequential revenue (vs Q2FY25) | 5,405 crore | 4,799 crore | +12.6% |
The main reason behind the profit dip lies in higher operational costs, particularly tied to the expansion of Blinkit, a quick commerce platform. Even so, the impressive revenue growth hints that Zomato’s core model and user demand remain strong.
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Factors behind – can this be a bargain?
1. Short-term sell-off
It’s not unusual for investors to react strongly to short-term news, especially when profits sink. The Zomato share price losing 11.23% in five sessions may reflect concerns about immediate profitability rather than the company’s long-term trajectory.
2. Broader market weakness
The broader market has seen volatility, with the Sensex plunging and then partly recovering. Such swings can exacerbate losses in growth-focused stocks. When overall sentiment turns jittery, even fundamentally sound companies can face temporary dips.
3. Strategic shifts (rebranding + expansions)
There’s no guarantee that expansions like Blinkit will pay off. However, if it succeeds, the revenue surge could overshadow short-term losses. Zomato’s rebranding to Eternal Ltd might also be part of a bigger plan, diversifying the company’s scope beyond food tech.
Is now a good time to buy?
When a stock plummets significantly over a few sessions, some opportunistic investors sense a dip-buying chance. For instance, if you believe that Zomato’s expansion into quick commerce will eventually pay dividends—and that short-term profit hits are a natural part of scaling—then this slump could be a strategic entry point.
On the other hand, if you feel the rising competition in food delivery, combined with uncertain market conditions, might stall Zomato’s growth, it may be wise to stay cautious. Reading zomato share analysis thoroughly can help you determine if the current price is attractive enough relative to the risks involved.
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Final thought
In the end, whether you see Zomato’s share price at ₹200 as a bargain or a warning sign depends on your investment perspective. The 11.23% drop over five sessions is significant, but it hasn’t erased the company’s core value proposition. Zomato’s Q3 FY25 results highlight a substantial revenue increase, albeit with a shrinking profit due to expansion costs.
This tension between immediate profitability and future growth is central to Zomato share analysis. Regardless, always weigh the risks against your financial goals. Keep an eye on both Zomato share news and broader market shifts to stay informed.
