Blinkit Is Booming! Here’s Why Zomato’s Share Price Target Just Got A Big Upgrade

Brokerage firm Emkay Global Financial Services has reiterated a ‘BUY’ rating on Zomato (listed under 'Eternal'), raising its target price to Rs 330 from Rs 290, following the company's strong Q1FY26 performance and robust growth in its quick commerce arm, Blinkit.

“Eternal registered strong 1Q results, with Blinkit reporting 140% YoY GOV growth and 50bps QoQ improvement in adj EBITDA margin,” the report stated.
Blinkit Steals the Show: GOV Jumps 140% YoY

According to Emkay, Blinkit outpaced Zomato’s core food delivery business in Q1FY26 for the first time ever, with a Gross Order Value (GOV) of ₹118 billion, compared to food delivery’s $108 billion. The quick commerce (QCom) vertical is now seen as the company’s major growth engine.

Management attributed this rise to strong momentum across geographies, including cities where Zomato already has robust coverage. “We believe QCom has a long growth runway, in tier-2 cities too; this gives visibility to the management to expand to 3,000 stores,” Emkay highlighted. The current store count stands at 1,544.

Shift to Inventory-Led Model to Drive Margins
A significant transformation is underway as Zomato plans to shift Blinkit from a marketplace to an inventory ownership model in the next 2–3 quarters. This strategic pivot, now possible after Eternal’s classification as an Indian Owned-and-Controlled Company (IOCC), is expected to lead to ~100bps margin expansion.

“As Eternal has become an Indian Owned-and-Controlled-Company (IOCC), it will make a transition in its QCom business… This will result in QCom revenue converging with the NOV,” Emkay noted.

This move will require a net working capital (NWC) of ~18 days, but also brings greater control over inventory, stronger brand partnerships, and long-term profitability.

Food Delivery Still a Cash Cow
While Blinkit leads growth, Zomato’s food delivery segment remains profitable, with 16% YoY GOV growth and a 44% rise in adjusted EBITDA to ₹4.51 billion. The segment has already achieved 5.0% EBITDA margin, and is expected to grow 15–20% in FY26, as per management commentary.

To keep innovation flowing, Zomato has introduced Rotational Leadership by appointing Aditya Mangla as the CEO of the food delivery business for a fixed two-year term.

Going-Out Business and Long-Term Outlook
Zomato’s “District” business (its going-out segment) is also growing at 30%+, boasting an average Monthly Transacting User (MTU) base of ~2 million. Though still at a nascent stage, the unit economics are strong.

Despite Blinkit being in what Emkay calls the ‘landgrab’ phase, where break-even is not immediate, its execution in quick commerce has been excellent, offering significant long-term value.
 

“We believe EBITDA breakeven for Blinkit is still some time away. Food delivery is likely to remain a cash cow… and we expect the business to see 20%+ EBITDA CAGR over the long term,” the brokerage added.

With strong fundamentals across its verticals and a bold shift in Blinkit’s operating model, Zomato looks poised for sustained growth. Emkay’s upward revision of the Zomato share price target to Rs 330 underlines investor confidence in the company’s long-term strategy.

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