Zomato Share Price Slips 4% Amid Year-on-Year Profit Decline – InvestingCube

Zomato is a food tech company in India. Through its app or website, you can discover restaurants, order food, and delivered. Eternal is the parent company that owns Zomato for food delivery service, and also other businesses like the quick-commerce company Blinkit. The company rebranded itself as Eternal in March, from Zomato.

By the end of last week, Zomato announced its Q2 earnings. Below are the key points according to its Q2 earnings performance:

• Zomato’s net profit declined by 63% year-on-year to 65 crore rupees in the second quarter of the fiscal year 2026, as against 176 crore rupees.
• Zomato’s revenue rose 183.1 percent, which means it tripled YoY to 13,590 crore. It rose from 4,799 crore.
• The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) declined 32% YoY to 224 crore rupees. However, in the 1st quarter of the fiscal year of 2026, it increased 30% from 172 crore rupees.

Despite revenue increasing, the net profit declines due to increased costs. Heavy spending on marketing, delivery, and store expansion led to dilution in margins.

Zomato’s share price is expected to be in focus on Monday, October 20, especially due to its disclosure that the Uttar Pradesh tax authorities demand (GST) goods and services tax. Not only that, but it also faces interest and penalties amounting to over 128 crore rupees.

Eternal (Zomato) Share Price Expectations:

• The company announced that its net order value is stronger than expected for the second quarter of the fiscal year of 2026 for Blinkit.
• Zomato said that” we’ve updated our estimates and raised our target price from 431 rupees to 450 rupees. We continue to strongly recommend an Outperform rating.

Despite the GST and penalties imposed on Zomato shares, along with a net profit decline. The company is still optimistic about its share price. Moreover, Zomato plans to appeal against the order before the appropriate authority, as it believes that it has a strong case.

With these announcements, it’s expected that investors will be cautious in trading Zomato’s shares until the picture becomes clearer.

Zomato Share Price Overview:

Eternal (Zomato) share price opens today at 339.00, while its previous close was 342.65. At the time of writing, the shares are trading around 338.85. Zomato’s share price is under pressure at the resistance level of 345.18. At this level, the share can not break out and loses its bullish momentum.

The Technical Outlook For Zomato Share Price:

From the technical perspective, the Zomato share price is under pressure at the resistance level of 345.05 according to the Bollinger Bands. Since October 17, the price has attempted to break through this level multiple times but has failed.

As long as we are below the 345.00 level, a clear 1-hour close below 336.00 could pave the way to reach 330.69, the Bollinger bands’ support. However, the RSI is at the 39.28 level, which indicates that the share is oversold and the bearish momentum will end soon, with a potential bullish trend to start once again.

If sellers lose their momentum, the price can retest the 345.00 level. A clear 4-hour close above this level could pave the way to reach the 352.00 level and then the 359.00 level. Breaking out the bolling bands’ resistance at 359.51 could open the door to get the high of 16 October at 368.25.

What is the new name of the Zomato share?

Eternal Limited was formerly called Zomato, and the company decided to rebrand itself as Eternal Limited. It is an indian technology company based in Gurgaon. Eternal is the parent company of the food delivery platform Zomato, quick commerce company Blinkit, food supply business Hyperpure, and events and ticketing platform District.

Is Zomato making a Profit?

Zomato continued to be profitable, its revenue tripled YoY to 13,590 crore. It rose from 4,799 crore. This increase amounted to 183 percent. In Q2 of the fiscal year of 2026, the company reported that the net profit is 65 crore rupees; however, it’s a 63% drop year-on-year, but the company is making a profit. The profitability is under pressure due to sharply rising costs from its fast-commerce business, Blinkit.