Zomato stock surged by 10 percent, reaching a record high of Rs 261 on August 2, following the company's robust Q1 results.

The food aggregator firm posted significant earnings for the quarter ending June 2024, with all segments demonstrating healthy growth.

Zomato reported a substantial rise in net profit to Rs 253 crore in Q1FY25, marking a 12,550 percent year-on-year increase.

Revenue from operations also saw a notable increase, surging 75 percent year-on-year to Rs 4,206 crore.

The company's food delivery business remained stable, while Blinkit presented a generational opportunity in disrupting industries like retail, grocery, and e-commerce.

During the quarter, Zomato's EBITDA was Rs 177 crore, compared to an EBITDA loss of Rs 48 crore in the same period the previous year.

The margins for Q1FY25 stood at 4.21 percent. The Gross Order Value (GOV) of the B2C business grew 53 percent year-on-year to Rs 15,455 crore.

Brokerages have expressed a positive outlook on Zomato, raising their target prices.

Another initiated coverage with a 'buy' rating and the company’s potential to strengthen its presence in the food delivery market through technology adoption and innovation.

Zomato's food delivery GOV growth remained strong at 27 percent year-on-year, while Blinkit continued its growth trajectory with a 130 percent year-on-year increase in GOV to Rs 4,920 crore.

Management expects food delivery GOV growth to sustain at over 20 percent in the near term, although slightly lower than recent quarters.

Blinkit's impressive growth is further bolstered by continued profitability improvements, maintaining adjusted EBITDA breakeven while investing in new stores.

The management aims to expand Blinkit's store count to 2,000 by 2026, seizing market opportunities.

Zomato also announced plans to develop a one-stop destination app called District, anticipated to become its third-largest B2C business.

Analysts have revised their FY25-27 EPS estimates, factoring in Q1 performance and Blinkit's aggressive expansion plans. The stock remains a 'buy', with a raised target price of Rs 270 per share.

By 10:31 am, Zomato shares were trading over 9 percent higher at Rs 256 on the NSE.

Year-to-date, the stock has surged 105 percent, more than doubling investors' returns. In contrast, the benchmark Nifty 50 index rose by 14 percent during the same period.