With Paytm turning an operating profit in the third quarter, all eyes are now on Zomato’s October-December 2022 quarterly results to see if the new-age tech company can follow in the footsteps of its peers. According to brokerages, the food delivery platform’s operating income is expected to grow 68% year-on-year, but losses are likely to widen.

The stock was quoted at Rs 56.10 per share on the National Stock Exchange, up 3.3% at 10:15 am. Much optimism comes from foreign brokerage CLSA’s “buy” rating on the stock with a target price of Rs 70.

According to Kotak Institutional Equities, Zomato’s operating income likely rose 68% year-on-year and 12.6% quarter-on-quarter to Rs 1,871 crore on higher deliveries and gross merchandise value.

However, the net loss can double to Rs 500 crore from Rs 251 crore due to Blinkit’s integration costs. “Loss will widen sequentially due to Blinkit’s full quarterly consolidation (relative to the 50-day consolidation in Q2),” it noted.

The stock was hit hard last month after reports that the company would stop offering Zomato Instant, a 10-minute food delivery service. However, the company clarified that it would be “rebranding” Instant rather than discontinuing it.

The stock is down more than 7% so far in 2023. Since its listing in 2021, its market value has eroded by more than half.