Street willing to bet purely on Zomato's topline growth after Q1 results

In Q1FY22, losses also expanded due to non-cash ESOP expenses, which will continue going forward

The bullish share price movement in Zomato indicates investors are willing to bet purely on topline growth. The food delivery service went public with an over-subscribed IPO in July 2021 and listed at a premium of 50 per cent to its IPO price of Rs 76 per share.

The latest results indicate revenues are growing but so are losses. In Q1FY22, there was consolidated net loss of Rs 356 crore, versus a loss of Rs 99.8 crore a year ago and a loss of Rs 153 crore in Q4FY21. Revenues rose to Rs 844 crore as compared to Rs 266