Zomato shares drop 5% after BofA downgrades stock to ‘neutral,’ cuts target price to Rs 250.

Zomato shares faced pressure in today’s trade, dropping 5% to an intraday low of Rs 199.90 on the BSE after global brokerage BofA Securities downgraded the stock and cut its price target, citing profitability concerns in the quick commerce and food delivery segments.

According to a report by CNBC-TV18, which cited BofA’s latest note, the brokerage downgraded Zomato to "neutral" from its previous "buy" rating and reduced the price target to Rs 250 from Rs 300.

The sell-off in Zomato shares was driven by BofA's cautious outlook, which highlighted rising losses in quick commerce and slower food delivery growth as key risks to future earnings. BofA forecasts Zomato’s EBITDA for FY26 and FY27 to be 20% to 50% below street expectations, raising concerns about the company’s medium-term financial performance.


While the food delivery segment has yet to experience a significant slowdown, cash flow concerns are emerging, according to the note. In the quick commerce space, BofA expects prolonged competition and mounting losses to pressure margins and delay profitability timelines.

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The bearish sentiment extended to Swiggy, which also faced a double downgrade from "buy" to "underperform," along with a sharp price target cut from Rs 420 to Rs 325—below its IPO price of Rs 390.

Swiggy shares tumbled 3.2% to an intraday low of Rs 326.60 on the BSE today.

Notably, Swiggy's stock is now trading below its issue price and near BofA’s revised target.

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