Zomato gets GST notice of ₹803 crore; here’s how stock reacted

Shares of Zomato were trading flat on Friday after Deepinder Goyal-led online food delivery company received a tax demand of ₹803 crore from the Goods and Services Tax (GST) department in Thane (Maharashtra). This includes a tax demand of ₹401.7 crore, and a penalty and interest component of a similar amount for the period October 29, 2019 to March 31, 2022.

The tax notice has been issued in respect of non- payment of GST on delivery charges with interest and penalty, as per the exchange filing.

“The company has received an order on 12 December 2024 which is dated 12 November 2024 for the period 29 October 2019 to 31 March 2022 passed by Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra confirming demand of GST of ₹401.70 crore with interest as applicable and penalty of ₹401.70 crore,” Zomato said in a BSE filing post market hours on Thursday.

The foodtech company said that it will file an appeal against the order before the appropriate authority. “We believe that we have a strong case on merits which is backed by opinions from our external legal and tax advisors,” it said.

Reacting to the news, shares of Zomato were trading on a flat note today, swinging between gains and losses. The stock touched a high and low of ₹287.20 and ₹277.90, respectively in the first two hours of trade so far, against the previous closing price of ₹284.90 on the BSE.

At the time of reporting, Zomato shares were up 0.37% at ₹285.95, with a market capitalisation of ₹2.75 lakh crore. The foodtech heavyweight touched its 52-week high of ₹304.50 on December 5, 2024, rebounding 150% from its 52-week low of ₹120.25 hit on December 21, 2023. The largecap stock has given consistent return to its shareholders in the last one year. The counter has risen 138% in 12 months; 54% in six month; 129% in the calendar year 2025; and 10.5% in the last one month.

On the back of sustained rally in its share price, Zomato is set to be included in the Sensex pack, effective from December 23. The company will replace JSW Steel in the 30-stock benchmark index as part of the latest reconstitution announced by Asia Index Private Ltd, a subsidiary of BSE.

Going ahead, Zomato is also expected to be included in the Nifty 50 benchmark index, domestic brokerage JM Financial said in a recent report. The report noted that inclusion of Zomato in the Nifty50 index would potentially lead to fund inflows of $607 million.

Last month, Zomato raised ₹8,500 crore via qualified institutional placements (QIP) amid intensifying competition in the quick commerce space, with Swiggy recently raising ₹11,300 crore through initial public offering (IPO) route, and Zepto securing over $1.3 billion in fresh funding. The company allotted 33.65 crore shares to eligible qualified institutional buyers at an issue price of ₹252.62 apiece.

The fundraise, the first major since its listing on the stock exchanges in July 2021, is intended to be used to strengthen the balance sheet and support the expansion of its quick commerce arm Blinkit.

For the second quarter ended September 30, 2024, Zomato reported multifold growth in its consolidated net profit to ₹176 crore, compared to ₹36 crore in the year ago period. The revenue from operation surged 68% year-on-year (YoY) to ₹4,799 crore, driven by improvement in margins in the food delivery business and expansion of its quick-commerce business. On the operating front, EBITDA stood at ₹230 crore, while the margin was at 4.7%, up 50 basis points quarter-on-quarter (QoQ).

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