Zomato Share Buyback Rumors July 2025: What Investors Should Know About the Potential ₹1,000 Cr Move

Zomato Share Buyback Rumors July 2025 have sparked fresh excitement in India’s stock market, triggering an 8% intraday rally in the company’s share price. As reports emerged that Zomato may announce a ₹800–1,000 crore share buyback, investors began speculating about what this could mean for the company’s financials, valuation, and future strategy.

This move, if confirmed, would mark a major shift in how Zomato allocates capital and rewards shareholders. For a company that has long been known for aggressive expansion and burning cash in scaling up, the Zomato Share Buyback Rumors July 2025 hint at a more mature, profitability-focused business outlook.

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Why Zomato Share Buyback Rumors July 2025 Are Significant

The Zomato Share Buyback Rumors July 2025 suggest that the company may be preparing to deploy its free cash in a way that directly benefits shareholders. Share buybacks reduce the total number of shares outstanding, which typically boosts earnings per share (EPS) and often leads to a rerating in valuation multiples.

For Zomato, which has seen its stock correct significantly from 2023 highs, the rumored buyback could act as a strong positive trigger. Investors have long awaited signs of capital discipline from the food delivery and quick-commerce player. If these Zomato Share Buyback Rumors July 2025 turn out to be true, the company could be signaling confidence in its long-term earnings trajectory.

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What Would a ₹1,000 Crore Buyback Mean?

Assuming Zomato does initiate a ₹1,000 crore buyback, it would be one of the largest buybacks in the Indian internet space. With an outstanding share count of around 2,050 crore, the buyback could lead to a reduction of approximately 5% in the total float.

This directly translates to a similar lift in EPS and could improve return ratios such as Return on Equity (ROE). The Zomato Share Buyback Rumors July 2025 are therefore being interpreted not only as a tactical move to boost stock sentiment, but also a long-term bet on the company’s ability to generate sustainable profits.

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Stock Market Response to Zomato Share Buyback Rumors July 2025

The stock’s sharp 8% rise on July 6, 2025, reflects the optimism surrounding the Zomato Share Buyback Rumors July 2025. Market participants have shown they are eager to reward companies that prioritize shareholder returns and capital efficiency.

Until now, Zomato had largely avoided buybacks or dividends, focusing instead on growth. But with cash reserves improving and operations stabilizing, especially in quick commerce (Blinkit) and B2B supplies (Hyperpure), the company seems to have more breathing room to explore buybacks.

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Analysts View on Zomato Share Buyback Rumors July 2025

Financial analysts tracking the stock are cautiously optimistic. They view the Zomato Share Buyback Rumors July 2025 as a sign that the company is aligning more closely with shareholder interests. Some believe that if the buyback materializes, it could act as a precedent for similar moves in the future—possibly even leading to dividend policies or special payouts.

Many fund managers say the market will reward Zomato if the company continues to show discipline with its capital while also maintaining growth. A ₹1,000 crore buyback could act as the first step toward a more predictable capital return framework.

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Valuation Re-Rating Possible

Zomato was once trading at a P/E multiple of 45x in 2023, which has now compressed to about 25x in mid-2025. The Zomato Share Buyback Rumors July 2025 suggest a move that could help narrow this gap.

A successful buyback would reduce share supply, boost earnings metrics, and possibly improve sentiment among institutional investors who were previously cautious about Zomato’s high burn rate. If EPS rises by even 5% post-buyback, Zomato’s stock could attract a higher valuation multiple, especially as its core businesses move toward profitability.

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Is Zomato Now a Mature Company?

One of the biggest takeaways from the Zomato Share Buyback Rumors July 2025 is the apparent transformation of Zomato into a more mature business. The company, once defined by its aggressive spending and loss-making quarters, is now showing signs of strong cash flow and improved capital allocation.

If the buyback is executed, it would be a strong signal that Zomato is shifting from growth-at-all-costs to sustainable returns and efficiency. This could also pave the way for institutional capital to return to the stock in a more meaningful way.

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Possible Scenarios for Zomato’s Share Buyback

Scenario 1: ₹1,000 Cr Buyback at Market Price
This would reduce shares by ~5%, giving a quick boost to EPS and stock performance.

Scenario 2: ₹800 Cr Buyback via Tender Offer
A tender offer at a premium could attract long-term investors looking to book partial profits.

Scenario 3: Open Market Buyback
A buyback through open market purchases may have a more gradual impact on price and sentiment, but still signals strong confidence.

Each scenario under the Zomato Share Buyback Rumors July 2025 will have a slightly different impact, but all suggest a renewed focus on creating shareholder value.

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Risks & Considerations

While the Zomato Share Buyback Rumors July 2025 are encouraging, they come with caveats. Buybacks only help if the underlying business continues to grow and deliver profits. If growth stalls or new investments underperform, the benefits of a buyback can quickly fade.

Also, investors must watch whether Zomato follows through with the buyback or if it remains a rumor. Until official confirmation comes from the company or board, it’s essential to balance optimism with caution.

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Conclusion: Will the Buyback Really Happen?

The Zomato Share Buyback Rumors July 2025 have clearly excited the market, but the final decision rests with the board. Given the current financial position, positive market sentiment, and a maturing business model, the chances of an actual buyback being announced are high.

If confirmed, Zomato could not only boost its stock performance in the short term but also reposition itself as a more shareholder-friendly business in the long term. For now, investors should keep a close watch on official announcements—but the signals are clearly pointing in a positive direction.

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