Eternal Ltd., formerly known as Zomato, released its Q1 FY26 financial results, revealing a mixed bag of soaring revenues and shrinking profits. The company posted a 67% year-on-year revenue growth, reaching ₹7,563 crore, but saw a sharp 90% drop in net profit, which fell to ₹25 crore from ₹253 crore in Q1 FY25.
Quick Commerce Takes the Lead For the first time, Eternal’s quick commerce arm Blinkit surpassed its traditional food delivery segment in Net Order Value (NOV), contributing nearly half of the company’s total B2C NOV of ₹20,183 crore. Blinkit added 243 new dark stores, bringing the total to 1,544, and doubled its monthly transacting users to 16.9 million. Despite aggressive expansion, Blinkit’s EBITDA margin improved from –2.4% to –1.8%, with several cities turning profitable.
Food Delivery Holds Steady Eternal’s core food delivery business showed resilience, with adjusted revenue rising 17.7% YoY to ₹2,657 crore. The segment’s EBITDA margin improved from 3.9% to 5.0% of NOV, even amid seasonal slowdowns. Monthly transacting customers grew to 22.9 million, indicating steady user engagement.
New Ventures and Strategic Shifts The company is investing heavily in new verticals like District, a platform for dining out, movies, and events, which now boasts an annualized NOV of ₹8,000 crore. Eternal also launched Blinkit Foods, a new subsidiary focused on food innovation and delivery. Additionally, the company is transitioning from a marketplace model to owning inventory, aiming to improve margins and operational control.
Profitability Under Pressure Despite strong top-line growth, Eternal’s adjusted EBITDA fell 42% YoY to ₹172 crore, driven by expansion costs in Blinkit, District, and the Bistro initiative. The company’s total expenses surged to ₹7,433 crore, up 77% from the previous year.
Sustainability and Leadership Eternal continues its Greening India initiative, aiming to plant 2.5 million trees across 10,000 acres. On the leadership front, the company introduced a rotational CEO model, with Aditya Mangla taking charge of the food delivery arm.
???? Market Reaction and Outlook Despite the profit dip, Eternal’s stock surged over 7% post-results, reflecting investor confidence in its long-term strategy. Brokerages have raised target prices, citing Blinkit’s growth and margin improvements. Eternal expects food delivery growth to exceed 15% this year and remains optimistic about its diversified portfolio.
Eternal’s Q1 results underscore a bold expansion strategy that prioritizes scale and innovation, even at the cost of short-term profitability. As the company bets big on quick commerce and lifestyle platforms, the coming quarters will reveal whether these moves translate into sustainable growth.