Eternal shares jump 8% even as Q1 FY26 profit tumbles 90%; here's why
Eternal Q1 results: During the quarter under review, profit came at Rs 25 crore as against Rs 253 crore in the year-ago period.
- Jul 21, 2025,
- Updated Jul 21, 2025 3:46 PM IST
Shares of Eternal Ltd (formerly Zomato Ltd) surged 7.56 per cent in Monday's fag-end trade to hit a high of Rs 276.80 despite the online food and quick commerce platform posting a 90.12 per cent sharp drop in its June 2025 quarter (Q1 FY26) consolidated net profit on a year-on-year (YoY) basis. During the quarter under review, profit came at Rs 25 crore as against Rs 253 crore in the year-ago period.
However, the company's revenue from operations improved significantly by 70.40 per cent. Revenue stood at Rs 7,167 crore in In Q1 FY26 compared to Rs 4,206 crore in the corresponding period last year, driven by the rapid rise of its quick commerce vertical Blinkit.
The company's B2C Net Order Value (NOV) surged 55 per cent YoY to Rs 20,183 crore, with quick commerce overtaking food delivery for the first time. Consolidated adjusted revenue rose 67 per cent YoY to Rs 7,563 crore.
However, profitability took a hit. Adjusted EBITDA dropped 42 per cent YoY to Rs 172 crore, primarily due to continued investments in Blinkit and the going-out segment. Margins in food delivery remained healthy at 5 per cent of NOV, despite seasonal pressures.
"I think the YoY growth is likely to bottom out now as we recover from the demand slowdown we started seeing in late 2024. For FY26, it looks unlikely that the business will deliver a 20 per cent-plus NOV growth but we should be north of 15 per cent and hopefully trending towards 20 per cent YoY growth in FY27," said Eternal CEO Deepinder Goyal.
Blinkit added 243 new stores during the quarter, with NOV growing 127 per cent YoY. Eternal also began transitioning Blinkit to an inventory-led model, expected to boost margins and revenue. Profitability in smaller cities also looks promising.
Meanwhile, the going-out segment -- now a Rs 8,000 crore annualized NOV business -- is gaining traction, aided by acquisitions in ticketing and events. The company closed Q1 FY26 with a Rs 18,857 crore cash balance.
Shares of Eternal Ltd (formerly Zomato Ltd) surged 7.56 per cent in Monday's fag-end trade to hit a high of Rs 276.80 despite the online food and quick commerce platform posting a 90.12 per cent sharp drop in its June 2025 quarter (Q1 FY26) consolidated net profit on a year-on-year (YoY) basis. During the quarter under review, profit came at Rs 25 crore as against Rs 253 crore in the year-ago period.
However, the company's revenue from operations improved significantly by 70.40 per cent. Revenue stood at Rs 7,167 crore in In Q1 FY26 compared to Rs 4,206 crore in the corresponding period last year, driven by the rapid rise of its quick commerce vertical Blinkit.
The company's B2C Net Order Value (NOV) surged 55 per cent YoY to Rs 20,183 crore, with quick commerce overtaking food delivery for the first time. Consolidated adjusted revenue rose 67 per cent YoY to Rs 7,563 crore.
However, profitability took a hit. Adjusted EBITDA dropped 42 per cent YoY to Rs 172 crore, primarily due to continued investments in Blinkit and the going-out segment. Margins in food delivery remained healthy at 5 per cent of NOV, despite seasonal pressures.
"I think the YoY growth is likely to bottom out now as we recover from the demand slowdown we started seeing in late 2024. For FY26, it looks unlikely that the business will deliver a 20 per cent-plus NOV growth but we should be north of 15 per cent and hopefully trending towards 20 per cent YoY growth in FY27," said Eternal CEO Deepinder Goyal.
Blinkit added 243 new stores during the quarter, with NOV growing 127 per cent YoY. Eternal also began transitioning Blinkit to an inventory-led model, expected to boost margins and revenue. Profitability in smaller cities also looks promising.
Meanwhile, the going-out segment -- now a Rs 8,000 crore annualized NOV business -- is gaining traction, aided by acquisitions in ticketing and events. The company closed Q1 FY26 with a Rs 18,857 crore cash balance.