Posted July 22, 2025
Eternal Q1 Results 2025: A Deep Dive Into Zomato’s Evolution and Performance
Introduction
What happens when a food delivery unicorn decides to reinvent itself? You get Eternal—formerly known as Zomato—an ambitious rebranding backed by a bold shift in business strategy. Eternal’s Q1FY26 results have made waves in the Indian market, not just for the numbers, but for what they signify: the rise of quick commerce and the evolution of online consumer behavior in India.
So, how did a company known for delivering biryani at midnight end up making nearly half its revenue from something else? Let’s unpack the numbers, the strategy, and what it means for the future of digital commerce in India.
Financial Highlights of Q1FY26
Net Profit Declines 90% YoY
Let’s start with the headline: Eternal’s consolidated net profit fell sharply by 90% YoY, from ?253 crore in Q1FY25 to just ?25 crore in Q1FY26. That’s not a small dip—it’s a massive hit. But there’s more beneath the surface.
Revenue Surges by 70.4%
Despite the profit plunge, revenue was up a whopping 70.4% YoY, climbing from ?4,206 crore to ?7,167 crore. On a quarter-over-quarter basis, revenue also saw a healthy 22.86% rise, showing momentum is clearly building.
Profit Sequentially Falls by 36%
Compared to Q4FY25’s ?39 crore net profit, the current ?25 crore is a 36% sequential drop, indicating the company is still spending heavily to power its new growth engines.
EBITDA & Profitability Insights
Adjusted EBITDA Drops 42% YoY
Adjusted EBITDA came in at ?172 crore, 42% lower than the same period last year. Eternal’s CFO, Akshant Goyal, pointed to high investments in quick commerce and going-out segments as key reasons.
Food Delivery Margins Improve
On the bright side, Adjusted EBITDA margin for food delivery improved to 5.0%, compared to 3.9% last year. This means traditional food delivery is becoming more efficient—even if it’s not the star of the show anymore.
Segment-Wise Performance
Quick Commerce Takes the Lead
For the first time ever, Quick Commerce NOV (Net Order Value) surpassed Food Delivery NOV in a full quarter. That’s huge! Eternal’s total B2C NOV stood at ?20,183 crore, marking a 55% YoY growth.
Food Delivery: Solid, but Slower
Food delivery remains a critical pillar, but it’s now overshadowed by the rocket-speed growth in quick commerce. The segment still contributes handsomely, especially with improved margins.
Hyperpure (B2B): Growth With Caution
Eternal’s B2B segment, Hyperpure, reported 89% YoY revenue growth, but the company expects a slowdown in coming quarters. It’s a sign that the B2B game might not be as scalable as B2C for Eternal.
Blinkit’s Role in Quick Commerce Growth
Massive Store Expansion
Blinkit, Eternal’s quick commerce arm, added 243 new stores in Q1FY26 alone, bringing the total to 1,544. The goal? 2,000 stores by December 2025.
Warehouse Space Crosses 5.6 Million Sq. Ft.
To support the growth, Blinkit also expanded warehousing by 0.4 million sq. ft., taking the total to over 5.6 million sq. ft.—a critical infrastructure move.
Customer Growth Surges 123%
Average Monthly Transacting Customers (MTC) more than doubled—from 7.6 million to 16.9 million. That’s a 123% jump YoY, showing rapid user adoption.
Profitability is Improving
Margins improved from -2.4% of NOV in Q4FY25 to -1.8% in Q1FY26. While still negative, the gap is narrowing fast, despite heavy investment in new stores.
Market Response & Stock Performance
Stock Closes 5.38% Higher
On the day of the results, Eternal’s share price closed at ?271.20, up 5.38%, making it the top gainer on Nifty 50.
Analyst Take: More Upside Ahead
Angel One’s Rajesh Bhosale stated the next resistance is at ?285, with immediate support at ?260. The strong volume-driven rally signals growing investor confidence.
Strategic Insights from Leadership
CFO on Investment Strategy
Akshant Goyal emphasized that short-term profitability was sacrificed to invest in future growth areas like quick commerce, warehousing, and customer acquisition.
Blinkit CEO’s Vision
Albinder Dhindsa, CEO of Blinkit, highlighted that store count and logistics infrastructure are key to capturing market share in a fiercely competitive space.
Challenges and Risks Ahead
Hyperpure’s Uncertain Future
While Hyperpure saw strong YoY growth, Eternal warned of an expected slowdown. This may limit diversification unless new B2B opportunities arise.
Quick Commerce Is a Cash Burner
Yes, it’s growing fast. But quick commerce is capital intensive, and sustaining this momentum without bleeding cash will be Eternal’s biggest test.
The Bigger Picture: Eternal’s Future Vision
Beyond Food Delivery
From biryani to grocery to logistics, Eternal is now more than just a food delivery company. It wants to be India’s go-to digital commerce platform.
Digital India’s Changing Face
With rising internet penetration, faster delivery expectations, and evolving consumer behavior, Eternal is placing its bets on the right trends.
Investor Takeaways
Should You Buy the Stock?
If you're a long-term investor with a risk appetite, Eternal could be a solid buy-on-dips candidate. The quick commerce segment has massive potential.
Opportunities in Quick Commerce
With Blinkit on the frontlines, investors should track customer acquisition, profitability trends, and store expansion closely over the next few quarters.
Conclusion
Eternal’s Q1FY26 results paint a tale of transition. While profits have taken a hit, revenue growth, user expansion, and infrastructure scaling are all pointing toward a bigger, bolder future. The company is no longer just delivering food—it’s delivering on a vision to become India’s leader in quick commerce. And by the looks of it, they're just getting started.
Disclaimer
The information provided in this article is for educational and informational purposes only. It does not constitute financial, investment, legal, or tax advice. Please consult with a certified financial advisor or a SEBI-registered professional before making any investment decisions. The author and publisher are not responsible for any financial losses or legal consequences incurred as a result of using this information
