Zomato Eternal Q1 Results: Eternal Ltd., the parent company of the popular food delivery platform Zomato, recently unveiled its Q1 results for the financial year 2025-26, and it’s a story of impressive revenue growth overshadowed by a steep dip in profits. As someone who follows the food tech space closely, I found the numbers both fascinating and telling about where Eternal is headed. With its rebranding from Zomato to Eternal earlier this year, the company is clearly doubling down on its diverse portfolio, especially its quick commerce arm, Blinkit. Let’s dive into the key highlights of the Q1 FY26 results, announced on July 21, 2025, and unpack what they mean for Eternal’s future.
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Revenue Soars, but Profits Take a Hit
Eternal reported a robust 70.4% year-on-year (YoY) jump in revenue from operations, reaching ₹7,167 crore in Q1 FY26, up from ₹4,206 crore in the same quarter last year. Sequentially, revenue grew by 22.86% from ₹5,833 crore in Q4 FY25. This growth is nothing short of impressive, especially when you consider the competitive landscape of food delivery and quick commerce. However, the headline-grabbing number was the 90% YoY drop in consolidated net profit, which plummeted to ₹25 crore from ₹253 crore in Q1 FY25. Even on a quarter-on-quarter (QoQ) basis, profit fell 36% from ₹39 crore. The dip in profitability, as Eternal’s CFO Akshant Goyal explained, stems from heavy investments in Blinkit and the company’s going-out business, District. It’s a classic case of spending big now to scale for the future, but it’s got investors wondering about the payoff.
Blinkit Steals the Show
The star of Eternal’s Q1 performance was undoubtedly Blinkit, its quick commerce arm. For the first time, Blinkit’s net order value (NOV) surpassed that of the food delivery segment, hitting ₹9,203 crore compared to food delivery’s ₹8,967 crore. Blinkit’s revenue skyrocketed by 154.7% YoY to ₹2,400 crore, driven by a 140.1% surge in gross order value (GOV) to ₹11,821 crore. The platform also saw a massive 122% YoY increase in monthly transacting customers, reflecting its growing popularity. Blinkit added 243 new stores, bringing its total to 1,544, and the company is on track to hit 2,000 stores by December 2025. This aggressive expansion shows Eternal’s confidence in quick commerce as a game-changer, even if it’s burning cash in the short term.
Food Delivery Holds Steady
While Blinkit grabbed the spotlight, Zomato’s core food delivery business still delivered solid numbers. Adjusted revenue rose 17.7% YoY to ₹2,657 crore, with GOV climbing to ₹10,769 crore, a 16.24% YoY increase. The segment’s adjusted EBITDA margin improved to 5% from 3.9% last year, showing better operational efficiency. Monthly transacting customers grew to 22.9 million, up from 20.9 million in Q4 FY25. However, CEO Deepinder Goyal noted that food delivery growth has been slower than expected, with FY26 NOV growth likely to hover around 15% rather than the 20%+ target. Despite this, the segment’s stability provides a strong foundation as Eternal pivots toward newer ventures.
Hyperpure and District: Mixed Signals
Hyperpure, Eternal’s B2B supplies arm, posted an 89% YoY revenue increase to ₹2,295 crore, but the company anticipates a decline in this segment due to a strategic shift toward inventory ownership in quick commerce. This move could streamline operations but might dent short-term growth. Meanwhile, District, Eternal’s going-out business, is showing promise with an average revenue per order of over ₹160, higher than both Zomato and Blinkit. The company sees District scaling to a $3 billion annual topline in the next five years, but it’s still early days, and profitability remains a question mark. These ventures highlight Eternal’s ambition to diversify, but they’re also adding pressure on margins.
Stock Market Cheers Despite Profit Slump
Despite the profit drop, Eternal’s stock surged, climbing 14.8% to an all-time high of ₹311.6 on July 22, 2025, pushing its market cap past ₹3 trillion. The rally reflects investor optimism about Blinkit’s growth and Eternal’s long-term potential, even as some brokerages like Macquarie remain cautious, citing competitive pressures in quick commerce. Analysts like Sugandha Sachdeva from SS WealthStreet argue that Eternal’s focus on digital adoption and improving unit economics justifies the bullish sentiment. The stock’s technical structure also looks strong, with support at ₹260 and potential to hit ₹286 soon. For investors, it’s a bet on Eternal’s ability to balance growth and profitability in a hyper-competitive market.
In summary, Eternal’s Q1 FY26 results paint a picture of a company in transition. The revenue growth is a testament to its ability to scale, but the profit slump underscores the costs of ambition. Blinkit’s rise as the largest B2C segment is exciting, but it’s clear that Eternal is playing a long game. As a fan of how tech is reshaping everyday life, I’m curious to see if Eternal can turn its investments into sustainable profits while keeping customers hooked on its services.