127
/ 1
Min Read
Eternal, the parent firm of Zomato and Blinkit, kicked off FY26 with strong revenue momentum but a sharp erosion in profits, highlighting the financial strain of aggressive expansion in India’s competitive delivery space.
The company reported a consolidated net profit of ₹25 crore for the April–June quarter, plunging 90% from ₹253 crore in the same period last year. This steep fall in bottom-line performance came despite a 70% year-on-year surge in revenue to ₹7,167 crore.
Compared to the previous quarter (Q4 FY25), net profit was down 36%, while revenue climbed nearly 23%.
Blinkit, Eternal’s quick-commerce arm, continued its rapid ascent with revenue more than doubling to ₹2,400 crore — a 155% year-on-year growth. Gross order value also jumped to ₹11,821 crore, up from ₹4,923 crore a year earlier.
However, the pace of Blinkit’s dark store expansion weighed heavily on the bottom line. The unit’s EBITDA loss widened to ₹162 crore, compared to a modest ₹3 crore loss in Q1 FY25. On a sequential basis, losses narrowed from ₹178 crore.
Zomato’s core food delivery business posted steady growth, with adjusted revenue rising nearly 18% year-on-year to ₹2,657 crore. The platform’s quarterly GOV rose 10% from the previous quarter to ₹10,769 crore, as active monthly users grew to 22.9 million, up from 20.3 million a year ago.
Eternal’s consolidated adjusted EBITDA dropped 42% to ₹172 crore, underlining growing operational costs as the company scales its offerings.
Despite strong topline gains, the latest results reflect the growing pains of balancing rapid expansion with sustainable profitability — particularly in India’s fiercely contested food and quick-commerce landscape.
