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Eternal-owned District, a separate offering launched for its dining and going out businesses, has quietly entered into fashion by launching clothes, apparel and accessories on its app to expand revenue streams, as per recent media reports.
Now, Eternal will also be pitted against Nykaa, its Fashion division, Walmart’s entities Flipkart and Myntra, Amazon Fashion and giant Reliance Retail-owned Ajio. The launch was confirmed on the District app.The app which was spun off as a separate vertical, and then merged with Paytm Insider, initially had plans only to sell movie and experience tickets on its platform and had not indicated plans to enter into e-commerce full swing.
It remains unclear how much Eternal (formerly Zomato) will focus on this offering. This comes shortly after Eternal posted a 90% drop in profits to Rs 25 crore in Q1FY26 but a 70% rise in revenues to Rs 7,167 crore from Rs 4,206 crore, driven primarily by strong performance in Blinkit and its B2B platform, Hyperpure.
Despite robust top-line growth, Eternal’s profitability was hit by continued investments in its fast-growing quick commerce segment and “going-out” businesses. Adjusted EBITDA fell 42% year-over-year to Rs 172 crore, with CFO Akshant Goyal attributing the contraction to these investments.
Food delivery margins improved to 5.0% of Net Order Value (NOV), up from 3.9% a year earlier. Total expenses rose to Rs 7,433 crore in Q1FY26, up from Rs 4,203 crore in the year-ago period.
