Eternal Q1FY26 Results: Zomato’s Transformation Gains Speed, But at a Cost


 Introduction

Eternal, the new identity of Zomato, is no longer just a food delivery company. Its Q1FY26 results reflect a bold pivot—one that prioritizes quick commerce, scale, and speed over short-term profit. While revenue growth is strong, profitability has taken a back seat as the company invests aggressively in its future.

Key Financials: Growth With Strain

  • Net Profit: ₹25 crore, down 90% YoY (vs ₹253 crore in Q1FY25)

  • Revenue: ₹7,167 crore, up 70.4% YoY (vs ₹4,206 crore)

  • QoQ Revenue Growth: 22.9%

  • Sequential Profit Drop: 36% (from ₹39 crore in Q4FY25)

  • Adjusted EBITDA: ₹172 crore, down 42% YoY

Despite falling profits, Eternal is scaling aggressively—especially in new segments.

Segment-Wise Breakdown

1. Quick Commerce: Now the Growth Engine

  • First time Blinkit’s NOV beat food delivery

  • Total B2C NOV: ₹20,183 crore (up 55% YoY)

  • Store Count: +243 QoQ → 1,544 total; target: 2,000 by Dec 2025

  • Warehouse Space: 5.6 million sq. ft.

  • Monthly Transacting Customers: 16.9 million (up 123% YoY)

  • Margins: -1.8% of NOV (up from -2.4% in Q4FY25)

2. Food Delivery: Steady, Leaner

  • Margins improved to 5.0% (vs 3.9% last year)

  • Stable contributor, but no longer the star performer

3. Hyperpure (B2B): High Growth, Low Visibility

  • Revenue up 89% YoY

  • Management warns of slower quarters ahead, pointing to scalability concerns

Market Reaction

  • Stock rose 5.38%, closing at ₹271.20 post-results

  • Analyst View: Resistance at ₹285; support at ₹260

  • Investor sentiment reflects confidence in Blinkit’s trajectory

Leadership Signals

  • Akshant Goyal (CFO): Reiterated Eternal is investing ahead of the curve, prioritizing long-term market dominance

  • Albinder Dhindsa (Blinkit CEO): Growth will hinge on store density and logistics infrastructure

Challenges Ahead

  • Quick Commerce is Capital-Intensive: Growth must eventually lead to profitability

  • Hyperpure’s Growth May Plateau: Limited visibility on future scalability in B2B

  • Balancing Burn vs. Scale: Eternal must walk the tightrope between user acquisition and cost control

Strategic Direction

Eternal is shifting its identity from a food delivery app to an all-encompassing digital commerce platform. Blinkit is now the focus—offering the scale, speed, and stickiness needed to dominate India’s instant commerce space.

Investor Perspective

  • Long-Term Bet: Eternal is a classic case of growth-first strategy

  • High-Risk, High-Reward: Suitable for investors who believe quick commerce can be sustainably monetized

  • Key Metrics to Track: Blinkit’s profitability, store expansion, user growth, and burn rate

Conclusion

Eternal’s Q1FY26 results tell a story of reinvention. Revenues are soaring, but profits are under pressure. With Blinkit at the center of its growth narrative, Eternal is chasing leadership in India’s fast-moving commerce landscape. It’s no longer just delivering food—it’s delivering the future.

Disclaimer

This report is for informational purposes only and is not financial or investment advice. Please consult a SEBI-registered financial advisor before making any investment decisions.

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