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Eternal, at the end of the March quarter, had highlighted that competition is likely to intensify in the near-term and that they will aggressively look to grow market share and not let short-term profitability goals come in the way.
Shares of Eternal Ltd, parent company of food delivery aggregator Zomato Ltd and quick commerce operator Blinkit Ltd, rose sharply after the company released its April-June quarter (Q1FY26) results just ahead of market close on Monday, 21 July.
Blinkit's revenue for the quarter surged to ₹2,400 crore, surpassing Zomato’s food delivery revenue of ₹2,261 crore. The development is significant as Blinkit overtakes its sibling brand in contribution to the company’s topline.
Overall, Eternal's consolidated revenue grew 70% year-on-year to ₹7,167 crore, exceeding estimates from Kotak Securities, which had projected a 58% increase to ₹6,682 crore. However, net profit fell sharply by 90% to ₹25 crore from ₹253 crore a year ago, showing margin pressures.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹115 crore, a 35% decline from the previous year, and lower than the projected ₹130.2 crore.
Blinkit’s remarkable growth compares with ₹942 crore in revenue during the same period last year. In contrast, Zomato’s food delivery segment rose more modestly from ₹1,942 crore.
At the end of the previous quarter, Eternal had indicated that competition would likely intensify and reiterated its focus on market share expansion over short-term profitability.
Also, Eternal, the parent company of food delivery platform Zomato and quick commerce major Blinkit, has incorporated a new wholly owned subsidiary called Blinkit Foods.
Following the announcement, Eternal shares extended their gains, rising 7% on the day to ₹275.20. The stock has climbed 30% year-to-date, reflecting investor optimism despite earnings volatility.
(Edited by : Ajay Vaishnav)
First Published:
Jul 21, 2025 12:39 PM
IST
