Eternal Q1FY26 Results: Profit plunges 90% to Rs 25 crore despite 70% revenue surge
Published on 21/07/2025 04:58 PM
Eternal Ltd, the parent company of Zomato and quick commerce platform Blinkit, reported a sharp drop in net profit for the quarter ended June 2025 (Q1FY26), even as operational revenue soared, driven by strong growth in its quick commerce segment.
According to Eternal’s Q1FY26 earnings report, consolidated net profit declined 90 per cent year-on-year (YoY) to Rs 25 crore, compared to Rs 253 crore in Q1FY25. On a sequential basis, profit fell 36 per cent from Rs 39 crore in Q4FY25.
The company’s revenue from operations surged 70 per cent YoY to Rs 7,167 crore, up from Rs 4,206 crore in the same quarter last year. Compared to the previous quarter, revenue grew 23 per cent, up from Rs 5,833 crore in Q4FY25.
Despite the strong topline performance, Eternal’s total expenses jumped 77 per cent YoY to Rs 7,433 crore, up from Rs 4,203 crore. Sequentially, expenses rose 22 per cent from Rs 6,104 crore, significantly impacting profit margins.
Eternal’s Chief Financial Officer Akshant Goyal said the profit decline was largely due to continued investments and expansion in the quick commerce business. The company added 243 new Blinkit stores in Q1, contributing to the rapid growth in quick delivery operations.
The net order value (NOV) for quick commerce rose 127 per cent YoY to Rs 9,203 crore, surpassing the food delivery NOV, which grew 13 per cent to Rs 8,967 crore. This marks the first time that Blinkit’s order value exceeded that of Zomato’s food delivery segment.
Despite the steep profit drop, Eternal shares surged over 7 per cent in intraday trade on Monday, ahead of the earnings announcement. Investor sentiment remained positive, supported by the robust growth outlook of its high-performing subsidiaries.
At 3:21 PM, Eternal shares were trading at Rs 274.80, up 6.84 per cent or Rs 17.60 on the BSE. The stock ended the day at Rs 271.20 apiece, up nearly 7 per cent.
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