Eternal Q1 FY26: Quick Commerce Surges Ahead as Revenue Climbs 67% While Net Profit Declines by 90%

Eternal (formerly Zomato) has announced its Q1 FY26 results (quarter ended June 30, 2025). The top-line revenues show a strong growth trajectory, with consolidated adjusted revenue up 67% YoY to ₹7,563 crore. Meanwhile, net profit dropped to ₹25 crore, down sharply from ₹253 crore in Q1 FY25, marking a 90% YoY decline in earnings. This decline was fully driven by sustained spending on Blinkit’s expansion, District, the Bistro initiative, and the shift toward owning inventory.

If one looks at Eternal’s foodtech portfolio, it saw quick commerce overtake food delivery in Net Order Value (NOV), while heavy investments in new verticals trimmed profit margins. The company implemented a rotational CEO model and launched a major agroforestry initiative as it eyes sustained expansion.

Financial Performance in Snapshot of Eternal's Q1 FY 26

Eternal kicked off Q1 FY26 (ended June 30, 2025) with impressive momentum, as strong consumer demand across all its businesses helped boost adjusted revenue by 67% year-on-year, reaching ₹7,563 crore. The NOV, which totals orders from food delivery, quick commerce, and the dining-out platform, jumped 55% YoY to ₹20,183 crore. A big milestone this quarter: meanwhile, Blinkit’s quick commerce arm surpassed the traditional food delivery business in order value for the first time. Looking ahead, if current trends hold, Eternal’s consumer businesses are set to hit an annualized NOV of nearly $10 billion, with quick commerce now contributing close to half of that. On the B2B front, Hyperpure delivered another strong performance, with its revenue growing 89% YoY, though management cautioned that this pace may slow due to planned structural changes.

Eternal Q1 FY 26: Key Takeaways on Core Business Parameters

Profitability-Heavy Costs, Margins Under Pressure: The backdrop to Eternal’s strong first-quarter revenue momentum came with a price. Adjusted EBITDA fell 42% year-on-year to ₹172 crore, as the company invested heavily in expanding Blinkit and launching the District “going out” platform. These strategic bets, while ambitious, weighed on overall margins.
Food Delivery: Steady Margins Amid Growth. The positive side is food delivery—Eternal’s core business—it continues to mature. Its EBITDA margin rose from 3.9% to 5.0% (as a % of NOV), even with seasonal slowdowns during holidays and the monsoon season.

Leadership Overhaul- Rotational CEO Model: Eternal also shook things up at the top by launching a rotational CEO model where each business head serves a fixed two-year term. The idea is to inject fresh thinking and urgency into leadership. As part of this effort, Aditya Mangla—a product and engineering veteran—became the new CEO of Zomato’s food delivery arm, marking the first time someone outside the founder circle has held this role.

Rising Star Blinkit - Scaling Smartly: Blinkit continues its rapid climb, adding 243 dark stores this quarter (now totaling 1,544) with plans to reach 2,000 by year-end. Monthly transacting users more than doubled to 16.9 million. The unit is edging closer to profitability, with its EBITDA margin improving from –2.4% to –1.8%, and several cities already turning profitable.

District Domination: Eternal is pushing the innovation envelope with its venture District (going out). Goyal mentioned, “I am excited about where we have gotten to in this business, and the journey that lies ahead. Going out is now an INR 8,000 crore annualized NOV business, about 20% the size of our food delivery and quick commerce businesses. And, on a like for like basis, growing at 30%+ YoY. In Q1 FY26, we had about 2 million average monthly transacting customers transacting about two times a month on average with a net AOV (NAOV) of INR 1,700+. We are building District as a one of a kind platform for going out in India by offering large going out use cases including dining out, movies, sports, concert ticketing, etc. on a single app, for the most premium customer base in the country.”

Meanwhile, on the sustainability front, the Greening India initiative plans to plant 2.5 million trees across 10,000 acres this year, aiming to offset around 1.5 million tonnes of CO₂ over three decades. Bistro, District, and Greening India are all funded under the “Others” segment, which is backed by a ₹150 crore investment this fiscal year.

Outlook – Growth with Strategic Discipline: Looking forward, Eternal’s founder shared on LinkedIn, “However, as always, we are just 1% done. We’re excited about the path we’re on and grateful for your continued support.” So clearly, expansion will continue at the expense of profits as building for scale continues, while emphasis remains on margin discipline. It is indeed a double-edged sword.

Eternal expects food delivery growth to exceed 15% this year, anticipates further EBITDA improvement at Blinkit, and remains optimistic about the long-term potential of Bistro, District, and Greening India. The sharp profit drop highlights the short-term cost of expansion, but the company believes this build out sets the stage for long term value creation.