Zomato parent Eternal's Q1 profit falls 90% despite revenue surge
What's the story
Eternal Ltd, the parent firm of Zomato and Blinkit, has reported a massive 90% year-on-year decline in its quarterly profit after tax (PAT). The company's PAT for the first quarter of FY26 stood at ₹25 crore, compared to ₹253 crore in the same period last year. Despite this sharp decline, Eternal's shares on National Stock Exchange (NSE) surged as much as 7.5% owing to a spike in orders at its quick commerce arm Blinkit.
Revenue growth
Eternal's revenue jumps 70.4% YoY
Eternal, which changed its name from Zomato to Eternal in March, saw a massive 70.4% jump in its revenue from operations. The company's revenue for Q1 FY26 stood at ₹7,167 crore, compared to ₹4,206 crore in the same period last year. This is also an increase over the previous quarter's revenue of ₹5,833 crore.
Financial details
Total expenses rise to ₹7,433cr
Eternal's total expenses for the June quarter rose to ₹7,433 crore, up from ₹4,203 crore in the same period last year, and ₹6,104 crore in the previous quarter. The adjusted revenue for its food delivery business also grew by 17.7% YoY to ₹2,657 crore in Q1 FY26. This is an increase over last year's Q1 revenue of ₹2,256 crore and a 10% jump over the previous quarter's revenue of ₹2,409 crore.
Performance
Blinkit reports ₹2,400cr revenue
Eternal's quick commerce division, Blinkit, witnessed a staggering 155% YoY jump in its revenue to ₹2,400 crore in Q1 FY26. This is a significant increase from last year's Q1 revenue of ₹942 crore and the previous quarter's ₹1,709 crore. However, despite the sharp rise, Blinkit reported an EBITDA loss of ₹162 crore for Q1 FY26 due to rapid dark store expansion.