Eternal Limited Reports Significant Profit Decline Despite Yearly Growth
Eternal Limited's Financial Performance Overview
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New Delhi, July 22: Eternal Limited, the parent company of Zomato, announced a notable 47.1% drop in its net profit, reporting Rs 92 crore for the April-June quarter (Q1 FY27), down from Rs 174 crore in Q4 FY26.
Despite this quarterly decline, the online food service experienced a remarkable 268% increase in consolidated net profit compared to the same quarter last year. The consolidated adjusted revenue surged by 173% year-on-year, reaching Rs 20,648 crore, while adjusted EBITDA rose by 223% year-on-year to Rs 555 crore.
The Quick Commerce segment saw a net order value (NOV) increase of 86% year-on-year, totaling Rs 17,132 crore, with the business achieving an adjusted EBITDA profit of Rs 102 crore and marking its fifth consecutive quarter of margin improvement, as stated by the company.
Deepinder Goyal, the Founder of Eternal, commented, “If we're doing our job well, growth and margins should compound together - because growth in this business comes from making the platform more useful to more people, which drives frequency, which drives density, which drives efficiency. The flywheel doesn't ask you to choose.”
In addition, Blinkit expanded its network by adding 200 new stores, bringing the total to 2,443, while continuing to invest in assortment and geographical expansion, as well as demand densification.
The food delivery segment's NOV surpassed Rs 10,769 crore, reflecting a growth of over 20% year-on-year, with the adjusted EBITDA margin improving to 5.6%, resulting in a profit of Rs 606 crore.
Hyperpure also reported a 27% year-on-year revenue increase, reaching Rs 1,034 crore, and achieved positive adjusted EBITDA, generating a profit of Rs 6 crore compared to a loss in the same quarter last year.
Albinder Singh Dhindsa, Group CEO of Eternal, stated, “We continue to focus our efforts on our three pillars of long-term growth - assortment expansion, geographical expansion, and demand densification. Going forward, premiumisation through the launch of ‘gourmet’ stores in select locations in the top eight cities will also contribute to assortment expansion on the platform. These gourmet stores offer our customers the ability to buy curated premium brands across categories.”