Zomato Eternal Q1 Results: Revenue Surges 70% Despite Profit Drop

Zomato Eternal Q1 Results: Why Blinkit’s Growth Is Reshaping India’s Quick Commerce Sector

Zomato Eternal Q1 Results: A Turning Point in India’s Quick Commerce Evolution

The Q1 FY26 results of Eternal Ltd., formerly known as Zomato, have sparked intense market interest. Despite a sharp 90% year-on-year drop in net profit to ₹25 crore, the company posted a staggering 70% revenue growth, reaching ₹7,167 crore. This paradoxical performance has led to a flurry of analyst upgrades and investor speculation, especially around Blinkit, Eternal’s quick commerce arm, which has now overtaken food delivery in net order value (NOV).

Quick Commerce Surpasses Food Delivery: A Strategic Shift

• Blinkit’s NOV surged past food delivery for the first time, marking a pivotal moment in Eternal’s business model.

• Blinkit’s gross order value (GOV) hit ₹11,821 crore, while food delivery GOV stood at ₹10,769 crore.

• Revenue from Blinkit rose 155% YoY to ₹2,400 crore, compared to food delivery’s ₹2,261 crore.

This shift signals Eternal’s growing reliance on quick commerce, which now contributes nearly half of its annualized NOV.

Why This Is Trending Right Now

• Eternal’s Q1 results were released during market hours, causing a 7% surge in its stock price.

• Brokerages like Jefferies, CLSA, and Nuvama raised their target prices, some going as high as ₹400.

• Blinkit’s expansion strategy, including 243 new dark stores and a move to an inventory-led model, is driving investor optimism.

• The quick commerce sector in India is booming, with a CAGR of 142% from FY22 to FY25, reaching ₹64,000 crore.

Eternal’s Financial Snapshot: Q1 FY26

• Net Profit: ₹25 crore (down 90% YoY)

• Revenue: ₹7,167 crore (up 70% YoY)

• Adjusted EBITDA: ₹172 crore (down 42% YoY)

• Total B2C NOV: ₹20,183 crore (up 55% YoY)

Despite the profit decline, Eternal maintained profitability for the second consecutive quarter, thanks to strong operational growth.

Blinkit’s Rise: The New Growth Engine

• Monthly transacting users doubled to 16.9 million.

• Average order value held steady at ₹669.

• Blinkit added 0.4 million square feet of warehouse space, totaling over 5.6 million square feet.

• Plans to reach 2,000 stores by December 2025 are underway.

Blinkit’s performance is validating Eternal CEO Deepinder Goyal’s prediction that quick commerce would eventually outpace food delivery.

Food Delivery: Stable but Slower

• Food delivery revenue grew 17.7% YoY to ₹2,657 crore.

• GOV increased 10% QoQ to ₹10,769 crore.

• Monthly transacting customers rose to 22.9 million.

While growth is steady, Eternal acknowledges that food delivery is facing demand headwinds and seasonal margin pressures.

Strategic Moves and Leadership Changes

• Eternal is transitioning to a first-party inventory model to improve margins.

• The rotational leadership model has been implemented, with Aditya Mangla appointed CEO of the food delivery business.

• Blinkit Foods, a new subsidiary, has been incorporated to focus on food services.

These moves reflect Eternal’s intent to decentralize operations and inject fresh energy into its verticals.

Analyst Sentiment and Stock Performance

• Jefferies upgraded Eternal to ‘Buy’ with a ₹400 target.

• CLSA and Bernstein also raised targets, citing Blinkit’s GOV and contribution growth.

• Eternal’s stock has surged 31% year-to-date and delivered nearly 400% returns over three years.

The bullish sentiment is driven by Eternal’s consistent revenue growth and strategic pivot toward quick commerce.

FAQ Section

Q: Why did Eternal’s profit drop despite revenue growth?

A: The profit decline is due to increased investments in Blinkit and expansion costs, though revenue surged due to strong operational performance.

Q: Is Blinkit now bigger than Zomato’s food delivery?

A: Yes, Blinkit’s NOV and GOV surpassed food delivery for the first time in Q1 FY26.

Q: What is Eternal’s future strategy?

A: Eternal is shifting to an inventory-led model, expanding Blinkit’s footprint, and decentralizing leadership to drive growth.

Q: Should investors consider Eternal stock?

A: Many brokerages have upgraded their ratings, but investors should consult certified experts before making decisions.

Conclusion: Eternal’s Bold Bet on Quick Commerce

Eternal’s Q1 FY26 results mark a strategic inflection point. While profit margins are under pressure, the company’s aggressive push into quick commerce is reshaping its identity and market positioning. Blinkit’s explosive growth, coupled with operational shifts and leadership changes, suggests Eternal is betting big on the future of fast, efficient consumer delivery.

As India’s digital economy matures, Eternal’s ability to adapt and innovate will determine whether it remains a dominant force in the quick commerce revolution. For now, the numbers speak volumes—and the market is listening.