Why Did Eternal, Formerly Zomato, See a 63% Drop in Q2 Profit?
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Synopsis
Eternal, the food delivery service formerly known as Zomato, reported a startling 63% drop in its net profit for Q2 FY26. Despite a massive revenue jump, the company faces challenges ahead. What does this mean for the future of the quick commerce sector in India?
Key Takeaways
- 63% drop in net profit for Q2 FY26
- Revenue surged by 183% YoY
- Adjusted EBITDA fell by 32%
- 272 new stores added
- 39 lakh new monthly transacting customers
Mumbai, Oct 16 (NationPress) The food delivery service Eternal, previously known as Zomato, revealed a significant 63% decline in its net profit for the July–September quarter of the ongoing financial year (Q2 FY26) on Thursday.
The company recorded a profit of Rs 65 crore, down from Rs 176 crore in the same quarter last year (Q2 FY25). Nevertheless, this profit exceeds the Rs 25 crore reported in the preceding quarter (Q1 FY26).
Eternal’s operational revenue surged by 183% year-on-year (YoY) to Rs 13,590 crore, compared to Rs 4,799 crore in the corresponding quarter of the prior financial year.
Sequentially, the revenue increased by 90% from Rs 7,167 crore in the April–June quarter (Q1 FY26).
The company’s adjusted EBITDA fell by 32% YoY, totaling Rs 224 crore in Q2 FY26, according to its filing with the stock exchange.
Eternal’s quick commerce division experienced robust growth during the July–September period, with its net order value (NOV) soaring by 137% YoY and 27% compared to the previous quarter — marking the highest growth in the last decade.
The company expanded its footprint by adding 272 new stores within the quarter.
Furthermore, it enjoyed consistent customer growth, incorporating approximately 39 lakh new monthly transacting customers (MTCs).
Blinkit, Eternal’s quick commerce segment, reported a reduced quarterly loss of Rs 156 crore, down from Rs 162 crore in the prior quarter.
The adjusted EBITDA margin also saw a slight improvement from -1.8% to -1.3% of NOV.
“Our customer base is expanding swiftly, instilling confidence in our continued investment in transforming District into India’s ultimate destination for diverse going-out use-cases,” stated Deepinder Goyal, Founder & CEO of Eternal.
After reaching a 52-week high earlier in the day prior to the earnings announcement, Eternal’s stock faced pressure. The shares ended the trading session at Rs 340.50, a decrease of Rs 13.85 or 3.91% on the NSE.
Point of View
The steep decline in Eternal's profits underlines the competitive pressures within the food delivery and quick commerce sectors. While revenue growth is promising, profitability remains a crucial challenge. It is essential for stakeholders to focus on sustainable strategies that balance growth with profitability.
NationPress
16/10/2025
Frequently Asked Questions
What caused the decline in Eternal's profit?
The significant drop in profit is attributed to increased operational costs and competitive pressures in the food delivery market.
How much did Eternal's revenue increase?
Eternal's revenue from operations surged by 183% year-on-year, reaching Rs 13,590 crore.
What is the status of Blinkit, Eternal's quick commerce arm?
Blinkit managed to reduce its quarterly losses to Rs 156 crore, indicating some improvement in its financial performance.
What did the CEO of Eternal say about customer growth?
Deepinder Goyal emphasized the rapid expansion of the customer base, which encourages ongoing investment in their services.
