In a strong display of business momentum, Eternal Ltd., the parent company of Zomato, reported an impressive 70% year-on-year jump in consolidated revenue for Q1 FY26, driven by robust performance across its key business verticals — food delivery, quick commerce (Blinkit), and Hyperpure. Following the results, Eternal’s shares surged 7.5% on the stock exchanges, marking one of its strongest single-day gains in recent weeks.
Q1 FY26 Financial Highlights:
- Revenue: ₹4,083 crore, up 70% from ₹2,403 crore in Q1 FY25
- EBITDA: Improved significantly, led by strong operating leverage in Zomato and better cost controls in Blinkit
- Net Profit: Marginally positive for the quarter, maintaining its profitability streak for the third consecutive quarter
- Shares Performance: Eternal’s stock jumped 7.5% intraday, hitting a multi-week high on strong investor sentiment
Segment-Wise Performance:
1. Zomato (Food Delivery Business)
Zomato’s core food delivery business continued to post steady growth in orders and higher average order value. The company also highlighted an increase in loyalty program subscribers and improved contribution margins.
2. Blinkit (Quick Commerce)
Blinkit emerged as the standout performer, more than doubling its revenue compared to the year-ago period. The company is now operationally break-even in several key metro markets. CEO Deepinder Goyal reiterated that Blinkit is on track to achieve company-wide profitability in the coming quarters.
3. Hyperpure (B2B Supplies)
Hyperpure saw healthy traction with new restaurant partnerships and higher repeat orders, contributing positively to overall revenue.
Key Management Commentary:
Eternal’s leadership stated that strong execution, improved cost efficiencies, and expansion into tier-2 and tier-3 cities are key growth drivers. The company plans to continue investments in technology, delivery infrastructure, and AI-powered logistics to further optimize operations.
Analyst Outlook:
Market analysts remain upbeat on Eternal, noting that sustained profitability and rapid growth in Blinkit could lead to long-term valuation upside. Many have raised their price targets following the strong Q1 print.
Conclusion:
Eternal Ltd.’s Q1 FY26 performance has reassured investors about the company’s profitability roadmap and expansion strategy. With Blinkit showing signs of becoming a major growth engine and food delivery stabilizing, the company looks poised for continued momentum in the upcoming quarters.
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