Eternal Q1FY26 Results: Zomato Profit Tanks 90%, Revenue Surges on Blinkit’s Growth

Eternal Ltd, the parent company of food delivery major Zomato, has reported a 90% year-on-year (YoY) decline in quarterly profit after tax (PAT) at ₹25 crore in the first quarter of financial year 2026. However, the company witnessed ₹253 crore in net profit in the same period a year ago.

Its revenue from operations increased by more than 70% YoY to ₹7,167 crore in Q1 FY26, up from Rs 4,206 crore a year ago. In the previous quarter, the company’s revenue stood at ₹5,833 crore.

Zomato’s total expenses surged to ₹7,433 crore in the June quarter, rising from ₹4,203 crore in the same period last year and ₹6,104 crore in the previous quarter. Despite the increase in spending, the company’s cash reserves remained steady at ₹18,857 crore, almost unchanged from ₹18,824 crore in the March quarter.

“NOV of our B2C businesses grew 55% YoY (16% QoQ) to INR 20,183 crore in Q1FY26. This was the first quarter where our quick commerce NOV exceeded food delivery NOV for the full quarter. On an annualised basis, we are now at almost $10 billion of annual NOV across our B2C businesses, and quick commerce is now our largest B2C business contributing to almost half of this annualized NOV,” said CFO Akshant Goyal.

How Food Delivery Biz Performed?

The company’s food delivery business posted an adjusted revenue of ₹2,657 crore for Q1 FY26, over a 17% increase (YoY) from ₹2,256 crore from the same period a year ago. Its sequential revenue also rose by 10% from ₹2,409 crore in the March quarter, even as the segment continues to face muted demand.

Its food business’ gross order value (GOV) grew 10% quarter-on-quarter - from ₹9,778 crore in Q4FY25 to ₹10,769 crore in the June quarter. The GOV was up from ₹9,264 crore in Q1 FY25 on a yearly basis.

"Every year in Q1, margins get, because of lower availability of delivery partners due to festivals and adverse weather conditions. In the past, in the food delivery business, this pressure on margins in Q1s used to be offset by improvement in other areas; but now that margins have matured in this business, such fluctuations driven by seasonal factors are possible,” said CEO Deepinder Goyal.

The platform’s average monthly transacting customers (MTCs) climbed to 22.9 million in Q1FY26, up from 20.9 million in the previous quarter and 20.3 million in the corresponding period last year.

“Long term, we believe there is further scope of some margin expansion but the current focus is on ramping up investments to drive further growth in the business, while maintaining margins in the 5% (of NOV) ballpark," he added.

How Quick Commerce Biz Performed?

The company’s quick commerce arm, Blinkit reported a EBITDA loss of ₹162 crore in Q1 FY26, an increase from a loss of ₹3 crore incurred during the same period last year, due to dark store expansion. The company increased its dark store count from 639 last year to 1,544 in Q1 FY26.

On a sequential bsis, the adjusted EBITDA loss was comparatively lower than ₹178 crore recorded in Q4 FY25. Its revenue also witnessed an increase of 155% YoY to ₹2,400 crore. In the previous quarter, the number stood at 942 crore.

Meanwhile, Blinkit’s gross order value (GOV) rose sharply to ₹11,821 crore in the June quarter, up from ₹4,923 crore in Q1 FY25 and ₹9,421 crore in the preceding quarter. The platform’s average order value (AOV) remained largely stable at ₹669 during the quarter, showing a slight uptick from ₹665 in the March quarter and ₹625 in the same period last year.

“Our NOV grew 127% YoY driven by a 123% YoY growth in average monthly transacting customers (MTC) from 7.6 million to 16.9 million over the past year. On the profitability front, the margins improved from -2.4% of NOV in Q4FY25 to -1.8% despite continued investments in new store roll-outs and seasonal factors," said Blinkit CEO Albinder Dhindsa.

Shares of Zomato’s parent company surged 7.5% at market closing, buoyed by upbeat commentary from the management.