Eternal Ltd (formerly Zomato) announced its financial results for the second quarter of FY26 on October 16, 2025, reflecting a mixed performance with a sharp drop in profit but a significant rise in revenue. The company reported a 63% year-on-year decline in net profit to ₹65 crore, compared to ₹176 crore in the same period last year. However, profit after tax (PAT) showed improvement from ₹25 crore in the previous quarter (Q1 FY26), marking a 160% sequential rise.
Meanwhile, revenue from operations surged 183% YoY to ₹13,590 crore, compared to ₹4,799 crore in Q2 FY25. On a sequential basis, however, revenue was lower than ₹7,167 crore in the previous quarter. Total expenses for the July–September quarter rose to ₹13,813 crore from ₹4,783 crore a year earlier, reflecting the company’s expansion efforts across its verticals.
Food Delivery Segment
Eternal’s food delivery business showed signs of steady recovery after a phase of slow growth. The company recorded a 14% year-on-year increase in net order value (NOV), while profitability improved sequentially to a record 5.3% of NOV, up from 5% in the first quarter of FY26.
Founder and CEO Deepinder Goyal stated that while the food delivery growth rate was in line with expectations, recovery has been slower than desired. He highlighted that the company continues to focus on improving restaurant accessibility and affordability but faces near-term challenges, including subdued discretionary spending, quick commerce competition, and erratic weather conditions impacting demand.
Adjusted revenue from the food delivery segment rose 22% YoY to ₹2,863 crore, compared to ₹2,340 crore in the same period last year. On a sequential basis, the segment posted a rise from ₹2,657 crore in Q1 FY26. The average monthly transacting customers (MTCs) increased to 24.1 million, up from 22.9 million in the previous quarter and 20.7 million in Q2 FY25.
Quick Commerce Business
Eternal’s quick commerce vertical, led by Blinkit, continued to be a major growth driver. The net order value (NOV) for the segment surged 137% YoY and 27% quarter-on-quarter, marking its highest growth in the past 10 quarters. Revenue for the division increased 756% YoY to ₹9,891 crore, compared to ₹1,156 crore a year earlier, supported by a shift to an inventory ownership model.
The Adjusted EBITDA margin improved to -1.3% from -1.8% in Q1 FY26, reflecting better cost efficiency despite increased investments in expanding market share. Blinkit’s dark store count rose to 1,816, up from 791 a year ago, with consistent net additions each quarter. Average monthly transacting users climbed to 20.8 million from 8.9 million in Q2 FY25.
Blinkit’s founder, Albinder Dhindsa, said the company aims to expand to 3,000 stores by March 2027, maintaining its current pace of store additions. He noted that the business continues to see strong customer adoption and improved operational metrics.
Going Out Business
Eternal’s Going Out vertical reported a decline in revenue to ₹189 crore in Q2 FY26 from ₹207 crore in Q1 FY26, representing a 26% drop year-on-year. However, the business’s net order value improved to ₹2,063 crore compared to ₹1,562 crore in the same quarter last year, indicating better consumer engagement despite softer discretionary spending.
Operational and Financial Snapshot
The company ended Q2 FY26 with a cash balance of ₹18,314 crore, slightly down from ₹18,857 crore in the prior quarter. Eternal also announced the incorporation of a new wholly owned subsidiary — Eternal General Service Foundation, aimed at supporting its broader corporate initiatives.
Eternal’s adjusted EBITDA margin reached a record 5.3% during the quarter, underlining improved cost efficiency across its core businesses despite higher operational expenditures.
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Conclusion
Eternal’s Q2 FY26 performance highlights a phase of strategic investment and expansion across its food delivery and quick commerce verticals. While profitability declined year-on-year due to elevated expenses, the sharp rise in revenue and steady margin improvements suggest a strengthening business foundation.
The company’s continued focus on technological efficiency, customer reach, and store network expansion positions it for long-term growth amid a challenging consumption environment.
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