Eternal's Quick Commerce Push Faces Profit Challenges Amid Expansion
Eternal, formerly known as Zomato and Blinkit, posted a net profit of Rs 25 crore for Q1, 2026. Despite revenue growth, profitability was hindered by investments in quick commerce. The company's annualized NOV reached USD 10 billion, with quick commerce becoming the largest segment, though profitability remains uncertain.
- Country:
- India
Eternal, the parent company of Zomato and Blinkit, reported a net profit of Rs 25 crore for the June quarter, amidst struggles with profitability due to investments in quick commerce and going-out businesses.
The company experienced significant revenue growth from Rs 4,206 crore to Rs 7,167 crore, year-on-year. Quick commerce NOV outpaced food delivery for the first full quarter. However, total expenses soared to Rs 7,433 crore. Profits were also impacted by restructuring, including the acquisition of Orbgen Technologies and Wasteland Entertainment.
CEO Deepinder Goyal and CFO Akshant Goyal outlined a future strategy focused on transitioning quick commerce from a marketplace to inventory ownership, while expanding their logistics capabilities. The road ahead involves maintaining competitive margins and refining operations, particularly in high-demand segments like Bistro's 10-minute food delivery.
(With inputs from agencies.)
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