Eternal Ltd Q4 FY26 Performance Highlights

Eternal Limited, formerly known as Zomato, reported strong Q4 FY26 results. Net profit surged 4.5 times year-on-year to ₹174 crore, driven by a significant 196.4% revenue increase to ₹17,292 crore. The company's quick commerce arm, Blinkit, saw order volumes grow over 90% year-on-year, supporting management's reaffirmed target of 60% Compound Annual Growth Rate (CAGR) for the business over the next three years. Eternal also aims to achieve $1 billion in EBITDA by FY29, indicating a strong focus on balancing rapid expansion with profitability, a key consideration for investors in the competitive quick commerce sector. The company added 3,000 new stores by March, meeting its guidance, and reported 15% YoY growth in its core food delivery segment.

Strategic Pivot to Profitable Growth

This update marks Eternal's strategic shift, positioning quick commerce as the main growth engine, moving beyond its original food delivery business. The clear targets for growth (60% CAGR in quick commerce) and profitability ($1 billion EBITDA) offer investors concrete milestones. These ambitious figures, reiterated despite ongoing market competition, suggest management confidence in their strategy of expanding product offerings, growing geographically, and optimizing how they acquire customers. The success of these initiatives will be vital for sustained profitability.

Background: Zomato's Blinkit Acquisition and Name Change

Eternal Ltd, previously Zomato, acquired Blinkit (formerly Grofers) in June 2022 for ₹4,447 crore in an all-stock deal, marking its decisive entry into quick commerce. The company officially changed its name from Zomato Limited to Eternal Ltd in March 2025, showing its evolving role as a diversified consumer internet group. Blinkit's shift to an inventory-led model in Q1 FY26 significantly boosted its reported revenue figures, although analysts point to the accounting impact. The company has also raised significant capital, including an ₹8,500 crore QIP and an ₹450 crore infusion into Blinkit in March 2026, highlighting how capital-intensive its expansion plans are.

Key Strategy Adjustments

• Accelerated Quick Commerce Focus: Blinkit is set to be the primary driver of growth, targeting 60% CAGR over the next three years.
• Profitability Milestone: The $1 billion EBITDA target by FY29 signals a strong intent to achieve sustainable profitability.
• Strategic Expansion: Growth will be pursued through expanding product assortment and diversifying geographically, particularly into non-metro areas.
• Optimized Customer Acquisition: The company plans to leverage market conditions to improve customer acquisition rates and manage costs effectively.
• Balancing Growth & Profit: Eternal aims to adhere to principles of healthy business growth, not just market share, reinvesting where ROI is good.

Market Challenges and Competition

Intense competition in both food delivery and quick commerce markets poses a risk to margins and may require strategic moves. The company acknowledged challenges in maintaining pricing discipline amid widespread discounting in quick commerce. Market dynamics, including competitor actions and macroeconomic factors, can affect growth paths and demand strategic adjustments. A slight dip in customer retention was noted, partly attributed to the frequency of new customer acquisitions.

Competitive Landscape

Eternal's Blinkit faces stiff competition from Swiggy's Instamart and Zepto in the quick commerce space. While Blinkit is projected to hold a dominant 60% market share by 2026, Instamart (27% by 2031) and Zepto (21% by 2031) are significant players vying for market share. Blinkit leads in dark store count and geographic reach, while Zepto is known for its speed and higher average order value. Swiggy Instamart offers wider city coverage and leverages cross-selling with its food delivery business.

Looking Ahead: Key Metrics to Watch

• Execution of 60% CAGR Target: Monitor Blinkit's actual growth trajectory against this key metric.
• EBITDA Progression: Track the company's progress towards the $1 billion EBITDA goal by FY29, particularly margin expansion in Blinkit.
• Competitive Landscape: Observe competitor strategies, discounting practices, and market share shifts.
• Customer Retention: Monitor trends in customer order frequency and loyalty.
• Geographic Expansion: Assess the success of diversification into non-metro areas.
• Operational Efficiencies: Watch for improvements in customer acquisition costs and store-level profitability.