Eternal, the parent company of Zomato and Blinkit, reported a 268% year-on-year rise in Q1 FY27 net profit to ₹92 crore. Revenue climbed 182% to ₹20,211 crore, fueled by the rapid expansion of its quick-commerce arm. While profits grew annually, they dipped sequentially, with management signaling a continued focus on market share over short-term margins.
Detailed Coverage
Eternal, the conglomerate behind platforms like Zomato and Blinkit, has reported its financial results for the quarter ending June 30, 2026. The company posted a consolidated net profit of ₹92 crore, a significant 268% increase compared to the ₹25 crore recorded in the same quarter last year. Despite this annual jump, the company saw a 47% sequential decline from the ₹174 crore profit reported in the previous quarter ending March 2026.
Quick-Commerce Driving Revenue Growth
Revenue from operations reached ₹20,211 crore, representing a 182% surge from the ₹7,167 crore reported a year ago. A major driver of this revenue growth is the inventory-led model adopted by Blinkit, which accounts for the total value of goods sold as revenue. Blinkit contributed ₹15,664 crore to the total operating revenue, accounting for approximately 77.5% of the company's business. In contrast, the quick-commerce division reported a revenue of ₹2,400 crore in the same period last year, highlighting the massive scale-up in its operations.
The core food delivery business also showed steady performance, with revenue growing 37% year-on-year to ₹3,100 crore. Meanwhile, the 'District' segment, which handles the company's going-out business, recorded revenue of ₹318 crore, a 54% increase from the previous year. However, the B2B restaurant supply business, Hyperpure, reported revenue of ₹1,034 crore, reflecting a 55% decrease compared to the ₹2,295 crore reported in the same period a year ago.
Expenses and Strategic Spending
Total expenditures for the quarter were ₹20,314 crore. A significant portion of this cost, ₹12,860 crore, was attributed to the purchase of stock-in-trade, which is directly linked to Blinkit's inventory model. Delivery and related costs increased by 69% to ₹3,150 crore, while advertising and promotional spending rose 41% to ₹945 crore. The company also reported an increase in employee benefit expenses, which grew 29% to ₹1,068 crore.
Management, led by founder Deepinder Goyal, has reiterated a long-term strategy of prioritizing market expansion over immediate profitability. The company has expressed a willingness to increase spending on growth initiatives if needed. This strategy is being deployed amid competition in the quick-commerce and delivery space. To capture a wider customer base, Eternal is also focusing on its 'Bistro' initiative, which aims to provide more affordable food delivery options.
Investors looking ahead may want to track the performance of the quick-commerce segment as it continues to scale, as well as the sustainability of the profit margins for the food delivery business. Additionally, the ability of the company to manage its inventory-related costs and maintain its market position against competitors will be key factors to monitor in future quarters.