Eternal (parent company of Zomato), which operates food delivery platform Zomato and quick commerce arm Blinkit, on October 16 reported a 63 per cent year-on-year (YoY) drop in net profit to Rs 65 crore for the second quarter (Q2) of FY26, compared to Rs 176 crore in the same period last year. The company had posted a net profit of Rs 25 crore in the previous quarter.
The Gurugram-based company, which rebranded from Zomato to Eternal in March, saw a sharp jump in its revenue from operations, which climbed 183 per cent YoY to Rs 13,590 crore in Q2, up from Rs 4,799 crore a year earlier. In comparison, revenue for the previous quarter stood at Rs 7,167 crore.
Rising Costs and Cash Position
Total expenses for the company increased 188 per cent to Rs 13,813 crore during the September quarter, compared to Rs 4,783 crore in the same quarter last year and Rs 7,433 crore in Q1 FY26. Eternal closed the quarter with a cash balance of Rs 18,314 crore, slightly lower than Rs 18,857 crore in the previous quarter.
The company also announced the incorporation of a wholly-owned subsidiary named Eternal General Service Foundation (“Eternal Foundation”).
Food Delivery Business Performance
Adjusted revenue for Eternal’s food delivery segment rose 22 per cent YoY to Rs 2,863 crore in Q2, compared to Rs 2,340 crore in the corresponding period last year, and Rs 2,657 crore in the previous quarter. The net order value (NOV) for this business increased to Rs 9,423 crore in the September quarter from Rs 8,967 crore in Q1 FY26, and from Rs 8,281 crore in Q2 FY25.
The platform’s average monthly transacting customers (MTCs) also grew to 24.1 million in Q2, up from 22.9 million in the previous quarter and 20.7 million a year ago.
Blinkit Sees Strong Revenue Growth but Higher Losses
Blinkit, the company’s quick commerce arm, reported an EBITDA loss of Rs 156 crore in Q2 FY26, higher than the Rs 8 crore loss in the same quarter last year, owing to aggressive dark store expansion. However, the loss narrowed slightly from Rs 162 crore in Q1 FY26.
Blinkit’s revenue skyrocketed 756 per cent YoY to Rs 9,891 crore, compared to Rs 1,156 crore in Q2 FY25 and Rs 2,400 crore in the previous quarter. This surge was driven by the company’s shift to an inventory ownership model.
Its net order value (NOV) rose 137 per cent YoY to Rs 11,679 crore, from Rs 4,928 crore in Q2 FY25 and Rs 9,203 crore in the previous quarter. The average order value (AOV) remained stable sequentially at Rs 524, compared to Rs 521 in Q1 and Rs 531 in the same quarter last year.
Blinkit’s dark store count nearly doubled to 1,816 in Q2 FY26 from 791 in Q2 FY25, while monthly transacting users surged to 20.8 million, up from 8.9 million a year earlier.
Going Out Business Declines
Revenue from Eternal’s Going Out vertical fell 26 per cent YoY to Rs 189 crore in Q2, compared to Rs 154 crore in the same quarter last year and Rs 207 crore in Q1 FY26.
The net order value (NOV) for this segment stood at Rs 2,063 crore, down from Rs 2,313 crore in the previous quarter, though higher than Rs 1,562 crore in Q2 FY25. |
