Zomato Q1 Results: Eternal Shares Jump 8% Despite 90% Drop in Profit; Blinkit Growth Surges to Boost Sentiment

Shares of Eternal Ltd (formerly Zomato Ltd) surged nearly 8% during Monday's trading session, reaching a high of Rs 276.80. The spike came despite the company reporting a steep 90% year-on-year drop in consolidated net profit for Q1 FY26, compared to the June quarter last year.

Zomato Q1 Results 2026: Net Profit Dropped 90%

Deepinder Goyal led Eternal's consolidated net profit plunged to Rs 25 crore in Q1 FY26, down from Rs 253 crore in Q1 FY25. However, the company posted a 70.4% jump in operational revenue, reaching Rs 7,167 crore, up from Rs 4,206 crore last year, primarily driven by rapid growth in its quick commerce arm, Blinkit.

The firm's B2C Net Order Value (NOV) rose 55% YoY, reaching Rs 20,183 crore, for the first time with quick commerce outpacing food delivery. On a consolidated basis, adjusted revenues surged 67% YoY to Rs 7,563 crore.

Margins Squeeze Under Investment Pressure

Profitability, however, was under pressure. Q1 adjusted EBITDA fell 42% YoY to Rs 172 crore, owing to heavy investments in Blinkit and the "going-out" vertical. Still, food delivery margins held steady at 5% of NOV, despite seasonal volatility.

Eternal's going-out vertical, now annualising at Rs 8,000 crore in NOV, is gaining momentum thanks to acquisitions in ticketing and events. The company ended Q1 FY26 with a robust cash balance of Rs 18,857 crore, providing a buffer to fuel continued expansion.

Blinkit Expands & Shifts Model

Blinkit added 243 new stores this quarter, posting a remarkable 127% YoY growth in order value. The company is moving toward an inventory-led model, which is expected to boost both margins and revenue, especially in tier-2 and smaller cities.

Eternal CEO Deepinder Goyal while addressing the press conference said, "I think the YoY growth is likely to bottom out now as we recover from the demand slowdown we started seeing in late 2024. For FY26, it looks unlikely that the business will deliver a 20 percent-plus NOV growth but we should be north of 15 per cent and hopefully trending towards 20 per cent YoY growth in FY27."