Zomato Q2 Results: Eternal's Net Profit Falls 63% YoY to Rs 65 Cr, Revenue Soars 183%, Blinkit Drives Growth

Food delivery company Eternal, formerly known as Zomato, reported a sharp 63% year-on-year decline in its consolidated net profit for the second quarter (July-September) of FY26, coming in at Rs 65 crore, compared to Rs 176 crore in the same quarter last year. However, the company's net profit showed sequential improvement from Rs 25 crore in the April-June quarter.

Zomato Q2 Results 2026: Eternal's Q2 Profit Falls 63% YoY; Revenue Surges 183%

Despite the drop in profitability, Eternal's revenue from operations witnessed a massive 183% year-on-year growth, rising to Rs 13,590 crore in Q2FY26 from Rs 4,799 crore in the corresponding period of the previous fiscal. Sequentially, however, the topline declined nearly 90% from Rs 7,167 crore reported in Q1FY26.

The company attributed the sequential pressure on margins and topline to strategic investments aimed at driving long-term growth, particularly in its quick commerce arm, Blinkit.

Eternal noted that while absolute losses declined, the pace of margin improvement fell short of expectations, primarily due to aggressive spending in key areas such as marketing, store expansion, and infrastructure.

Eternal Q2 Results: EBITDA Improved

The Adjusted EBITDA margin (as a percentage of NOV) improved to -1.3% in Q2FY26, compared to -1.8% in Q1FY26, indicating a continued push toward profitability. Eternal said the slower-than-expected pace of margin improvement was the result of increased investments to gain market share, including:

Passing on operational efficiency gains to customers to reinforce Blinkit's value and reliability, especially its 10-minute delivery promise.

A fourfold year-on-year and 1.4x quarter-on-quarter increase in marketing spend aimed at acquiring new customers.

Accelerated expansion of Blinkit's store network, coupled with investments in warehousing and supply chain capacity to meet rising demand.

Blinkit's performance stood out with Network Order Volume (NOV) growth accelerating to 137% year-on-year and 27% quarter-on-quarter, marking the highest growth in the last ten quarters. The company added 272 net new stores during the quarter, expanding its total store count to 1,816 as of September 30, 2025. The quick commerce business is now targeting 2,100 stores by December 2025, revising its earlier target of 2,000 stores upward.

Albinder Dhindsa, Founder of Blinkit, acknowledged that while margin improvement lagged projections, the company remains focused on sustainable, high-quality growth over short-term profitability.

"While absolute losses decreased (in line with what we mentioned in our last letter), the reduction in loss/margin expansion was below our expectations. This was largely driven by our investments to drive higher growth and NOV market share opportunistically in the quarter," Dhindsa said.

Zomato Share Price After Eternal Results

As of 3:29 PM on October 16, shares of Eternal Ltd were trading at Rs 340.65, down Rs 13.70 or 3.87% for the day. The stock opened at Rs 356.00 and touched an intraday high of Rs 368.45, which also marks its 52-week high. The day's low stood at Rs 338.00, while the 52-week low for the stock is Rs 209.86.

"Consolidated Adjusted Revenue grew 172% YoY (85% QoQ) to INR 13,968 crore - while Adjusted EBITDA stood at INR 224 crore, up 30% QoQ. The consolidated NOV of our B2C businesses (@zomato, @letsblinkit, @lifeindistrict) grew 57% YoY (15% QoQ) to INR 23,164 crore," Eternal Founder Deepinder Goyal shared on LinkedIn.