Zomato Parent Eternal's Profit Tanks 90% as Expenses Take a Big Bite Eternal's expenses stood at INR 7,433 crore, up by 77 per cent. The company's revenue from operations for Q1 of FY26 stood at INR 7,167 crore, up by 70.4 per cent from INR 4,206 crore in the corresponding quarter.

Zomato's parent company, Eternal, on Monday, reported a steep 90 per cent fall in its net profit, a YoY INR 25 crore compared to the INR 253 crore reported a year ago for the same period. The company's revenue from operations for Q1 of FY26 stood at INR 7,167 crore, up by 70.4 per cent from INR 4,206 crore in the corresponding quarter.

Eternal's expenses stood at INR 7,433 crore, up by 77 per cent.

Eternal's quick-commerce company Blinkit's revenue stood at INR 2,400 crore for Q1, recording an uptick of nearly 154 per cent from INR 942 crore announced in Q1FY25. The food delivery arm's revenue saw a rise of 16 per cent to INR 2,261 crore. Eternal's B2B business, Hyperpure's Revenue grew 89 per cent YoY (25 per cent QoQ).

Eternal has also said that it will transition its quick commerce business from a marketplace model to inventory ownership over the next 2-3 quarters.

"Our teams are well prepared for this transition, and we expect to start working with brands directly without any disruption to the business. Control over inventory gives us more leverage on margins in the business, plus allows us to push harder and faster on assortment 6 expansion. We expect to see about a 1 percentage point margin expansion over time as a result of this transition. As an outcome of this transition, we will also see shrinkage in Hyperpure's non-restaurant business, as most of the B2B buyers in that business were sellers on our quick commerce platform," said Akshant Goyal, CFO, Zomato.

Eternal has also announced that its board has approved the incorporation process of Blinkit Foods, its wholly-owned subsidiary, with a proposed share capital of INR 10 lakh. The company said, "Blinkit Foods is proposed to be incorporated as a wholly owned subsidiary and would inter alia engage in the business of providing food services (including innovation, preparation, sourcing, sale and delivery of food to customers)."

Earlier this month, the company announced the appointment of Aditya Mangla as the CEO of the Food ordering and delivery business and SMP at Eternal.

Deepinder Goyal, Founder, Managing Director & Chief Executive Officer, Eternal, said that the decision comes from its operational model that they call "Rotational Leadership," where the CEO role of each business is time-bound, typically for a two-year term.

"Rotational Leadership is not about changing faces; it changes how decisions get made. Leaders move with urgency, knowing their window to create impact is finite. It reduces complacency, accelerates execution, and allows more diverse leadership styles to emerge. Over time, it also builds organisational muscle memory, as teams learn to operate independently of any one person, making us more resilient and adaptable as we grow," said Goyal.

Eternal's shares on Monday were listed at INR 271.20, on BSE, up by 5.38 per cent despite the announcement of a steep decline in profits.