Ram Kumar 
eternal zomato q1 results
Formerly known as Zomato, Eternal reports sharp dip in profit amid aggressive expansion and operational scale-up
India’s leading food delivery and dining platform Eternal Ltd. (previously Zomato) announced its financial results for the first quarter of FY26, revealing a significant 90% year-on-year (YoY) decline in net profit, even as its revenue soared over 70%. The figures point toward a phase of rapid growth backed by strategic investments and operational expansion albeit at the cost of short-term profitability.
Net Profit Plummets to ₹25 Crore in Q1FY26
Eternal reported a consolidated net profit of ₹25 crore for the quarter ending June 30, 2025, marking a sharp decline from ₹253 crore reported in the same quarter last year. The drop in profitability comes amidst rising costs related to delivery operations, logistics, and platform development, suggesting that the company is prioritizing long-term market positioning over immediate earnings.
Revenue from Operations Sees Robust 70% YoY Growth
Despite the dip in profits, Eternal’s revenue stood strong at ₹7,167 crore, a 70.4% increase compared to ₹4,206 crore in Q1FY25. This substantial rise reflects strong order volumes, higher user acquisition, and a growing presence in Tier-II and Tier-III cities. The company’s diversified services including food delivery, quick commerce, and dine-in continue to contribute to its top-line growth.
Sequential Comparison: Mixed Performance
Compared to the previous quarter (Q4FY25), Eternal’s profit after tax fell 36%, down from ₹39 crore. However, revenue showed sequential growth of nearly 23%, up from ₹5,833 crore reported in the March quarter. This indicates that while demand remains strong, the company is still balancing margins in the face of rising operational expenditure.
Strategic Investments May Impact Near-Term Profits
Analysts believe Eternal is deliberately reinvesting earnings to deepen its market moat. Initiatives such as expanding delivery reach, enhancing technology infrastructure, and building a stronger supply chain ecosystem are likely contributors to the higher cost base seen this quarter.
Disclaimer: This article is based on publicly available financial disclosures and does not constitute investment advice. Readers are advised to consult certified financial professionals before making investment decisions.
