Eternal’s Q1 FY26 Report Is Out – And While Revenue Soars, Profits Take a 90% Plunge India’s quick commerce and foodtech giant Eternal — formerly known as Zomato
India’s quick commerce and foodtech giant Eternal — formerly known as Zomato — just dropped its Q1 FY26 financial results, and they’re sending shockwaves through the market.
On the surface, things look stellar: revenue has skyrocketed by 70%, reaching a jaw-dropping Rs 7,167 crore, compared to Rs 4,206 crore during the same quarter last year (Q1 FY25).
But dig deeper, and the story takes a wild turn: profits have crashed by a staggering 90%.
Yes, you read that right — ninety percent.
So, how can a company boost its revenue so dramatically and still suffer a near-total wipeout in profits? Here’s everything you need to know.
Eternal’s revenue from operations hit Rs 7,167 crore, marking a massive 70% year-on-year growth. This leap reflects continued user demand in two core areas:
This puts Eternal firmly ahead in India’s hyper-competitive quick-commerce race, especially against players like Swiggy Instamart, Zepto, and BigBasket Now.
But here’s the catch…
Despite revenue scaling up, Eternal’s net profit plummeted by 90%, signaling severe cost pressures and strategic spending gone awry.
Analysts are pointing to a cocktail of financial challenges, including:
Simply put, Eternal spent a fortune to stay ahead — and while the top line soared, the bottom line got burned.
This isn’t the first time high-growth consumer tech platforms have run into this “growth vs profit” dilemma. But the magnitude of this profit drop has left many industry observers surprised.
Here are three key reasons that likely explain the nosedive:
Blinkit — Eternal’s crown jewel in the quick-commerce space — is aggressively expanding. But speed comes at a price. Operating micro-warehouses, optimizing dark stores, and maintaining 10-minute delivery SLAs across cities requires intense capital investment.
It’s a long game, and Eternal seems willing to bleed now in hopes of locking in long-term user loyalty.
While the market cooled in 2023 and early 2024, Q1 FY26 saw a resurgence of consumer offers, cashbacks, and flat discounts across the board. Eternal clearly joined the promo war — and their P&L reflects it.
With Swiggy, Zepto, and Amazon Fresh turning up the heat, Eternal likely burned through its cash cushion trying to hold the front lines.
When you’re the leader, you’re expected to scale fast, invest ahead of the curve, and out-innovate competitors. Eternal’s leadership position means higher platform upkeep, more R&D spend, and constant pressure to innovate — whether it’s drone delivery pilots, AI-driven ordering, or zero-emission logistics.
Despite the profit drop, Eternal’s stock remains resilient thanks to strong topline growth and long-term optimism. Investors seem to believe that the temporary hit to profitability is part of a bigger growth strategy.
But critics are warning that the profitability narrative Zomato had been building since FY24 is now under serious strain.
The question is: How long can Eternal afford to burn before the market starts demanding discipline over dominance?
The management team at Eternal has so far remained tight-lipped about exact causes of the profit fall. However, in earlier statements, CEO Shantanu Singh hinted at a “build aggressively, optimize later” philosophy — especially in the fast-moving quick-commerce division.
Will that strategy hold up?
Industry insiders expect a course correction in Q2 and Q3, with a shift toward:
Eternal has proven it can scale. Now, it needs to scale smart.
Eternal’s performance raises larger questions:
Eternal is the test case for all of the above. If it can turn revenue growth into sustained profits, it will prove that fast delivery can also be financially viable — not just flashy.
Eternal’s Q1 FY26 report is a story of ambitious growth and brutal costs. While the company continues to dominate India’s food and grocery delivery landscape, its profits are telling a much tougher story.
Investors are watching. Competitors are circling. And the public? They’re still ordering dinner and detergent in 10 minutes flat.
Eternal may have won the quick-commerce race, but now it must prove it can run the marathon of sustainable profitability.
