 "Eternal Q1 FY26 result: Profit falls 90% to ₹25 crore, revenue up 70%")
Eternal Ltd, the parent firm of food delivery giant Zomato, on Monday reported a steep decline in consolidated net profit for the first quarter of the financial year 2026 (Q1 FY26), coming in at ₹25 crore — down 90 per cent year-on-year (Y-o-Y) from ₹253 crore Q1 FY25. The profit also fell 36 per cent sequentially from ₹39 crore reported in the preceding quarter (Q4 FY25).
On the contrary, the company's revenue from operations for the quarter rose sharply to ₹7,167 crore, marking a 70 per cent increase from ₹4,206 crore in Q1 FY25 and a 23 per cent rise compared to ₹5,833 crore in Q4 FY25.
The stark gap in profit and revenue can be attributed to the exponential rise in the firm's total expenses. Eternal reported a total expense of ₹7,433 crore in the quarter, up 77 per cent from ₹4,203 crore in Q1 FY25. Sequentially, the expense grew 22 per cent from ₹6,104 crore in the last quarter.
Eternal's Chief Financial Officer, Akshant Goyal, stated that the profit decline was on the account of continued investment and expansion of the quick-commerce segment. The company added 243 new quick commerce stores in the quarter, with net order value (NOV) increasing 127 per cent Y-o-Y to ₹9,203 crore, the company said in a BSE filing. It added that the NOV for quick commerce surpassed the NOV for food delivery, which reported a 13 per cent Y-o-Y growth to ₹8.967 crore.
Further, on the drop in food delivery NOV growth, Chief Executive Officer Deepinder Goyal 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 per cent + NOV growth but we should be north of 15 per cent and hopefully trending towards 20 per cent Y-o-Y growth in FY27".
Shares of Eternal closed at ₹271.20 apiece on the BSE on Monday.
Eternal Q1 result highlights
- Revenue from operations: ₹7,167 crore
- Profit: ₹25 crore
- Earnings per share: ₹ 0.03 (basic and diluted)
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