Eternal Ltd, formerly known as Zomato, reported a robust jump in revenue but a steep fall in quarterly profits for the three-month period ending March 31, 2025, underscoring the cost of scaling its rapid-delivery business amid rising operational expenses.
The food delivery giant posted a consolidated net profit of ₹39 crore in Q4 FY25, marking a sharp 77.7% decline from ₹175 crore in the same quarter a year earlier. On a sequential basis, profit was also down 34% from ₹59 crore reported in the December quarter.
At the same time, revenue from operations rose 63.8% year-on-year to ₹5,833 crore, up from ₹3,562 crore in Q4 FY24. Compared to the previous quarter, revenue grew 8% from ₹5,405 crore.
Blinkit Drives Growth, But At a Cost
The company attributed the profit squeeze to heightened investments in Blinkit, its quick commerce arm, and a rise in infrastructure-related costs across its ecosystem. Blinkit, which promises grocery and essentials delivery in minutes, has been a key pillar of Eternal’s strategy to diversify beyond food delivery and tap into India’s booming quick-commerce segment.
“We are consciously investing in the future of commerce,” Eternal said in a shareholder update. “The increase in expenses, particularly in building out supply chain capabilities and expanding Blinkit’s presence in key cities, is weighing on short-term profitability.”
Quick commerce — defined by delivery times of under 30 minutes — is one of the fastest-growing retail models globally. In India, the sector is expected to grow at a compound annual growth rate (CAGR) of over 50% through 2026, according to a RedSeer report.
However, industry experts caution that the path to profitability remains challenging in this high-burn business model. “Quick commerce has proven sticky in metros, but the economics need to be tightly controlled,” said Satish Mehra, a retail analyst at Technopak Advisors. “Companies like Eternal must strike a delicate balance between speed, scale, and sustainable margins.”
Revenue Momentum Reflects Broader Market Expansion
Despite the earnings dip, Eternal’s top-line performance reflects a strong demand environment. The company continues to benefit from growing consumer appetite for online ordering, both in food delivery and instant commerce.
The revenue boost was driven in part by expansion in tier-2 and tier-3 cities, improved order volumes, and increased monetization from restaurant partners and delivery charges.
Zomato’s (now Eternal’s) core food delivery business also remained profitable at the segment level, helping cushion the overall financial impact. However, infrastructure investments — including new warehousing and logistics nodes — led to higher depreciation and operational overheads in the latest quarter.
What This Means for Investors and the Market
The mixed quarterly results come amid Eternal’s broader strategic pivot. Rebranding from Zomato to Eternal earlier this year signaled the company’s intent to evolve into a multi-vertical platform spanning food, groceries, and local services.
Analysts believe the long-term outlook hinges on Blinkit’s eventual path to profitability and Eternal’s ability to monetize its growing user base. The company has over 90 million annual transacting users across platforms as of March 2025.
Shares of Eternal saw moderate volatility following the earnings announcement but remained relatively stable amid broader optimism about India’s tech sector. The stock is up over 45% in the past 12 months, driven by consistent revenue performance and market share gains.
Conclusion: High Growth, High Stakes
Eternal’s fourth-quarter results highlight the classic trade-off facing many tech-first platforms — rapid expansion versus earnings stability. While its revenue growth is among the fastest in India’s internet sector, sustaining that pace may require continued investor patience on the profit front.
The company remains well-capitalized, having raised fresh capital in early 2024, and is expected to continue aggressive investment in logistics and dark store networks through FY26.
As India’s digital consumption landscape matures, Eternal’s bet on speed and convenience could pay off — but only if it can turn scale into sustainable profits.
Last Updated on: Friday, May 2, 2025 8:10 pm by Gracy P | Published by: Gracy P on Friday, May 2, 2025 8:10 pm | News Categories: News
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