Eternal Q2 Results: Food delivery company Eternal, formerly known as Zomato, on Thursday reported a 63% fall in the second-quarter profit (July-September) at ₹65 crore as compared to ₹176 a year ago. The net profit, however, was higher compared to previous quarter’s (April-June) ₹25 crore.
The revenue from operations in Q2FY26 stood at ₹13,590 crore, which was up by 183% over ₹4,799 crore in the corresponding quarter of the previous financial year. On a sequential basis, the profit after tax (PAT) rose by 160% reported in Q1FY26. Meanwhile, the topline was lower by 90% on a sequential basis versus ₹7,167 crore reported in the June quarter.
The company reported total expenditures of ₹13,813 crore for the quarter (Q2FY26), compared to ₹4,783 crore during the same period last year (Q2FY25).
Food delivery
The growth of food delivery has stabilized and is beginning to recover, showing a 14% year-over-year increase in NOV, while profitability improved quarter-over-quarter, reaching a record high of 5.3% of NOV, up from 5% in the first quarter of FY26, as reported in a company filing with the exchanges.
Deepinder Goyal, the founder and CEO of Eternal, stated that the food delivery NOV aligned with the company’s projections, and the year-over-year growth rate of NOV increased in Q2FY26 after experiencing a consistent decline over the past five quarters.
“Having said that, the recovery in growth has been slower than expected, and we only expect a slow uptick in growth rate in the near term. While we continue to work on inputs to the business (making restaurant food more accessible and affordable for customers), we are also constantly fighting multiple headwinds, including soft discretionary consumption in general in India, the impact of quick commerce growth and increasingly volatile weather (extreme heat, extended rains), which continue to weigh on near-term growth,” Goyal said.
Quick commerce business
The company in an exchange filing stated that the company’s Quick commerce business net order value (NOV) growth surged to 137% year-over-year (27% quarter-over-quarter), marking its highest level in the past 10 quarters. The expansion of the network persisted with the addition of 272 new stores, along with a substantial influx of new customers.
“Quick commerce NOV growth accelerated to 137% YoY (27% QoQ) – its highest in the last ten quarters. Network expansion continued with 272 net new stores added taking the total store count to 1,816 stores as at the end of the quarter.
Adjusted EBITDA margin (as a % of NOV) continued to improve QoQ to -1.3% from -1.8% in Q1FY26. The pace of margin improvement was slower than what we had anticipated at the beginning of the quarter and that is because of additional investments in market share growth,” said Eternal Founder Deepinder Goyal.
Blinkit
Blinkit has managed to decrease its quarterly losses to ₹156 crore, compared to ₹162 crore in the first quarter of FY26, with the adjusted EBITDA margin rising from -1.8% to -1.3% of NOV.
The growth in food delivery has hit its lowest point but is now on the mend, showing a 14% year-on-year increase in NOV, while profitability has improved quarter-on-quarter to a record high of 5.3% of NOV, up from 5% in Q1 FY26, as stated in a company filing with the exchanges.
“We have been maintaining our quarterly rate of net store additions consistently for the last few quarters, and given what we know today, we think we should be able to get to 3,000 stores by Mar 2027,” said Albinder Dhindsa, Founder of Blinkit.
Eternal share price today
Eternal share price today closed nearly 2% down at ₹348.40 apiece on the BSE, the stock touched a 52-week high of ₹368.40 per share on the BSE. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Eternal share price, after making a new high around 368 today, prices have sharply dip losing around 4% and breaking its 20dema, the short term momentum may remain under pressure with profit booking and 320 levels may be retested that would act as a buying zone. On the flip side 355 would be seen as immediate resistance.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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