Eternal’s stock rise 10%, And his Q1 result Zomato’s parent reports a steep 90% YoY decline in earnings, although turnover surged 70%.
Recently, there was a stir in the Indian stock market when the shares of Zomato’s parent company Eternal rose by 10%. In fact, the company’s first quarter 2025 results were better than expected, which increased the confidence of investors. But now the question is – will it be right to invest in Eternal even after this rise? Let’s understand this in a little more detail.
Eternal (Zomato), a prominent player in the food delivery and quick commerce industry, announced its first-quarter results for FY2026 on Monday, July 21. The company, led by Deepinder Goyal, reported a sharp decline of nearly 90% in its net profit (PAT) compared to the same quarter last year. However, despite the fall in profits, Eternal’s revenue saw an impressive year-on-year growth of 70% during the same period.
Eternal’s stock, the parent company of Zomato, continued their upward momentum on Tuesday, rallying by 10% to close at ₹298.85, following the release of its June quarter earnings. Just a day earlier, on Monday, the stock had already gained around 7% during the afternoon session, shortly after the company announced its quarterly results.
In Monday’s trading session, Eternal’s stock ended over 7% higher at ₹276.50, despite the company reporting a steep 90% drop in net profit for the quarter.
Commenting on the surge, Sugandha Sachdeva, founder of SS Wealthstreet, attributed the rise primarily to strong growth in operating revenue.
Eternal’s stock is largely driven by a robust 70% year-on-year increase in the company’s operational revenue,” she explained, noting that Eternal’s revenue climbed from ₹4,206 crore in Q1 FY 25 to ₹7,167 crore in Q1 FY26.
Previous year of Eternal’s stock.
According to BSE data, Eternal’s stock price has increased by about 16% in the last three months. At the same time, during the last six months, this stock has given a gain of about 26%.
If we look at the last two years, this stock has given great returns to investors – an increase of about 238%, due to which the investors’ money has more than doubled.
According to an official statement from the CEO of Zomato :-
Q1FY26 Report Highlights
Our Q1FY26 report is now available: http://bit.ly/3ISZNxA
Overall Performance
- Consolidated Adjusted Revenue surged by 67% year-over-year (YoY) and 22% quarter-over-quarter (QoQ), reaching INR 7,563 crore.
B2C Businesses: Net Order Value (NOV)
Our B2C businesses (@zomato, @letsblinkit, @lifeindistrict) saw their Net Order Value grow by 55% YoY (16% QoQ) to INR 20,183 crore. These businesses now generate nearly $10 billion in annualized NOV, with quick commerce contributing almost half, making it our largest B2C segment.
Segment-wise Performance
- Zomato (Food Delivery): NOV increased by 13% YoY (9% QoQ), impacted by continued softness in demand.
- Blinkit: NOV grew significantly by 127% YoY (25% QoQ) to INR 9,203 crore. Profitability improved, with margins moving from -2.4% of NOV in Q4FY25 to -1.8%, despite ongoing investments in new store roll-outs and seasonal factors. We added 243 net new stores in Q1FY26 and are on track to reach 2,000 stores by December 2025.
- District (Going-out): This business currently has an annualized NOV of INR 8,000 crore (Q1FY26 NOV * 4), representing about 20% of the size of our food delivery and quick commerce businesses. With effective execution, this segment has the potential to scale to $3 billion in annual top-line (NOV) with $150 million of Adjusted EBITDA over the next five years.
- Hyperpure: Revenue saw an 89% YoY (25% QoQ) increase.
Greening India Initiative
In Q1FY26, we launched a pioneering agroforestry initiative. This program aims to plant over 2.5 million trees across 10,000 acres of farmland in partnership with thousands of farmers during FY26. Once mature, these trees are projected to remove 1.5 million tonnes of CO2 over the next 30 years.
Disclaimer: The investment tips and opinions given here are the personal opinions of experts. These are not the opinions of Riskydollar or its team. Riskydollar advises all readers to consult a certified financial advisor before making any investment.
