Newsletter
Eternal, the parent company of Zomato and Blinkit, missed profit expectations, but its strong revenue growth stole the spotlight.
Note: the stock however slipped as food delivery growth slowed to 14%, below previous levels.
In simple terms, Zomato is earning slightly more per order because discounts have reduced, but overall order growth has cooled.
By the numbers:
- Net profit down 63% YoY at ₹65 cr vs ₹176 cr
- Revenue up 183% YoY at ₹13,590 cr vs ₹4,799 cr (YoY)
- Food ordering revenue grew to ₹2,485 cr from ₹2,012 crore from last year
- Quick commerce revenue up 755% YoY at ₹9,891 cr vs ₹1,156 cr YoY
Store expansion: the company said it has maintained a steady pace of net store additions over the past few quarters and aims to reach 3,000 stores by March 2027.
What didn’t work: growth recovery has been slower than expected, with the company seeing a more gradual pickup than anticipated.
Near-term momentum remains under pressure due to soft discretionary spending, the rapid rise of quick commerce, and unfavorable weather conditions like extreme heat and prolonged rains.
