How Did Eternal Deliver Record Revenue in Q1 FY27?
Eternal Ltd. (formerly Zomato) reported a strong start to FY27, posting a 3.7-fold year-on-year increase in net profit alongside record revenue, driven primarily by the rapid expansion of its quick commerce business, Blinkit.
According to the company’s consolidated financial results filed with the National Stock Exchange (NSE), revenue from operations surged to ₹20,211 crore in Q1 FY27, compared to ₹7,167 crore in the corresponding quarter last year.
The Gurugram-based company also reported a net profit of ₹92 crore, up from the previous year’s level, reflecting robust topline growth, improving operating performance, and higher non-operating income.
Blinkit Emerges as Eternal’s Largest Business
Blinkit continued to be the biggest growth engine for Eternal during the quarter.
The quick commerce platform generated ₹15,664 crore, accounting for 77.5% of the company’s total operating revenue.
The performance highlights the growing contribution of instant commerce to Eternal’s overall business as consumer demand for rapid deliveries continues to rise.
Meanwhile, the company’s core food delivery business, Zomato, reported ₹3,100 crore in revenue, registering 37% year-on-year growth from ₹2,261 crore in Q1 FY26.
Hyperpure and District Show Mixed Performance
Among the company’s other business verticals:
- Hyperpure, Eternal’s B2B supplies platform, reported ₹1,034 crore in revenue, reflecting a 55% sequential decline.
- District, the company’s going-out business, posted 54% year-on-year growth, with revenue reaching ₹318 crore.
Including revenue from other business segments and non-operating income, Eternal’s total income stood at ₹20,586 crore during the quarter.
Expenses Rise Alongside Rapid Expansion
As business volumes expanded, Eternal’s operating expenses also increased significantly.
Key expenses during Q1 FY27 included:
- Material costs: ₹12,031 crore (59% of total expenses)
- Delivery and related expenses: ₹3,150 crore (up 68.5% YoY)
- Employee benefits: ₹1,068 crore (up 29% YoY)
- Advertising and marketing: ₹945 crore (up 41% YoY)
Overall, the company’s total expenditure rose to ₹20,314 crore during the quarter.
EBITDA Improves Across Core Businesses
Eternal reported improved operating profitability across its major business segments.
- Food Delivery (Zomato): EBITDA of ₹621 crore, up over 33% year-on-year.
- Blinkit: EBITDA of ₹365 crore, compared to a loss of ₹42 crore in the year-ago quarter, marking a significant turnaround.
- District: Reported a negative EBITDA of ₹62 crore.
Blinkit’s transition into positive EBITDA represents an important milestone as the quick commerce business continues to scale rapidly.
Profit Jumps 3.7 Times
Supported by strong revenue growth and higher non-operating income, Eternal’s net profit increased 3.7 times year-on-year to ₹92 crore in Q1 FY27.
The results indicate that the company is successfully balancing aggressive expansion with improving profitability across its diversified business portfolio.
Ahead of the earnings announcement, Kotak Institutional Equities had retained its ‘Buy’ rating on Eternal, citing continued momentum in the company’s quick commerce business.
Market Performance
Following the quarterly results, Eternal’s shares closed at ₹289.50.
At the closing price, the company commanded a market capitalisation of approximately ₹2.79 lakh crore (around $29.4 billion), making it one of India’s most valuable consumer internet companies.
What’s Next for Eternal?
Eternal’s Q1 FY27 performance reinforces the company’s transformation into a diversified consumer technology platform led by Blinkit’s quick commerce growth, while maintaining steady momentum in its food delivery business.
As Blinkit continues expanding its network and improving profitability, investors will closely monitor whether Eternal can sustain its growth trajectory while strengthening margins across all business verticals.
