Eternal (formerly Zomato) Q1 FY26: 70% revenue growth, 90% profit drop | Blinkit overtakes food delivery segment | stock rallies 10–15% 🚀
Zomato has served up some sizzling numbers in its Q1 FY25 earnings report, and the star of the show? The much-talked-about “Eternal” division.
For those new to the buzz – Zomato’s “Eternal” business covers its Hyperpure (B2B food supply chain) and the increasingly popular Zomato Gold subscription. It’s called “Eternal” because it aims to create consistent, recurring value, and the name seems to be living up to expectations.
📈 Eternal Division: The Silent Performer
In Q1 FY25, Zomato’s Eternal business surpassed expectations with strong growth:
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🔹 Revenue Growth: Eternal revenue jumped over 35% YoY, driven largely by expansion in tier-2 cities.
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🔹 Zomato Gold: Now clocking over 3.5 million paid users, contributing healthy margins.
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🔹 Hyperpure: Supplied ingredients to more than 45,000 restaurants, showing increasing acceptance among partners.
What makes this interesting is that Zomato’s Eternal division has quietly become a key pillar of long-term profitability. While food delivery remains its face, Eternal is now the financial backbone.
💡 What’s Fueling the Growth?
Experts point out that Zomato’s decision to go asset-light and digital-first for Eternal has reduced operational cost and boosted efficiency.
Meanwhile, Zomato Gold‘s revamp into a loyalty-plus program — including priority deliveries, no surge fees, and discounts on dining out — is making it a customer favorite again.
🇮🇳 Made for Bharat?
With Hyperpure expanding into smaller cities and Zomato Gold gaining traction among India’s rising middle class, the Eternal unit reflects the changing digital dining habits of “Bharat” — India beyond the metros.
📊 Overall Company Highlights (Q1 FY25):
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🟢 Total Revenue: ₹3,419 crore (up 24% YoY)
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📦 Food Delivery GMV: ₹8,318 crore
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💰 Net Profit: ₹36 crore (compared to a loss last year)
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🔻 Losses in Blinkit reduced, showing improved efficiency
🗣️ What’s Next?
Zomato plans to scale Hyperpure to 50+ cities and increase Zomato Gold’s perks to stay competitive in India’s rapidly evolving quick commerce and food delivery landscape.
🧠 What It Means for Investors
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Eternal’s shares surged ~10–15%, closing at record highs (~₹311) after the results, indicating strong investor confidence in Blinkit’s growth trajectory. Read more
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While margins have taken a hit, the pivot to quick commerce—with inventory-led expansion—is seen as the long-term play
🔎 Analyst Perspective
Brokerages including Motilal Oswal, Elara, and Nuvama have reiterated “Buy” ratings, with target prices ranging from ₹320–340, banking on Blinkit’s next-stage profitability and strong market positioning. Reference
