Eternal Limited (Zomato): Revenue Surges 183% as Blinkit Overtakes Food Delivery, "Unseen" Book Chronicles Journey

Q2 Results Show Blinkit Dominance; Founder's Biography Launches

Eternal (formerly Zomato) reported Q2 FY26 results on October 16, 2025, revealing a dramatic business transformation with revenue surging 183% YoY to ₹13,590 crores, though net profit declined 63% to ₹65 crores due to aggressive Blinkit expansion. The quick commerce arm Blinkit has now eclipsed traditional food delivery in gross order value, fundamentally reshaping the company's business mix.

Simultaneously, Deepinder Goyal announced the October 31 release of "Unseen", a comprehensive book chronicling Zomato's 15-year journey written by VP of Operations Megha Vishwanath after 300+ interviews and three years shadowing the founder.

Zomato's business transformation highlighted as Blinkit quick commerce surges from Rs 4,928 Cr to Rs 11,679 Cr NOV in one year, overtaking traditional food delivery

Business Overview

Founded in 2008 as Foodiebay by Deepinder Goyal and Pankaj Chaddah, Zomato pioneered online food ordering in India and became the country's first consumer-tech unicorn to list publicly in 2021. The company rebranded to Eternal in March 2025, reflecting its expanded ecosystem beyond food delivery.

Eternal's current business portfolio includes:

• Zomato: Food delivery platform serving 24.1 million monthly transacting customers

• Blinkit: Quick commerce with 1,816 dark stores delivering in 10-15 minutes

• Hyperpure: B2B supplies for restaurants

• District (Going Out): Dining reservations, events, and movie ticketing

• Strategic Investments: Portfolio approach to food and consumer ecosystem

Financial Analysis

Eternal demonstrates explosive topline growth driven by Blinkit's transformation, though profitability remains pressured by expansion investments:

Q2 FY26 vs Q2 FY25:

• Revenue: ₹13,590 crores vs ₹4,799 crores (183% YoY)

• Net Profit: ₹65 crores vs ₹176 crores (63% decline)

• Total Expenses: ₹13,813 crores vs ₹4,783 crores (189% YoY)

• Cash Balance: ₹18,314 crores

Sequential Performance (Q2 vs Q1 FY26):

• Revenue up 90% QoQ from ₹7,167 crores

• Net profit up 160% QoQ from ₹25 crores

• Showing strong quarterly momentum despite YoY profit decline

Segment-wise Performance:

Blinkit Quick Commerce:

• NOV: ₹11,679 crores (137% YoY growth, 27% QoQ growth)

• Revenue: ₹9,891 crores (756% YoY, primarily due to inventory model shift)

• EBITDA Loss: ₹156 crores (improved from ₹162 crores in Q1)

• EBITDA Margin: -1.3% of NOV (improved from -1.8% in Q1)

• Store Count: 1,816 (272 net additions in Q2)

• MTUs: 20.8 million (vs 8.9 million in Q2 FY25)

• AOV: ₹524 (stable QoQ)

Food Delivery (Zomato):

• NOV: ₹9,423 crores (14% YoY growth after five quarters of decline)

• Adjusted Revenue: ₹2,863 crores (22% YoY)

• EBITDA Margin: 5.3% of NOV (all-time high, up from 5% in Q1)

• MTCs: 24.1 million (vs 20.7 million in Q2 FY25)

Going Out (District):

• NOV: ₹2,063 crores (32% YoY)

• Margin challenges persist due to ongoing investments

Hyperpure:

• Revenue growth: 42% YoY

• EBITDA loss narrowing with steady margin improvement

Strategic Transformation

Blinkit's Inventory Model Shift:
The quick commerce business transitioned from marketplace to inventory-ownership model effective September 1, 2025. As of Q2, about 80% of NOV operates on own inventory, expected to reach steady-state of 90% in Q3.

This shift fundamentally changes revenue recognition—Blinkit now books full product value rather than just commission—explaining the 756% YoY revenue surge while like-for-like growth was 65% YoY.

Competitive Positioning:

• Blinkit competes fiercely with Swiggy Instamart, Zepto, and BigBasket in India's booming quick commerce market

• Network expansion of 272 stores in Q2 demonstrates aggressive market share pursuit

• Higher marketing spend to acquire customers impacted Q2 margins

Management Commentary and Outlook

Food Delivery Concerns:
Founder Deepinder Goyal acknowledged slower-than-expected recovery, citing multiple headwinds:

• Soft discretionary consumption in India

• Impact of quick commerce growth cannibalizing restaurant orders

• Volatile weather patterns (extreme heat, extended rains)

Management expects "slow uptick in growth rate in the near term" for food delivery NOV.

Blinkit Investment Thesis:
CFO Albinder Dhindsa defended the slower-than-expected margin improvement, emphasizing:

• Long-term focus on high-quality sustainable growth over short-term margins

• Strong balance sheet enabling strategic investments

• Passing efficiency gains to customers to drive adoption

• Building capacity through warehousing and supply chain expansion

"Unseen" Book Launch

The upcoming book by Megha Vishwanath provides rare insider perspective on Zomato's evolution from takeout menus startup to publicly-listed tech giant. Key themes include:

• Cash crunch crises that forced discipline

• Midnight fundraising calls during pandemic to raise $5 million emergency capital

• High-stakes Uber Eats India acquisition

• Rollercoaster Blinkit deal with drawn-out negotiations and investor doubts

• Pre-IPO years testing conviction and culture

• Deepinder Goyal's personal journey building, breaking, and rebuilding in public view

The 312-page book priced at ₹799 launches October 31, 2025, and is available for pre-order.

Market Response and Challenges

Eternal shares exhibited high volatility following results, initially surging 4% to lifetime high of ₹368.45 before declining 8% to close at ₹340.50, extending losses to second day on October 17.

Brokerage reactions were mixed:

• HSBC: Maintained "buy" with ₹390 target, but disappointed with Blinkit margins due to heightened marketing and expansion costs

• Emkay: Raised target to ₹430 from ₹330 (buy rating), but termed 14% food delivery growth "disappointing"

• Nuvama: Cut FY26 EPS estimate by 57% due to lower margin expectations, but raised revenue estimates by 22% and 38% for FY26/FY27