Eternal, a prominent player in the food delivery sector, has recently unveiled its financial results for the fourth quarter of fiscal year 2025. The company, previously branded as Zomato, experienced a staggering 77.7% decline in consolidated net profit, reporting ₹39 crore compared to ₹175 crore during the same period last year. However, there’s a silver lining as revenue from operations surged to ₹5,833 crore, marking an impressive 63.8% increase from ₹3,562 crore in Q4 of the previous fiscal year.

Q4 Performance Highlights

• Profit After Tax (PAT): Sequentially, the net profit saw a 34% drop from ₹59 crore reported in Q3 FY25.
• Revenue Growth: The topline grew 8% compared to the ₹5,405 crore reported in the December quarter.

The sharp decline in profit is attributed to substantial investments aimed at bolstering Eternal’s quick commerce division, Blinkit, along with escalating infrastructure costs across various operations.

Key Insights from Leadership

Akshant Goyal, the Chief Financial Officer, disclosed in an exchange filing that the consolidated Adjusted EBITDA fell by 15% year-on-year, totaling ₹165 crore for Q4 FY25. This dip primarily resulted from heightened investments in expanding their quick commerce store network. However, there was a positive note with an improvement in the Adjusted EBITDA margin for food delivery, which rose to 5.2%, up from 3.8% in the previous year.

Albinder Dhindsa, CEO of Blinkit, highlighted that the company achieved a record net addition of 294 stores in Q4 FY25. This figure marks the highest net store addition in a single quarter, leading to approximately 40% of the overall network of 1,301 stores being newly established in the last two quarters. Additionally, the company expanded its warehousing capacity by 1 million sq ft to support this growth.

Growth in Gross Order Value

Eternal’s gross order value (GOV) for food delivery witnessed a 16% increase year-on-year. The company’s filings also revealed that around one-third of the GOV from outings originates from the District app. Furthermore, the adjusted EBITDA showed an improvement of 110 basis points compared to the previous year.

Stock Market Update

In market activity, Eternal’s share price rose by 0.58%, closing at ₹232.50 on the Bombay Stock Exchange (BSE). While the corporate entity has transitioned to the name Eternal, the food delivery app and brand Zomato will continue to operate under its current name.

Conclusion

As Eternal navigates through its financial landscape, the focus remains on strategic investments in growth areas, particularly quick commerce. The ongoing expansion efforts and adjustments in service offerings indicate a proactive approach in a competitive market. For investors and stakeholders, monitoring these developments will be crucial for understanding the company’s trajectory in the coming quarters.