Eternal’s Profit Drops 77% Despite 63% Revenue Growth in Q4 FY25

Eternal’s Profit Drops 77% Despite 63% Revenue Growth in Q4 FY25

Food delivery and quick commerce giant Eternal—formerly known as Zomato—reported a steep 77% year-on-year decline in net profit to ₹39 crore for the quarter ending March 31, 2025, compared to ₹175 crore in the same period last year. This marks the second consecutive quarter of declining profitability, even as the company posted a robust 63% surge in consolidated revenue, reaching ₹5,833 crore.

Revenue Up, Profit Down

Eternal’s topline expansion has been driven by significant growth across its business segments: Hyperpure, Blinkit, and the going-out category. However, aggressive expansion and rising customer acquisition costs—particularly in the hyper-competitive quick commerce sector—have weighed heavily on the company’s margins.

Blinkit, its quick commerce arm, more than doubled its revenue to ₹1,709 crore, yet posted widened losses of ₹82 crore in Q4. The segment continues to burn cash due to deep discounting, logistics investments, and competition from players like Zepto and traditional e-retail giants such as Flipkart and Amazon.

Segment-Wise Performance

Eternal operates four major verticals:

• Zomato (food delivery): Revenue reached ₹2,054 crore, an 18% YoY increase, but a marginal sequential decline was noted due to softening urban demand.

• Blinkit (quick commerce): Revenue soared, but so did losses due to the high cost of scaling operations.

• Hyperpure (B2B restaurant supplies): This segment recorded strong growth, with revenue nearly doubling to ₹1,804 crore from ₹951 crore a year earlier.

• District (going-out experiences): Revenue for this segment more than doubled to ₹229 crore YoY, though it fell 11% from the previous quarter.

Market and Regulatory Challenges

Eternal has also been grappling with external headwinds. Its share price has dropped nearly 16% since the beginning of 2025, despite being added to the Nifty 50 index in the fourth quarter.

The broader food delivery market is seeing growing competition from new entrants like Rapido and Zepto Café, while regulatory scrutiny is intensifying. Eternal and rival Swiggy are currently under investigation by the Competition Commission of India (CCI) over alleged anti-competitive behavior—particularly around private-label food offerings like Blinkit Bistro and Zomato Everyday.

Strategic Moves: From Commerce to SaaS

To diversify its portfolio, Eternal recently entered the B2B SaaS space with the launch of Nugget, a no-code, AI-driven customer support platform. Capable of autonomously resolving up to 80% of customer queries, Nugget is already handling over 15 million support interactions across Eternal’s brands, resulting in substantial operational efficiencies.

Additionally, the company is working to achieve Indian-Owned-and-Controlled Company (IOCC) status for Blinkit. This move would allow the business to adopt an inventory-led model, which could help improve profit margins in the capital-intensive quick commerce vertical.

The Road Ahead

Despite its revenue momentum, Eternal faces mounting pressure on multiple fronts—from operational losses in key segments to intensifying market competition and regulatory scrutiny. The company's ability to balance growth with sustainable profitability will be crucial in the quarters ahead.