Eternal’s Profit Jumps Nearly 4X, But Blinkit Investments and Competition Pressure Margins

Eternal, the parent company of food delivery platform Zomato and quick-commerce business Blinkit, reported a nearly four-fold increase in consolidated net profit for the quarter ended June 30, although earnings fell short of market expectations as investments in Blinkit and rising competition continued to impact profitability.

The company posted a consolidated net profit of Rs 92 crore during the quarter, compared with Rs 25 crore in the same period last year. However, the figure remained below analysts’ estimates of Rs 258 crore.

Revenue for the quarter increased more than 2.5 times year-on-year to Rs 20,211 crore, slightly below analysts’ projections of Rs 20,439 crore. Following the earnings announcement, Eternal's shares witnessed volatility, falling as much as 3.82 percent before recovering to trade 0.54 percent higher later in the day.

The results highlight the ongoing balancing act between growth and profitability as food delivery and quick-commerce platforms continue investing heavily in market expansion. While the food delivery business benefited from healthy order volumes, advertising income, platform fee monetisation and operational efficiencies, Blinkit remained a major focus area for growth investments.

The company continues to operate in an increasingly competitive quick-commerce market, where players including Swiggy Instamart, Zepto, Flipkart Minutes and Amazon Now are accelerating investments to expand market share.

Eternal's food delivery segment to benefit from steady consumer demand, while Blinkit was anticipated to maintain growth through higher order volumes and continued expansion of its dark-store network despite competitive pressures.

The results underscore the broader trend across India's food delivery and quick-commerce sectors, where companies are prioritising customer acquisition, network expansion and faster delivery capabilities while investors closely monitor the path toward sustainable profitability.