Restaurant India News: Eternal Profit Jumps 73 Percent on Quick Commerce Push and Leadership Shift

Eternal, the parent company of food delivery platform Zomato and quick commerce business Blinkit, reported a 73 percent year-on-year rise in consolidated net profit to Rs 102 crore for the quarter ended Wednesday. Revenue from operations increased sharply by 201 percent year-on-year to Rs 16,315 crore, supported by strong performance across its core verticals and an accounting change in the quick commerce business.

The company also informed stock exchanges of a major leadership transition. Founder Deepinder Goyal has resigned as Managing Director and Chief Executive Officer with effect from February 1. He will continue on the board as Vice Chairman and Director. Albinder Singh Dhindsa, currently Chief Executive Officer of Blinkit, will take over as Group Chief Executive Officer of Eternal.

Goyal said he has increasingly been drawn to ideas that require higher-risk exploration and experimentation. “These are the kinds of ideas that are better pursued outside a public company like Eternal.” Under the new structure, Dhindsa will be responsible for day-to-day execution, operating priorities, and business decisions, while Goyal will continue to focus on long-term strategy, culture, leadership development, and ethics and governance.

Eternal stated that the sharp revenue growth was largely driven by a shift in accounting for its quick commerce business, where revenue now reflects the full value of goods sold rather than only marketplace commissions. On a like-for-like basis, revenue growth for the quarter stood at 64 percent year-on-year. Consolidated EBITDA rose 28 percent year-on-year to Rs 364 crore and increased 63 percent quarter-on-quarter.

In the food delivery segment, adjusted revenue increased 26 percent year-on-year to Rs 2,413 crore. Net order value grew 17 percent year-on-year, accelerating from 13.8 percent growth in the previous quarter. This marked the second consecutive quarter of acceleration after a low of 13.1 percent in Q1FY26. Gross order value growth for the quarter was reported at 21 percent year-on-year. The segment’s adjusted EBITDA margin reached an all-time high of 5.4 percent of net order value, with absolute adjusted EBITDA at Rs 531 crore, up 26 percent year-on-year and 6 percent quarter-on-quarter.

Blinkit continued to drive growth in the quick commerce segment, with net order value increasing 121 percent year-on-year, despite GST-related changes and seasonal factors. Like-for-like net order value growth was higher at 130 percent year-on-year. During the quarter, the company added 211 net new stores, taking the total store count to 2,027, slightly below its guidance of 2,100 stores.

For the first time on a quarterly basis, the quick commerce business reported a positive adjusted EBITDA margin, posting an adjusted EBITDA profit of Rs 4 crore, compared with a loss of Rs 156 crore in the previous quarter. On competition, Dhindsa said the company remains cautious and has not seen any material impact so far from increased competitive intensity on customer behaviour, business quality, or net order value market share. However, Eternal noted that a further rise in competition could require strategic responses that may impact margins.

The going-out business reported net order value growth of 20 percent year-on-year, while its adjusted EBITDA margin declined to minus 4.7 percent, resulting in an adjusted EBITDA loss of Rs 121 crore. The decline was attributed to continued investments in category development. Hyperpure, the restaurant supply arm, recorded steady growth, with revenue rising 33 percent year-on-year and 7 percent quarter-on-quarter. The segment achieved a positive adjusted EBITDA margin for the first time, delivering a profit of Rs 1 crore, compared with a loss of Rs 5 crore in the previous quarter.

Eternal’s overall cash balance declined to Rs 17,820 crore, primarily due to planned capital expenditure in the quick commerce business. On Wednesday, the company’s shares closed nearly 5 percent higher at Rs 282.8 on the NSE.