Eternal reports rs 65 crore net profit in Q2, quick commerce drives revenue surge

Food delivery and quick commerce company Eternal, which owns the Zomato and Blinkit brands, on Thursday reported a consolidated net profit of Rs 65 crore for the second quarter ended September. The quick commerce segment emerged as a key contributor to the company’s revenue growth.

The company, which rebranded as Eternal in March 2025, had posted a net profit of Rs 176 crore in the same quarter last year. In a regulatory filing, Eternal noted that results are not directly comparable with the corresponding quarter due to the August 2024 acquisition of Orbgen Technologies Pvt Ltd and Wasteland Entertainment Pvt Ltd, which hold the movie ticketing and events businesses, respectively, previously under One 97 Communications Ltd (Paytm’s parent company).

Growth and Outlook :

Eternal’s founder, Deepinder Goyal, highlighted that the food delivery net order value (NOV) for Zomato grew 14% YoY, slightly up from 13% in the previous quarter, though recovery remains slower than expected. The company anticipates a slow uptick in growth in the near term due to multiple challenges, including soft discretionary consumption, competition from quick commerce, and increasingly volatile weather patterns.

“While we continue to work on inputs to the business, we are also constantly fighting multiple headwinds including soft discretionary consumption, the impact of quick commerce growth, and extreme weather conditions, which continue to weigh on near-term growth,” Goyal said.

Eternal’s revenue from operations for the quarter stood at Rs 13,590 crore, up from Rs 4,799 crore in the year-ago period, while total expenses were Rs 13,813 crore, compared to Rs 4,783 crore a year earlier.

Quick Commerce Surges :

The company’s quick commerce segment delivered robust performance, with net order value (NOV) growth surging 137% year on year (YoY) to Rs 11,679 crore, its highest in ten quarters. Adjusted revenue for the segment increased 756% to Rs 9,891 crore from Rs 1,156 crore a year ago. Eternal is nearing completion of its transition to inventory ownership, with nearly 80% of NOV now on its own inventory model.

Blinkit CEO Albinder Dhindsa said the company now expects to reach 2,100 stores by December 2025, and projects growth to 3,000 stores by March 2027.

GST Impact :

Eternal also discussed the impact of GST rate changes effective September 22. Blinkit’s typical basket saw an average tax reduction of nearly 3 percentage points, which is expected to drive demand from Q3FY26 onwards. However, the food delivery business faced a slight negative impact as the 18% GST on delivery charges affected about 25% of orders where delivery is not free.

Hyperpure Segment Decline :

The company’s Hyperpure B2B supplies segment saw revenue decline 55% QoQ to Rs 1,023 crore, primarily due to a 94% drop in non-restaurant business revenue to Rs 83 crore, following the shift to inventory ownership in quick commerce.

Strategy and Competition :

On the potential threat from new budget-focused food delivery apps like Toing and Ownly, Deepinder Goyal stated that Zomato’s existing platform can serve budget-conscious customers, citing a reduction in minimum order value for free delivery from Rs 199 to Rs 99 for Gold members. He emphasized that launching a separate app could significantly increase organizational complexity and would be considered only if long-term benefits became clear.