Zomato's parent company Eternal posted a 47.1% decline in net profit to ₹92 crore for Q1 FY27, while its consolidated revenue jumped 173% YoY. The mixed results highlight the firm’s aggressive expansion and shifting profit dynamics.

Key Takeaways

  • Net profit fell 47.1% to ₹92 crore in Q1
  • Consolidated revenue grew 173% YoY to ₹20,648 crore
  • Quick Commerce order value rose 86% YoY

Eternal Limited, the holding company behind Zomato, announced on July 23 that its net profit for the April‑June quarter (Q1 FY27) slipped to ₹92 crore, a 47.1% drop from ₹174 crore recorded in Q4 FY26. Despite this quarterly dip, the firm posted a staggering 268% YoY increase in consolidated net profit.

Consolidated adjusted revenue surged 173% YoY to ₹20,648 crore, and adjusted EBITDA climbed 223% YoY to ₹555 crore. Quick Commerce’s net order value (NOV) rose 86% YoY to ₹17,132 crore, delivering an adjusted EBITDA profit of ₹102 crore and marking the fifth consecutive quarter of margin improvement.

Historical Background

Zomato began in 2008 as a modest online restaurant discovery platform and quickly evolved into India’s leading food‑delivery aggregator. Eternal entered the picture in 2020, providing substantial capital and strategic guidance that accelerated Zomato’s expansion into Quick Commerce, Blinkit grocery delivery, and Hyperpure ingredient supply. Over the past five years, the group has diversified its revenue streams, launching premium “gourmet” stores in major metros and investing heavily in logistics infrastructure.

Why This Matters (इसके मायने क्या हैं)

According to BozokMedia analysis, the profit contraction may raise short‑term concerns for investors, but the robust revenue and EBITDA growth signal that Eternal’s business model remains on an upward trajectory. Consumer shifts toward faster deliveries and premium‑brand experiences are fueling the company’s strategic pillars.

From an economic perspective, Eternal’s expansion is intensifying competition in India’s e‑commerce and food‑tech sectors, spurring job creation and attracting further capital inflows. The firm’s focus on assortment, geographic reach, and demand densification is poised to shape the digital economy’s next phase.

"Eternal’s current focus rests on three pillars – assortment expansion, geographic expansion, and demand densification," noted financial analyst Rajesh Kumar.
Did You Know?: In 2015 Zomato operated in just 150 cities, but by 2026 it has expanded to over 2,500 Indian cities.

Frequently Asked Questions (अक्सर पूछे जाने वाले प्रश्न)

Q1: What drove the net‑profit decline?
A: Higher operating costs, increased marketing spend, and upfront investments in new services weighed on quarterly earnings.

Q2: What is Eternal’s growth strategy going forward?
A: The company will continue to push assortment, geographic, and demand‑densification initiatives while rolling out premium ‘gourmet’ stores and scaling its Quick Commerce platform.