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Eternal Reports 78% Profit Drop as Blinkit Expansion Strains Margins

The company’s Q4 FY25 results highlight soaring revenues but mounting losses in its quick commerce arm, delaying profitability projections.

Eternal (Zomato) Q4 results: Net profit dives 78% to Rs 39 crore; revenue up 64%
Shutting down Zomato Quick, Everyday: CEO Deepinder Goyal; gives reasons for subdued NOV growth
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Blinkit losses widen to Rs 178 crore in Q4 FY25; company adds 294 net new stores

Overview

  • Eternal Ltd, formerly Zomato, posted a 78% year-on-year drop in net profit to ₹39 crore, despite a 64% revenue surge to ₹5,833 crore in Q4 FY25.
  • Blinkit, the company’s quick commerce division, added a record 294 stores, bringing its total to 1,301, but widened its adjusted EBITDA loss to ₹178 crore due to aggressive expansion costs.
  • The company announced the closure of Zomato Quick and Everyday services, citing unviable profitability and inconsistent customer experiences.
  • A new Net Order Value (NOV) metric was introduced to better reflect actual customer spending, particularly in Blinkit’s non-grocery categories.
  • JP Morgan revised Blinkit’s EBITDA break-even timeline to Q3 FY26, as Eternal faces intensifying competition from Swiggy Instamart, Zepto, and potential entrants like Amazon and Flipkart.