Eternal Ltd, the parent company of Zomato and Blinkit, reported a mixed set of financial results for the April-June quarter (Q1 FY27), with profit falling well short of market expectations even as revenue recorded strong growth. The company posted a consolidated net profit of Rs 92 crore for the quarter. Sequentially, profit declined 47 per cent from Rs 174 crore reported in the January-March quarter (Q4 FY26). However, on a year-on-year basis, the bottom line more than tripled from Rs 25 crore recorded in the corresponding quarter last year.
While profitability remained under pressure, Eternal’s top line continued to expand at a healthy pace. The company reported consolidated revenue of Rs 20,211 crore for Q1 FY27.
Revenue increased 17 per cent sequentially from Rs 17,292 crore in the previous quarter. Compared with the same period a year ago, revenue more than doubled from Rs 7,167 crore, reflecting sustained growth across the company’s businesses.
Operational performance also improved during the quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 22 per cent quarter-on-quarter to Rs 594 crore, up from Rs 486 crore in Q4 FY26. EBITDA margin edged higher to 2.9 per cent, compared with 2.8 per cent in the preceding quarter.
Commenting on the company’s growth strategy, Eternal founder Deepinder Goyal reiterated that expanding the market remains the company’s priority over protecting short-term profitability.
“If there comes a point where we have to spend margin to grow, we will – without hesitation. We have always prioritised long-term market expansion over short-term margin. But right now, we don’t need to make any trade-off,” Deepinder Goyal, founder, Eternal, said in a letter to shareholders.
Eternal Rejects Low-Price Food Delivery Race
The company also used its shareholder communication to address increasing competition in the food delivery market.
Competitors including Swiggy and Rapido have introduced value-focused offerings through Toing and Ownly, respectively, in an effort to attract price-sensitive consumers. Eternal, however, believes that competing solely on lower prices is not a sustainable long-term strategy.
Explaining the company’s position, Goyal said, “There’s no new use case being unlocked here. The customer traction is purely price-driven, and price-driven traction without structural economics tends to resolve itself,” Goyal said.
Instead of matching discount-led models, Eternal is betting on Bistro, the food delivery business under Blinkit, to cater to evolving consumer demand.
Blinkit’s Bistro Takes Centre Stage
According to Goyal, Bistro represents Eternal’s approach to addressing the market segment that rivals are attempting to capture through aggressive pricing.
“What we are spending energy on is Bistro – which is our answer to the question these platforms (Ownly and Toing) are pretending to solve,” he said.