Eternal posts 2.8X revenue growth in Q2 FY26; EBIT remains negative at Rs 137 Cr

Foodtech and quick commerce platform Eternal (formerly Zomato) released its financial results for Q2 FY26 on Thursday. The Gurugram-based company reported a 63% decline in profit for the quarter ending September 2025, while its revenue nearly tripled.

Importantly, excluding other income of Rs 352 crore and interest costs of Rs 86 crore, Zomato’s parent Eternal posted a negative EBIT of Rs 137 crore in the last quarter.

Eternal’s revenue from operations grew 2.8X to Rs 13,590 crore in Q2 FY26 in contrast to Rs 4,799 crore in Q2 FY25, as per the firm’s consolidated financial results sourced from the National Stock Exchange (NSE).

The surge in revenue was primarily driven by Blinkit, as its business model in quick commerce has shifted from a marketplace structure to an inventory-led model. Under this new approach, revenue now reflects the entire value of goods sold (as per Ind AS), rather than just the marketplace commission earned earlier.

Eternal operates several business units, including a food marketplace, Hyperpure, and a quick commerce platform, BlinkIt.

Income from Eternal’s food delivery business (Zomato) contributed 18% of the total revenue in Q2 FY26, growing 23% to Rs 2,485 crore from Rs 2,012 crore in Q2 FY25. Revenue from the quick commerce segment (Blinkit) saw significant growth, rising 8.5X to Rs 9,891 crore in Q2 FY26 from Rs 1,156 crore in Q2 FY25. However, Hyperpure saw a fall of 30.5% to Rs 1023 crore during the second quarter of FY26.

Earnings from the 'Going-out' segment and other non-operating income brought the Eternal Group’s total revenue to Rs 13,942 crore in Q2 FY26. On a half yearly basis the company’s revenue grew 2.3X to Rs 20,757 crore in H1 FY26 as compared to Rs 9,005 crore in H1 FY25.

The cost of material accounted for 56% of the total expense, this cost grew by 5.8X to Rs 7,742 crore in Q2 FY26 from Rs 1,334 crore in Q2 FY25. Delivery and related charges increased by 58% to Rs 2,213 crore in Q2 FY26. Employee benefit cost rose 46% to Rs 865 crore while spending on advertising and marketing almost doubled to Rs 806 crore in Q2 FY26. 

Overall, the company’s total expenditure increased by 2.8X to Rs 13,813 crore in Q2 FY26, up from Rs 4,783 crore in Q2 FY25.

The 5.8X surge in material cost led the company's profit to fall by 63% to Rs 65 crore in Q2 FY26 from Rs 176 crore in Q2 FY25. On a per-unit basis, the Gurugram-based company spent Rs 1.02 to earn every rupee of revenue during the quarter ending September 2025.

Eternal’s share price (as of 15:14 PM) is trading at Rs 342.85, giving the foodtech platform a market capitalization of Rs 3,32,985 crore (approximately $37.92 billion).