Eternal Limited, earlier known as Zomato Limited, reported strong financial results for the first quarter of FY27. The company recorded sharp growth in revenue and operating profit, mainly due to the strong performance of Blinkit and steady growth in its food delivery business. However, its net profit fell compared to the previous quarter because of higher tax expenses and not because of weaker business operations.
During the April-June quarter, Eternal’s consolidated revenue from operations reached ₹20,211 crore, up 173% year-on-year (YoY) and 16.9% higher than the previous quarter. The company’s Adjusted EBITDA also grew 223% YoY to ₹555 crore, showing better profitability across its businesses.
The company’s consolidated net profit stood at ₹92 crore, which was 47% lower than the ₹174 crore reported in the previous quarter. However, compared to the same period last year, net profit increased by 268%.
Eternal said the fall in quarterly profit was mainly because its tax expense increased sharply. Tax costs rose from ₹54 crore in the previous quarter to ₹180 crore in Q1 FY27. This happened because the company is expected to fully use its past business losses during FY27, making more of its income taxable.
The company also ended the quarter with a strong financial position. Its cash and investments reached a record ₹18,288 crore, increasing by ₹316 crore during the quarter.
Blinkit Leads Growth While Food Delivery Stays Strong
Blinkit was the biggest contributor to Eternal’s growth during the quarter.
The quick commerce platform reported an Adjusted EBITDA profit of ₹102 crore, compared to a loss of ₹162 crore in the same quarter last year. Its Net Order Value (NOV) increased 86% YoY to ₹17,132 crore, showing strong demand from customers.
Blinkit added 200 new stores during the quarter, taking its total store count to 2,443. The average daily NOV per store improved to ₹8.27 lakh, showing better sales and efficiency.
The company’s adjusted revenue from Blinkit rose to ₹15,664 crore. Eternal said this jump was partly because Blinkit shifted from a marketplace model to a first-party inventory model. Even after removing this accounting impact, Blinkit’s revenue still grew 117% from last year.
Management believes Blinkit can continue to deliver strong returns as the business grows further.
Eternal’s food delivery business also performed well. It recorded its fifth straight quarter of faster growth, with NOV rising 20% YoY to ₹10,769 crore.
The segment earned an Adjusted EBITDA of ₹606 crore, with a healthy 5.6% margin. The company said growth was supported by a higher platform fee, which is now around ₹14.9 per order, and a growing customer base of 27.2 million monthly active users.
The company’s B2B supplies business, Hyperpure, also turned profitable during the quarter. Revenue increased 27% YoY to ₹1,034 crore, while Adjusted EBITDA improved to a profit of ₹6 crore, compared to a loss of ₹18 crore a year ago.
The Going-out business, which includes dining, events and movie ticket bookings through the District platform, also continued to grow. Its NOV increased 60% YoY to ₹3,218 crore. Although the business remained loss-making, its losses reduced as operations expanded.
At the same time, Eternal continued investing in newer businesses like Bistro and Nugget, which resulted in higher operating losses as the company focuses on long-term growth.
Eternal Expands New Businesses Despite Regulatory Challenges
After changing its corporate name from Zomato Limited to Eternal Limited earlier this year, the company has continued to expand into new businesses.
Its board has approved the transfer of its AI-powered customer support platform Nugget to its wholly owned subsidiary, Carthero Technologies Private Ltd., for ₹35 crore. Nugget earned ₹7.20 crore in revenue during FY26 and had a net worth of ₹10.54 crore as of March 2026.
The company is also expanding Bistro, its affordable food business. Eternal says Bistro is designed as a technology-based food manufacturing system instead of a traditional restaurant. The goal is to serve meals priced between ₹50 and ₹150 while keeping the business profitable. CEO Deepinder Goyal said the company believes sustainable business models are better than heavy discounting.
At the same time, Eternal is facing several regulatory issues.
The company has received GST notices and tax demands worth ₹447 crore over the way delivery charges were taxed before new GST rules came into effect. Eternal has said it believes it has a strong legal case.
The company is also challenging Karnataka’s new gig worker welfare law. If implemented fully, industry experts estimate it could increase delivery costs by ₹2 to ₹3 per order, creating an additional annual cost of around ₹430 crore.
Another issue is growing concern from restaurant owners over private-label food businesses. Restaurant associations have questioned whether food delivery platforms should use marketplace data while also running their own food brands. These concerns are currently under regulatory review.
Despite these challenges, analysts remain positive about Eternal’s future. Brokerage firm Motilal Oswal has maintained a “Buy” rating with a target price of ₹380. The brokerage believes Blinkit’s improving profitability, the steady growth of the food delivery business and Eternal’s target of reaching $1 billion in adjusted EBITDA by FY29 make the company one of India’s strongest consumer internet businesses.