Eternal (Zomato) Q2 Results: PAT Falls 63% To Rs 65 Crore, Revenue Jumps To Rs 13,590 Crore

Eternal, formerly known as Zomato, reported a 63% year-on-year (YoY) decrease in profit after tax (PAT) for the second quarter (July-September) of FY26, falling to ₹65 crore compared to ₹176 crore in the same period last year. Despite the drop in profitability, the company witnessed a substantial 183% YoY surge in revenue from operations, reaching ₹13,590 crore.

The company's Q2 net profit, however, was higher than the previous quarter's (April-June) ₹25 crore.

Several brokerages had predicted a significant jump in profit and margin expansion for Zomato prior to the earnings release. Nuvama Institutional Equities expected Eternal to post a 27% quarter-on-quarter (QoQ) and 89.7% YoY revenue growth, driven by sustained momentum in Blinkit. They estimated food delivery gross order value (GOV) to grow 4.9% QoQ and 16.5% YoY. Blinkit's GOV was expected to rise 23% QoQ and 137.1% YoY, with revenue potentially surging 315.2% YoY due to the transition to the 1P model.

The company's revenue was expected to be 21% higher at ₹8,665 crore versus ₹7,170 crore. Profit was projected to be 330% higher at ₹108 crore versus ₹25 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) was anticipated to be 105% higher at ₹236 crore versus ₹115 crore, with margin seen at 2.73% versus 1.6%.

Consolidated adjusted EBITDA margin was likely to improve 30 basis points QoQ to 2.7% due to lower losses in Blinkit.

While the GST rate cuts brought down the average GST on Blinkit's typical basket by around 3%, which should drive more demand, Q2 saw a negative impact on both growth and margins as customers went into a wait-and-watch mode. A positive rub-off on demand is expected from Q3FY26 onwards.