Eternal Limited (formerly known as Zomato Limited) has published its Annual Report for the financial year ended March 31, 2026, and issued a notice convening its 16th Annual General Meeting (AGM) to be held on Wednesday, August 26, 2026 at 12:00 P.M. (IST) through video conferencing. The report reveals a transformative year for the company, marked by a significant shift in its quick commerce business model and substantial growth across most segments.

Financial Performance: Consolidated Highlights

Consolidated revenue from operations grew 169% year-on-year to INR 54,364 crore in FY26 from INR 20,243 crore in FY25, primarily driven by the transition to an inventory model in quick commerce. Under this model, revenue now includes the full monetary value of goods sold rather than only the marketplace commission. The following table summarises the key consolidated and standalone financial metrics for FY26 and FY25:

Consolidated PAT declined to INR 366 crore in FY26 from INR 527 crore in FY25, largely due to an increase in depreciation and amortisation expense in the quick commerce business. Consolidated Adjusted EBITDA improved to INR 1,189 crore in FY26 from INR 1,079 crore in FY25, while consolidated EBITDA for the full fiscal year was positive at INR 1,208 crore.

Segment-Wise Revenue Performance

The company operates across four key business segments: food delivery, quick commerce, going-out, and B2B supplies (Hyperpure). The segment-wise revenue performance for FY26 is detailed below:

Food delivery revenue grew 26% YoY to INR 10,159 crore, driven by higher order volumes and increased revenue per order. Quick commerce revenue surged 626% YoY to INR 37,779 crore, reflecting the shift to the inventory-led model. Going-out revenue grew 32% YoY to INR 973 crore, with FY26 being the first full financial year post-acquisition of the entertainment ticketing business. B2B supplies revenue declined 13% YoY to INR 5,366 crore, driven by scale-down of the non-restaurant business following the quick commerce model transition, though the core restaurant supplies business continued to grow.

Corporate Developments and Governance

During FY26, Deepinder Goyal resigned as Managing Director and Chief Executive Officer effective February 1, 2026, and was subsequently appointed as Vice Chairman and Non-Executive Director effective March 13, 2026. Albinder Singh Dhindsa was appointed as Chief Executive Officer effective February 1, 2026. The Board met 8 times during the financial year, and no dividend was recommended for FY26.

As at March 31, 2026, the company had 16 direct subsidiaries and 4 step-down subsidiaries, with no associate companies or joint ventures. Key subsidiary changes during the year included the incorporation of Blinkit Foods Limited (August 18, 2025) and Eternal General Service Foundation (December 18, 2025), and the dissolution of Zomato Malaysia Sdn. Bhd. and Zomato Netherlands B.V.

The statutory auditors, M/s. Deloitte Haskins & Sells, issued an unmodified opinion on both standalone and consolidated financial statements for FY26. The secretarial audit report by M/s. Chandrasekaran Associates also contained no qualifications or adverse remarks.

QIP Utilisation and Capital Structure

The company's utilisation of Qualified Institutions Placement (QIP) proceeds as on March 31, 2026 is summarised below:

The issued, subscribed and paid-up share capital of the Company as on March 31, 2026 stood at INR 9,65,03,50,647/-, with no change in capital structure during the year. As on March 31, 2026, the permanent employee count was 6,750 on a standalone basis and 21,995 on a consolidated basis.

AGM Details

The 16th AGM will be held on August 26, 2026 at 12:00 P.M. (IST) through VC/OAVM. The cut-off date for e-voting eligibility is August 19, 2026, with remote e-voting open from August 22, 2026 at 9:00 A.M. (IST) to August 25, 2026 at 5:00 P.M. (IST). The sole ordinary business item, apart from adoption of financial statements, is the re-appointment of Sanjeev Bikhchandani (DIN: 00065640) as Non-Executive Nominee Director, who retires by rotation.

Eternal Limited, formerly known as Zomato Limited, raised its long-term guidance for its quick commerce segment from a range of 5-6% to 6% during its Q1FY27 earnings conference call held on July 22, 2026. The upward revision reflects increased operational efficiency and higher margin visibility driven by strategic capital expenditures and larger store sizes. This development signals growing confidence in the sustainability of the business model amidst a competitive landscape that management describes as increasingly predictable.

The earnings call was moderated by the company’s management team, including Chief Executive Officer Albinder Singh Dhindsa, Chief Financial Officer Akshant Goyal, and Head of Corporate Development Kunal Swarup. The discussion focused on the financial performance of Q1FY27, with particular emphasis on the quick commerce platform Blinkit, food delivery operations, and emerging ventures like Bistro and District. The transcript was filed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Quick Commerce Strategy and Competition

Management highlighted that the first quarter of FY27 represented the peak of competitive intensity in the quick commerce sector. Albinder Singh Dhindsa noted that while competition remains high, it has become more predictable, primarily manifesting as subsidies on grocery products and delivery fees. He argued that pricing-led growth requires sustained cash burn and creates a systemic trap for competitors who cannot easily exit without losing customers acquired through discounts. Eternal’s strategy focuses on supply creation and infrastructure growth rather than discounting, which management believes is unsustainable.

Akshant Goyal added that investments in capex per store have led to increased efficiency. The company is opening larger stores, which allows for better assortment and throughput. Despite this, the net average order value (NAOV) in Blinkit has remained flat year-on-year. Goyal explained that NAOV is an outcome of category mix and product assortment, not a primary driver. The focus remains on order volume growth and maintaining profitability at current NAOV levels. Seasonality may cause slight fluctuations, with NAOV potentially climbing in Q3.

Key Operational Metrics

Food Delivery and Emerging Businesses

In the food delivery segment, Eternal reported an increase in monthly transacting users (MTUs), driven by both new user acquisition and higher frequency among existing customers. Akshant Goyal clarified that there is no overlap between the food delivery business and the Bistro venture, which operates as a separate entity. The company is adding approximately 10 kitchens per quarter for Bistro, focusing on operational efficiency and menu optimization before accelerating expansion. Management noted that older kitchens are showing progress in throughput and profitability.

Regarding competition from platforms like Toing and Ownly, Goyal stated that Eternal has defended its market share by remaining price competitive in specific markets. An example cited was reducing the eligibility threshold for free delivery for gold members from ₹199 to ₹99, lowering costs for customers seeking low-value orders. The restaurant count saw a slight dip due to external factors like LPG issues affecting some establishments, rather than strategic rationalization.

Financials and Capital Allocation

Management addressed questions on capital expenditure, noting a lumpy investment pattern. While the typical capex per store is guided at ₹2.5 crore, actual quarterly spend can vary significantly due to warehousing investments. Akshant Goyal emphasized that looking at capex over a longer period reveals a lower per-store average. The company is also seeing improvements in working capital, with net working days reducing to 14 days from an initial estimate of 18 days, driven by better inventory replenishment and supply chain throughput.

On margins, Goyal confirmed that the long-term target includes an EBIT margin of 4% and an Adjusted EBITDA margin of close to 6%. These figures account for ESOP expenses and depreciation. Inventory losses, largely driven by perishables, remain at approximately 1.8% of net order value (NOV) and are netted out of gross profit. Management does not expect material improvement in this metric as it has been asymptotic so far.

What the Numbers Show

The divergence between rising capex per store and flat NAOV highlights a strategic shift towards scale and frequency over basket size. By increasing infrastructure spend, Eternal aims to capture a larger share of wallet through daily usage rather than larger individual transactions. This approach suggests that profitability will be driven by volume efficiency and supply chain optimization rather than price increases or higher order values. The reduction in working capital days further supports improved cash flow dynamics, indicating operational maturity despite ongoing investments.

Kunal Swarup provided brief updates on other segments, noting that District is operating across five categories, with dining-out and movies being the largest contributors. The Nugget business, an enterprise AI product, remains in stealth mode with good traction but limited disclosure for now. The company expects to share more details on these ventures in future quarters.