Eternal has reported mixed results for the fourth quarter of fiscal year 2025, reflecting both growth and challenges across its business segments.

Financial Performance

Revenue Growth

The company's consolidated revenue from operations grew 7.9% year-over-year to ₹5,833.00 crore in Q4 FY25, surpassing analyst expectations.

Profitability Decline

Despite revenue growth, profitability took a significant hit:

• Net profit declined 34.0% year-over-year
• Missed analyst estimates

This sharp decline in profit despite revenue growth highlights the intensifying competition and increased expenses in the sector.

Segment Performance

Quick Commerce (Blinkit)

The quick commerce segment, which includes Blinkit, saw significant expansion:

• Added 294 new stores
• Demonstrates commitment to strengthening position in the rapidly growing quick commerce market

Food Delivery

While specific details about the food delivery segment were not provided in the latest update, it remains a core part of Eternal's business model.

Strategic Moves

Eternal Limited has made some significant strategic decisions:

• Shutdown of Zomato Quick vertical
• Closure of Zomato Everyday vertical

These moves suggest a refocusing of resources and efforts on core business areas and potentially more profitable ventures.

Market Response

The market's reaction to the Q4 results was mixed:

• Initial negative response: Stock price dropped 5.3%
• Later recovery: Indicates investors may have found positive aspects in the overall performance and future outlook

Outlook

While Eternal Ltd. faces profitability challenges, the company shows promise in other areas:

• Ability to beat revenue expectations
• Continued expansion of quick commerce presence through Blinkit
• Potential for improved operational efficiency from closure of certain verticals

As Eternal Limited navigates these challenges, it will be crucial to monitor how effectively it balances its growth strategy with efforts to improve profitability in India's evolving food delivery and quick commerce landscapes.

Eternal , the company formerly known as Zomato, has released its fourth-quarter results, revealing a mixed financial picture that aligns with earlier analyst projections.

Revenue Surge Confirmed

Eternal reported a robust 63.8% year-over-year increase in revenue from operations, slightly exceeding analyst expectations:

This significant growth is likely attributed to strong performances in key business segments such as Hyperpure (B2B restaurant supply) and Blinkit (quick commerce).

Profit Decline Steeper Than Expected

While analysts had predicted a substantial drop in profits, the actual decline was even more pronounced:

This sharp decline in profitability highlights the challenges Eternal faces in balancing rapid expansion with bottom-line growth.

Segment-wise Performance

While detailed segment breakdowns are not yet available, the overall results suggest:

Food Delivery Business

• The core food delivery segment likely showed resilience, potentially with slight margin expansion.

Blinkit

• The quick commerce segment probably maintained its strong growth trajectory, contributing significantly to the overall revenue increase.
• However, ongoing investments in new store additions may have impacted profitability.

Investor Focus

As investors and market watchers digest these results, attention will likely focus on:

1. The impressive revenue growth, which exceeded the projected 62% increase
2. The steeper-than-expected decline in profitability and its implications for future quarters
3. Detailed performance metrics of individual segments, particularly Hyperpure and Blinkit, when they become available
4. Any guidance or outlook provided by the management for the upcoming quarters

The contrasting results of strong revenue growth and significant profit decline underscore the complex dynamics at play in Eternal's business model. The company's ability to improve profitability while maintaining its growth trajectory will be crucial in shaping investor sentiment in the coming months.

Investors and analysts will eagerly await the company's detailed financial report and management commentary to gain further insights into the factors driving these results and Eternal's strategies for addressing the profitability challenges while capitalizing on its strong revenue growth.