Eternal Ltd (formerly known as Zomato Ltd) has reached a significant milestone, with its market capitalization soaring to ₹3 lakh crore, surpassing over 20 Nifty 50 constituents. The company's shares hit a record high of ₹311.60, driven by strong quarterly results and positive market sentiment.

Strong Performance Across Segments

Eternal Ltd reported impressive financial results for the quarter ended June 30:

• Consolidated revenue from operations grew by 70.4% year-over-year to ₹7,167.00 crore
• Profit before tax increased to ₹88.00 crore, up from ₹239.00 crore in the same quarter last year
• The company's quick commerce segment outperformed food delivery for the first time, contributing to nearly half of the annualized Net Order Value (NOV)

Segment-wise Performance

The quick commerce segment, which includes the Blinkit platform, has shown remarkable growth, with its NOV exceeding that of food delivery for the full quarter.

Strategic Developments

Eternal Ltd announced several key initiatives and changes:

1. Transition to inventory ownership in quick commerce, expected to improve margins by about 1 percentage point over time.
2. Incorporation of a new wholly-owned subsidiary, Blinkit Foods Limited, to engage in food services.
3. Expansion of quick commerce store network, with 243 new stores added in the quarter, bringing the total to 1,544 stores.
4. Launch of 'Greening India', an agroforestry initiative aimed at planting over 2.5 million trees across 10,000 acres of farmland.

Management Commentary

Deepinder Goyal, Managing Director and CEO, commented on the company's rotational leadership model: "We operate with a model we call Rotational Leadership, where the CEO role of each business is time-bound, typically for a two-year term. This approach brings structural agility to leadership, ensuring that no role becomes static and that fresh energy enters the system at regular intervals."

Market Position and Outlook

With its current valuation, Eternal Ltd has surpassed several Nifty 50 companies, including Wipro (₹2.72 lakh crore), Tata Motors (₹2.53 lakh crore), and Nestle India (₹2.38 lakh crore). The company's strong performance in quick commerce and strategic initiatives position it for continued growth in the evolving digital commerce landscape.

As Eternal Ltd continues to innovate and expand its services, investors and market watchers will be keenly observing its ability to maintain this growth trajectory and profitability in the coming quarters.

Eternal Limited (formerly known as Zomato Limited) has reported robust growth in its Q1 FY26 financial results, with significant expansion in its quick commerce business and continued progress across other segments. The company's consolidated revenue from operations surged by 70% year-over-year to INR 7,167.00 crore for the quarter ended June 30, 2025.

Quick Commerce Overtakes Food Delivery

In a notable shift, Eternal's quick commerce business has surpassed food delivery in terms of Net Order Value (NOV) for the first time in a full quarter. The company's B2C businesses, including food delivery, quick commerce, and going-out, achieved a combined NOV of INR 20,183.00 crore, marking a 55% year-over-year increase.

Albinder Bansal, who oversees the quick commerce segment, stated, "We added 243 net new stores this quarter, taking our store count to 1,544 stores by the end of the quarter. We are on track to get to 2,000 stores by Dec 2025."

Segment Performance

Profitability and Margin Improvement

Despite strong top-line growth, the company's consolidated profit after tax stood at INR 25.00 crore, down from INR 39.00 crore in the previous quarter. This decline was attributed to ongoing investments in the quick commerce and going-out segments.

Akshant Goyal, the company's financial leader, commented on the profitability outlook: "If we get to 5-6% of Adjusted EBITDA margin (as a % of NOV), ROCE should be at least 40% in our quick commerce business."

Business Model Transition

Eternal has initiated a transition from a marketplace model to a combination of marketplace and inventory-led model in its quick commerce segment. This shift is expected to provide more control over inventory and potentially improve margins.

Goyal explained, "We expect to see about 1 percentage point margin expansion over time, as a result of this transition."

Leadership Changes and Future Outlook

The company announced a new "Rotational Leadership" model, particularly for its food delivery business. Aditya Mangla, with a background in product and engineering, has been appointed to lead the food delivery business for the next two years.

Deepinder Goyal, Eternal's CEO, expressed optimism about the company's future: "The opportunity in front of us is massive, which means that the competition in this space is also very high. Under no circumstances, will we let go of our market position here, and lose sight of the size of the prize in the long term."

New Initiatives

Eternal also announced the launch of "Greening India," an agroforestry initiative aimed at planting over 2.5 million trees across 10,000 acres of farmland in partnership with thousands of farmers this year.

As Eternal Limited continues to evolve its business model and expand its operations, the company remains focused on long-term growth and market leadership across its diverse portfolio of services.