Eternal Limited , the parent company of food delivery giant Zomato and quick commerce platform Blinkit, has reported a significant shift in its business dynamics for the first quarter of fiscal year 2026. The company's financial results reveal a strategic pivot towards quick commerce, with Blinkit now surpassing Zomato in revenue contribution.

Quick Commerce Leads the Way

In a noteworthy development, Eternal's quick commerce segment, primarily driven by Blinkit, has emerged as the company's largest B2C business. For the first time, Blinkit's net order value (NOV) exceeded that of Zomato's food delivery service for an entire quarter. This milestone underscores the rapid growth and increasing importance of the quick commerce sector within Eternal's portfolio.

Financial Highlights

• Consolidated Revenue: Eternal reported a robust consolidated revenue growth of 67% year-over-year, reaching INR 7,167.00 crore for Q1 FY26.
• Adjusted EBITDA: Despite strong top-line growth, the company's Adjusted EBITDA declined by 42% YoY to INR 172.00 crore, reflecting ongoing investments in quick commerce and going-out segments.
• Segment Performance:

  Segment	Revenue (INR Crore)	YoY Growth
  Quick Commerce	2,400.00	155%
  Food Delivery	2,261.00	-
  Hyperpure Supplies	2,295.00	89%

Strategic Shifts and Investments

Eternal is actively transitioning its quick commerce business from a marketplace model to a combination of marketplace and inventory-led operations. This shift is expected to provide greater control over margins and accelerate assortment expansion.

The company has also initiated 'Bistro', a 10-minute food delivery service, currently operational in Delhi-NCR and Bangalore with 38 kitchens. While still in its early stages, Bistro aims to address unmet demand for high-quality, low-cost meals and quick snacks.

Expansion and Future Outlook

Blinkit added 243 new stores in Q1, bringing its total store count to 1,544. The company aims to reach 2,000 stores by December 2025. Eternal's management expressed confidence in the long-term profitability of the quick commerce business, with some cities already achieving over 2.5% Adjusted EBITDA margin.

Leadership Changes

In line with its 'Rotational Leadership' model, Eternal announced that Aditya Mangla, a product and engineering veteran, will lead the Zomato business for the next two years. This move aims to bring fresh perspectives and accelerate execution in the food delivery segment.

Environmental Initiative

Eternal has launched 'Greening India', an agroforestry initiative aimed at planting over 2.5 million trees across 10,000 acres of farmland in FY26. This project aligns with the company's environmental goals and has the potential to remove 1.5 million tonnes of CO2 from the atmosphere over 30 years.

As Eternal continues to evolve its business model and invest in high-growth areas, the company remains focused on scaling revenue while working towards long-term profitability across its diverse portfolio of services.

Eternal Ltd (formerly known as Zomato Ltd) has reported robust growth in its first quarter results, with significant developments across its business segments. The company also announced strategic changes to its quick commerce operations.

Revenue and Profitability

For Q1, Eternal Ltd posted consolidated revenue from operations of Rs 7,167.00 crore, marking a substantial 70.4% year-over-year increase from Rs 4,206.00 crore in the same quarter last year. The company's net order value (NOV) of B2C businesses grew 55% year-over-year to Rs 20,183.00 crore.

Despite the strong top-line growth, the company's profitability took a hit. Profit for the quarter stood at Rs 25.00 crore, down 90.1% from Rs 253.00 crore in the same quarter last year. This decline was primarily attributed to continued investments in quick commerce and going-out segments.

Segment Performance

Quick Commerce

The quick commerce segment emerged as a standout performer, with its NOV exceeding that of food delivery for the first time in a full quarter. Quick commerce revenue grew 155% year-over-year to Rs 2,400.00 crore.

Food Delivery

Food delivery NOV growth slowed to 13% year-over-year, which the company expects to be the bottom, with growth likely to trend towards 20% by FY27.

Hyperpure B2B

The Hyperpure B2B business saw revenue growth of 89% year-over-year, reaching Rs 2,295.00 crore. However, the company anticipates a decline in this segment in the coming quarters due to strategic changes in the quick commerce business model.

Strategic Shifts and New Initiatives

Eternal Ltd announced a significant change in its quick commerce business model, transitioning from a marketplace to an inventory ownership model over the next 2-3 quarters. This shift is expected to result in about 1 percentage point margin expansion over time.

The company also revealed plans to launch a food preparation and delivery service through a new subsidiary, Blinkit Foods Ltd, to compete in the quick commerce food space.

In an effort to promote sustainability, Eternal Ltd launched 'Greening India', an agroforestry initiative aimed at planting over 2.5 million trees across 10,000 acres of farmland.

Leadership Changes

Eternal Ltd introduced a 'Rotational Leadership' model, particularly for its Zomato business. As part of this, Aditya Mangla, with a background in product and engineering, will lead the Zomato business for the next two years.

Outlook

While facing some near-term profitability challenges, Eternal Ltd remains optimistic about its long-term prospects. The company expects its quick commerce business to achieve 5-6% Adjusted EBITDA margins and a return on capital employed of at least 40% in the long run.

As Eternal Ltd continues to evolve its business model and explore new growth avenues, investors will be keenly watching how these strategic shifts impact the company's financial performance in the coming quarters.