Zomato Parent Eternal's Profit Tanks 90% as Expenses Take a Big Bite
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Zomato's parent company, Eternal, on Monday, reported a steep 90 per cent fall in its net profit, a YoY INR 25 crore compared to the INR 253 crore reported a year ago for the same period. The company's revenue from operations for Q1 of FY26 stood at INR 7,167 crore, up by 70.4 per cent from INR 4,206 crore in the corresponding quarter.
Eternal's expenses stood at INR 7,433 crore, up by 77 per cent.
Eternal's quick-commerce company Blinkit's revenue stood at INR 2,400 crore for Q1, recording an uptick of nearly 154 per cent from INR 942 crore announced in Q1FY25. The food delivery arm's revenue saw a rise of 16 per cent to INR 2,261 crore. Eternal's B2B business, Hyperpure's Revenue grew 89 per cent YoY (25 per cent QoQ).
Eternal has also said that it will transition its quick commerce business from a marketplace model to inventory ownership over the next 2-3 quarters.
"Our teams are well prepared for this transition, and we expect to start working with brands directly without any disruption to the business. Control over inventory gives us more leverage on margins in the business, plus allows us to push harder and faster on assortment 6 expansion. We expect to see about a 1 percentage point margin expansion over time as a result of this transition. As an outcome of this transition, we will also see shrinkage in Hyperpure's non-restaurant business, as most of the B2B buyers in that business were sellers on our quick commerce platform," said Akshant Goyal, CFO, Zomato.
Eternal has also announced that its board has approved the incorporation process of Blinkit Foods, its wholly-owned subsidiary, with a proposed share capital of INR 10 lakh. The company said, "Blinkit Foods is proposed to be incorporated as a wholly owned subsidiary and would inter alia engage in the business of providing food services (including innovation, preparation, sourcing, sale and delivery of food to customers)."
Earlier this month, the company announced the appointment of Aditya Mangla as the CEO of the Food ordering and delivery business and SMP at Eternal.
Deepinder Goyal, Founder, Managing Director & Chief Executive Officer, Eternal, said that the decision comes from its operational model that they call "Rotational Leadership," where the CEO role of each business is time-bound, typically for a two-year term.
"Rotational Leadership is not about changing faces; it changes how decisions get made. Leaders move with urgency, knowing their window to create impact is finite. It reduces complacency, accelerates execution, and allows more diverse leadership styles to emerge. Over time, it also builds organisational muscle memory, as teams learn to operate independently of any one person, making us more resilient and adaptable as we grow," said Goyal.
Eternal's shares on Monday were listed at INR 271.20, on BSE, up by 5.38 per cent despite the announcement of a steep decline in profits.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
6 minutes ago
- CNN
US and China reportedly agree to critical extension, preventing tariff surge on the world's two largest economies
Tariffs Asia ChinaFacebookTweetLink Follow The United States and China agreed to pause tariff hikes on each other's goods for an additional 90 days, according to multiple reports citing White House officials. Without the agreement, tariffs were set to immediately surge, risking a return to ultra-high levels that had formed an effective blockade on trade between the world's two largest economies. The news, first reported by CNBC, comes hours ahead of a 12:01 am ET deadline when tariffs on Chinese goods were set to rise to 64% from 30%. It's unclear what rates China would have charged on American goods, which are currently subject to minimum 10% tariffs. It also comes after Trump imposed a slew of 'reciprocal' tariffs on trading partners around the world, which have raised the United States' effective tariff rate to levels not seen since the Great Depression. Higher tariffs on Chinese goods, America's second-largest source of imports, would have almost certainly raised the costs many American businesses and consumers could pay — or already are paying — because of increased import taxes Trump enacted. This is a developing story. It will be updated.
Skift
7 minutes ago
- Skift
8 Out of Top 10 Countries for U.S. Tourism Showed Declines in July
Tourism to the U.S. from overseas has declined for 5 of the past 6 months. Higher visa fees and other restrictions could make it worse. Overseas visits to the U.S. dropped 3.1% in July, extending a slide that began earlier this year, according to preliminary government data released Monday. The National Travel and Tourism Office reported that arrivals from Western Europe fell 4% year-over-year, driven by a steep 14.7% drop from Germany. Other major declines came from China (down 13.8%), Switzerland (down 12.7%), the Netherlands (down 7.2%), and India (down 5.5%). Visits have fallen in five of the past six months, with April the one exception, when there was a 1% gain. The data excludes arrivals from Canada and Mexico, the two largest inbound markets for the U.S. In June, air travel by Canadians to the U.S. dropped 22% and car crossings dropped 33%, the sixth straight month of declines, according to Statistics Canada. Overall, eight of the top 10 overseas markets for U.S. tourism saw year-over-year declines in July. The only gains came from Japan and Italy. UK: – 0.4% India: -5.5% France: -0.2% Japan: + 9.1% Germany: – 14.7% Brazil: -1.7% South Korea: – 0.8% China: – 13.8% Italy: + 6.3% Colombia: – 0.3% The declines have coincided with increased global tensions related to rhetoric from the Trump administration and tough negotiations over tariffs. In addition, there were several isolated but highly publicized reports of tourists being detained at U.S. checkpoints and the U.S. has resurrected travel bans and other travel restrictions. The recently passed tax and spending law – 'One Big Beautiful Bill Act' – includes an 80% reduction in federal funding for Brand USA, which markets the U.S. abroad as a tourist destination.
CNN
8 minutes ago
- CNN
US and China reportedly agree to critical extension, preventing tariff surge on the world's two largest economies
Tariffs Asia ChinaFacebookTweetLink Follow The United States and China agreed to pause tariff hikes on each other's goods for an additional 90 days, according to multiple reports citing White House officials. Without the agreement, tariffs were set to immediately surge, risking a return to ultra-high levels that had formed an effective blockade on trade between the world's two largest economies. The news, first reported by CNBC, comes hours ahead of a 12:01 am ET deadline when tariffs on Chinese goods were set to rise to 64% from 30%. It's unclear what rates China would have charged on American goods, which are currently subject to minimum 10% tariffs. It also comes after Trump imposed a slew of 'reciprocal' tariffs on trading partners around the world, which have raised the United States' effective tariff rate to levels not seen since the Great Depression. CNN reached out to White House officials for comment. Higher tariffs on Chinese goods, America's second-largest source of imports, would have almost certainly raised the costs many American businesses and consumers could pay — or already are paying — because of increased import taxes Trump enacted. This is a developing story. It will be updated.
