Eternal Ltd. (formerly Zomato) reaffirmed its goal of reaching 2,000 stores by December 2025, as it continues to expand aggressively across both large and smaller cities. The company also delivered robust growth in Q1 FY26, with revenue and key operating metrics beating estimates despite profitability pressures.
On track to 2,000 Blinkit stores, eyeing more beyond
Speaking to shareholders, Albinder Dhindsa stated that Eternal has visibility to achieve its milestone of 2,000 stores by December 2025, with further room for expansion beyond that. The company already sees opportunities to grow even in well-penetrated geographies, with Delhi, for instance, still growing at over 70% YoY in net order value (NOV). Eternal also expressed confidence that smaller cities remain equally promising for profitability, thanks to a narrow ~10% gap in NAOV (Net AOV) compared to larger cities and lower operational costs.
Management noted that after achieving 2,000 stores, the company has visibility to reach 3,000 stores and will communicate timelines for that after the current target is met.
Q1 FY26 Results: strong revenue growth, improved margins
Eternal reported a consolidated revenue from operations of ₹7,167 crore, up 70% YoY from ₹4,206 crore a year ago, and ahead of Kotak Securities’ estimate of ₹6,682.2 crore. Including other income, total income stood at ₹7,521 crore versus ₹4,442 crore last year.
While net profit declined 90% YoY to ₹25 crore, it still outperformed Kotak’s projection of a ₹30.9 crore loss. Profit before tax stood at ₹88 crore, down from ₹239 crore in Q1 FY25.
EBITDA for the quarter was reported at ₹73 crore, significantly better than the estimated ₹130.2 crore loss, though the EBITDA margin dropped to 13.95%, from 21.5% last year, due to higher costs tied to expansion and delivery operations.
Key business highlights
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Food delivery adjusted EBITDA margin improved to 5.0% of NOV, up from 3.9% last year, reflecting progress toward long-term margin guidance.
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Net order value (NOV) for B2C businesses grew 55% YoY (16% QoQ) to ₹20,183 crore.
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B2B arm Hyperpure posted 89% YoY (25% QoQ) revenue growth.
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Management guided for food delivery NOV growth to hopefully trend toward 20% YoY in FY27.
Outlook
Eternal remains focused on scaling its store count while balancing profitability. The company reiterated its confidence in long-term growth and profitability, citing maturing stores and better operational leverage as key drivers.
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