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Food delivery and quick commerce leader Eternal (previously Zomato) announced its Q2 FY26 numbers on October 16, 2025. The company reported a 63% year-on-year (YoY) fall in net profit to Rs. 65 crore from Rs. 176 crore in the corresponding quarter of the prior year.
However, the company's top line from operations grew 183% YoY to Rs. 13,590 crore on growth in both its food delivery and quick commerce businesses.
At the same time, profit after tax (PAT) improved 160% quarter-on-quarter to Rs. 25 crore in Q1 FY26, indicating the comeback in operating performance. Total expenses during the quarter jumped sharply to Rs. 13,813 crore from Rs. 4,783 crore in Q2 FY25 on account of greater expenses related to network addition and new store openings.
Eternal's food ordering business, which had cooled off in recent quarters, posted a 14% YoY increase in net order value (NOV) and improved profitability. The adjusted EBITDA margin of the company reached an all-time high of 5.3% in NOV, from 5% in Q1 FY26. CEO Deepinder Goyal said that though recovery in growth was slower than anticipated, Eternal is still committed to democratizing restaurant food and making it affordable.
He also noted that the industry is being buffeted by headwinds, including weak discretionary spend, the growth of quick commerce, and erratic weather patterns, which are still dampening near-term demand.
The quick commerce business of the company, Blinkit, performed phenomenally, with 137% YoY and 27% QoQ growth in NOV, its best in the last ten quarters. Blinkit opened 272 new stores, bringing its total to 1,816 stores. Its EBITDA margin moved up to -1.3%, from -1.8% in the earlier quarter, indicating a march toward profitability. Founder Albinder Dhindsa said Blinkit intends to hit 3,000 stores by March 2027, keeping with its steady rate of adding stores.
Eternal's shares fell almost 2% to close at Rs. 348.40 on the BSE after hitting a 52-week high of Rs. 368.40 during the day. Analysts at Angel One anticipate short-term pressure on account of profit booking but see Rs. 320 as a critical support and Rs. 355 as resistance.
Eternal's most recent quarter sees a strategic balance between growth and profitability. Although increasing costs have impacted near-term earnings, robust revenue momentum, rapid Blinkit growth, and margins that are improving are all signs that the company is set up for sustainable long-term growth in both food delivery and quick commerce businesses.
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