{"id":1564,"date":"2025-07-22T23:01:48","date_gmt":"2025-07-22T17:31:48","guid":{"rendered":"https:\/\/recentnewstech24.com\/?p=1564"},"modified":"2025-07-22T23:08:38","modified_gmt":"2025-07-22T17:38:38","slug":"a-new-chapter-for-zomato-welcome-to-eternal-limited","status":"publish","type":"post","link":"https:\/\/recentnewstech24.com\/?p=1564","title":{"rendered":"A New Chapter for Zomato: Welcome to Eternal Limited"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"972\" height=\"530\" src=\"https:\/\/recentnewstech24.com\/wp-content\/uploads\/2025\/07\/Untitled-51.jpg\" alt=\"\" class=\"wp-image-1568\" srcset=\"https:\/\/recentnewstech24.com\/wp-content\/uploads\/2025\/07\/Untitled-51.jpg 972w, https:\/\/recentnewstech24.com\/wp-content\/uploads\/2025\/07\/Untitled-51-300x164.jpg 300w, https:\/\/recentnewstech24.com\/wp-content\/uploads\/2025\/07\/Untitled-51-768x419.jpg 768w, https:\/\/recentnewstech24.com\/wp-content\/uploads\/2025\/07\/Untitled-51-150x82.jpg 150w\" sizes=\"auto, (max-width: 972px) 100vw, 972px\" \/><\/figure>\n\n\n\n<p>In a quarter defined by aggressive strategic transformations and market reorientation, Zomato\u2014now officially rebranded as&nbsp;<strong>Eternal Limited<\/strong>\u2014has reported its financial results for the first quarter of fiscal year 2026. This is more than just a quarterly update; it&#8217;s a&nbsp;<strong>watershed moment that&#8217;s indicative of a new era for the company<\/strong>.<\/p>\n\n\n\n<p>While the consolidated net profit plummeted by&nbsp;<strong>a staggering 90% year-on-year<\/strong>&nbsp;to \u20b925 crore, the top-line revenue growth paints a completely different picture. Revenue from operations rose dramatically by&nbsp;<strong>70% year-on-year to \u20b97,167 crore<\/strong>\u2014a clear signal that the company is prioritizing&nbsp;<strong>high-growth segments even at the cost of profitability in the short term<\/strong>.<\/p>\n\n\n\n<p>At the heart of this strategic realignment lies&nbsp;<strong>Blinkit<\/strong>\u2014Zomato\u2019s quick commerce arm\u2014commanding the spotlight as it&nbsp;<strong>overtakes the legacy food delivery business<\/strong>&nbsp;in both&nbsp;<strong>order value and user growth<\/strong>. Let&#8217;s break down what this shift means for the business, its investors, and India\u2019s fast-evolving consumer economy.<\/p>\n\n\n\n<p><strong>Blinkit Becomes the Star Performer<\/strong><\/p>\n\n\n\n<p>1.&nbsp;<strong>Breakneck Revenue Growth<\/strong><\/p>\n\n\n\n<p>For the first time in its operating history,&nbsp;<strong>Blinkit&#8217;s quarterly revenue hit \u20b92,400 crore<\/strong>, which now&nbsp;<strong>exceeds Zomato\u2019s food delivery arm<\/strong>. In percentage terms, Blinkit\u2019s revenue more than doubled year-over-year, clocking an&nbsp;<strong>astonishing 127% growth in Net Order Value (NOV)<\/strong>.<\/p>\n\n\n\n<p>To put this into perspective: this means Blinkit&#8217;s share in the overall business has grown so significantly that it has now&nbsp;<strong>redefined Zomato (Eternal\u2019s) core identity<\/strong>\u2014from a food delivery platform to a full-fledged&nbsp;<strong>hyperlocal delivery business<\/strong>. The pivot is no longer speculative; it\u2019s happening in real time.<\/p>\n\n\n\n<p>2.&nbsp;<strong>User Momentum: Fast and Furious<\/strong><\/p>\n\n\n\n<p>Another key highlight is Blinkit\u2019s meteoric rise in&nbsp;<strong>Monthly Transacting Users (MTUs)<\/strong>. The platform\u2019s MTUs rose from&nbsp;<strong>13.7 million in Q4 FY25<\/strong>&nbsp;to&nbsp;<strong>16.9 million in Q1 FY26<\/strong>\u2014a jump of nearly&nbsp;<strong>4.2 million additional users in just three months<\/strong>.<\/p>\n\n\n\n<p>This unprecedented growth is fueled by increasing demand for quick delivery of essentials across metros, tier-1, and even tier-2 cities. Urban India is becoming&nbsp;<strong>habitually dependent on hyper-convenience<\/strong>, and Blinkit seems to be riding that wave better than anyone else.<\/p>\n\n\n\n<p>3.&nbsp;<strong>Dark Stores Expansion: Laying the Infrastructure<\/strong><\/p>\n\n\n\n<p>To fulfill this explosive demand, Blinkit\u2019s operational backend is undergoing&nbsp;<strong>rapid-fire expansion<\/strong>. The number of&nbsp;<strong>dark stores (fulfillment centers)<\/strong>&nbsp;grew from&nbsp;<strong>639 at the end of Q1 FY25<\/strong>&nbsp;to&nbsp;<strong>1,504 at the end of Q1 FY26<\/strong>. That\u2019s a&nbsp;<strong>135% increase in store count in one year<\/strong>.<\/p>\n\n\n\n<p>This aggressive expansion is capital-intensive but strategic. These dark stores\u2014small, city-based warehousing units designed for 10\u201320 minute deliveries\u2014are what enable Blinkit to do what traditional e-commerce can\u2019t:&nbsp;<strong>micro-fulfill consumer needs almost instantly.<\/strong><\/p>\n\n\n\n<p>Management targets include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>2,000 dark stores by December 2025<\/strong><\/li>\n\n\n\n<li><strong>Visibility up to 3,000 stores in the long run<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This aggressive geographical scaling is key to brand stickiness, customer retention, and wallet capture across demographics.<\/p>\n\n\n\n<p><strong>Zomato&#8217;s Food Delivery Business: Still Strong But Losing Spotlight<\/strong><\/p>\n\n\n\n<p>While Blinkit soars, Zomato\u2019s traditional&nbsp;<strong>food delivery segment remains solid<\/strong>, albeit&nbsp;<strong>overshadowed by the rapid pace of Blinkit\u2019s growth<\/strong>.<\/p>\n\n\n\n<p>1.&nbsp;<strong>Steady but Slower Growth<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Food delivery revenue grew 16% YoY<\/strong>, which on its own is a respectful figure.<\/li>\n\n\n\n<li>However, compared to Blinkit\u2019s 127% order value growth, food delivery now appears&nbsp;<strong>mature and stable<\/strong>, not high-growth.<\/li>\n<\/ul>\n\n\n\n<p>This is not to say that the food delivery business is in decline\u2014it still contributes positively to adjusted EBITDA and continues to grow steadily. However, it\u2019s becoming increasingly clear that&nbsp;<strong>Zomato\u2019s growth will now be driven by quick commerce<\/strong>, and food delivery will serve as the&nbsp;<strong>profit cushion<\/strong>&nbsp;to support that expansion.<\/p>\n\n\n\n<p>2.&nbsp;<strong>High Customer Retention, But Margin Constrained<\/strong><\/p>\n\n\n\n<p>Food delivery enjoys&nbsp;<strong>high customer familiarity and market maturity<\/strong>, but rising delivery costs, significant discounts, and competitive pricing strategies keep margins tight.<\/p>\n\n\n\n<p>The Surprise: 90% Profit Crash\u2014What Happened?<\/p>\n\n\n\n<p>The Numbers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Q1 FY26 Net Profit: \u20b925 crore<\/li>\n\n\n\n<li>Q1 FY25 Net Profit: \u20b9276 crore<br>\u27a1\ufe0f&nbsp;<strong>Decline: 90% YoY<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This mind-numbing decline caught many by surprise\u2014especially after such robust revenue growth.<\/p>\n\n\n\n<p>What Caused the Decline?<\/p>\n\n\n\n<p>1.&nbsp;<strong>Heavy Investments in Blinkit<\/strong><\/p>\n\n\n\n<p>Blinkit is an&nbsp;<strong>inventory-led<\/strong>&nbsp;business in its current form. Unlike marketplace models in e-commerce, Blinkit&nbsp;<strong>owns or stocks the inventory in its dark stores<\/strong>, which means&nbsp;<strong>higher working capital<\/strong>, storage expenses, spoilage risks, and operational complexities.<\/p>\n\n\n\n<p>This business model, while beneficial for&nbsp;<strong>faster fulfillment and quality control<\/strong>, requires&nbsp;<strong>enormous cash outlays<\/strong>, especially when you scale from 600 to 1,500+ stores in a short time frame.<\/p>\n\n\n\n<p>2.&nbsp;<strong>Rising Competitive Intensity<\/strong><\/p>\n\n\n\n<p>Players like\u00a0<strong>Swiggy Instamart<\/strong>,\u00a0<strong>ZEPTO<\/strong>, and even\u00a0<strong>Amazon Fresh<\/strong>\u00a0are making lives harder for Blinkit. In order to maintain its market leadership, Blinkit is:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Offering aggressive incentives to customers<\/li>\n\n\n\n<li>Offering better take rates to brands<\/li>\n\n\n\n<li>Investing in higher-tech dark stores<\/li>\n\n\n\n<li>Expanding deeper into suburban geographies<\/li>\n<\/ul>\n\n\n\n<p>All of this adds up to&nbsp;<strong>rising operating expenditure (OPEX)<\/strong>&nbsp;without immediate payoff.<\/p>\n\n\n\n<p>3.&nbsp;<strong>New Accounting Treatments<\/strong><\/p>\n\n\n\n<p>CEO Deepinder Goyal briefly acknowledged that a portion of the year-on-year profit drop was due to&nbsp;<strong>changes in accounting practices<\/strong>&nbsp;and&nbsp;<strong>ESOP-based expenses<\/strong>. These non-operational cost factors diluted the bottom line without necessarily harming core business strength.<\/p>\n\n\n\n<p>Contribution of Hyperpure and Other Verticals<\/p>\n\n\n\n<p>Zomato-owned Hyperpure \u2014 their B2B platform that sells ingredients to restaurants \u2014 continues to grow but remains a&nbsp;<strong>smaller piece of the business pie<\/strong>. Hyperpure contributed an estimated&nbsp;<strong>10\u201312% to overall revenues<\/strong>&nbsp;but isn&#8217;t yet competing for investor attention compared to Blinkit or food delivery.<\/p>\n\n\n\n<p>Zomato Pro and Gold\u2014loyalty-based services\u2014also remain in the background, shoring up occasional user traffic and cross-selling benefits within the ecosystem.<\/p>\n\n\n\n<p><strong>The Shift in Strategic Thinking<\/strong><\/p>\n\n\n\n<p>Blinkit&#8217;s emergence as the leading business vertical is reshaping the company&#8217;s internal KPIs and shareholder narrative. Here are the&nbsp;<strong>clear markers of a radical pivot by Zomato<\/strong>:<\/p>\n\n\n\n<p>1.&nbsp;<strong>From Food Delivery to Hyperlocal Commerce<\/strong><\/p>\n\n\n\n<p>With Blinkit now exceeding legacy food delivery in both user counts and order values, Eternal Limited is&nbsp;<strong>no longer just a restaurant aggregator or a food delivery company<\/strong>. It is now a&nbsp;<strong>quick commerce and last-mile logistics innovator<\/strong>.<\/p>\n\n\n\n<p>2.&nbsp;<strong>From Profit Seeking to Market Domination<\/strong><\/p>\n\n\n\n<p>The 90% profit decline is not indicative of poor performance\u2014it\u2019s a price being paid for&nbsp;<strong>potential monopoly<\/strong>&nbsp;in India&#8217;s highest-growth sector. Eternal is choosing to&nbsp;<strong>burn profits today<\/strong>&nbsp;in order to secure&nbsp;<strong>defensible long-term advantages<\/strong>&nbsp;in the quick commerce race.<\/p>\n\n\n\n<p><strong>What Does the Market Think? Investor Sentiment &amp; Stock Reaction<\/strong><\/p>\n\n\n\n<p>Despite the 90% drop in profits, the stock market responded&nbsp;<strong>positively<\/strong>&nbsp;to Zomato\u2019s Q1 FY26 results.&nbsp;<strong>The share price rose more than 7% post-results<\/strong>, indicating that investors have&nbsp;<strong>bought into the Blinkit story<\/strong>.<\/p>\n\n\n\n<p>This reflects long-term confidence in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Blinkit\u2019s unit-level metrics approaching break-even<\/li>\n\n\n\n<li>Food delivery remaining cash-positive<\/li>\n\n\n\n<li>First-mover advantage in quick commerce infrastructure<\/li>\n<\/ul>\n\n\n\n<p>Institutional investors appear aligned with CEO Deepinder Goyal\u2019s long-term thesis: that&nbsp;<strong>quick commerce is the future of urban consumer behavior<\/strong>, and that Zomato (Eternal) is best positioned to capture it.<\/p>\n\n\n\n<p>Key Challenges &amp; Concerns<\/p>\n\n\n\n<p>While things look bright, here are the key risks in Zomato\u2019s horizon:<\/p>\n\n\n\n<p>1.&nbsp;<strong>High-Risk Inventory Strategy<\/strong><\/p>\n\n\n\n<p>Owning inventory is capital intensive. Spoilage, pilferage, and unsold stock are brutal realities in FMCG logistics. The inventory-led model gives Blinkit speed but not agility.<\/p>\n\n\n\n<p>2.&nbsp;<strong>Looming Competition<\/strong><\/p>\n\n\n\n<p>Big players like&nbsp;<strong>Swiggy Instamart<\/strong>,&nbsp;<strong>Zepto<\/strong>,&nbsp;<strong>Dunzo<\/strong>, and&nbsp;<strong>Amazon Fresh<\/strong>&nbsp;are well-funded and hyper-aggressive. Price wars, delivery time races, app loyalty programs\u2014competition is fierce, and sustainability is key.<\/p>\n\n\n\n<p>3.&nbsp;<strong>Burn vs. Breakeven<\/strong><\/p>\n\n\n\n<p>Despite nearing breakeven at store levels,&nbsp;<strong>consolidated Blinkit adjusted EBITDA still remains challenged<\/strong>. Investors will need to show patience as Blinkit balances&nbsp;<strong>scale with sustainable margins<\/strong>.<\/p>\n\n\n\n<p>What&#8217;s Next for Zomato (Eternal) and Blinkit?<\/p>\n\n\n\n<p>According to the management:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Blinkit growing at&nbsp;<strong>80\u2013100% YoY<\/strong>&nbsp;is expected to continue for the next few quarters<\/li>\n\n\n\n<li>New dark store penetration will accelerate, especially in Tier 2 and 3 cities<\/li>\n\n\n\n<li>Focus will remain on optimizing delivery time per kilometer and enhancing shopper experience<\/li>\n\n\n\n<li>Profitability targets are pushed beyond FY26 to FY27 or even FY28 as expansion continues<\/li>\n<\/ul>\n\n\n\n<p>Well-funded, deeply embedded in urban habit loops, and ahead in fulfillment infrastructure\u2014Blinkit is betting big on the future of instant gratification.<\/p>\n\n\n\n<p>Conclusion: A High-Stakes Bet on the Future of Commerce<\/p>\n\n\n\n<p>Zomato\u2019s Q1 FY26 results are not just an earnings report\u2014they\u2019re a declaration of intent. With the rebranding to Eternal Limited and Blinkit\u2019s meteoric rise, the company is betting billions on reorienting from online food delivery to an economy of&nbsp;<strong>everything-now<\/strong>\u2014delivered in&nbsp;<strong>minutes<\/strong>.<\/p>\n\n\n\n<p>While profits suffer temporarily, long-term business moats are being built through infrastructure, user base, and customer loyalty in the high-frequency FMCG space.<\/p>\n\n\n\n<p>The game has shifted. It\u2019s fast-paced, capital-intensive, and fiercely competitive\u2014but if Blinkit succeeds, Zomato stands to&nbsp;<strong>reshape commerce in India<\/strong>&nbsp;as we know it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a quarter defined by aggressive strategic transformations and market reorientation, Zomato\u2014now officially rebranded as&nbsp;Eternal Limited\u2014has reported its financial results 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