Eternal Q2 FY26 Results: Profit Drops 63%, Revenue Surges

Eternal Ltd (formerly Zomato), parent of Zomato and Blinkit, posted its Q2 FY26 results on October 16, showing a sharp 63% year-on-year decline in net profit despite a significant rise in revenue. 

While total revenue nearly tripled, escalating expenses and losses from the quick commerce arm Blinkit weighed on the company’s profitability.

Eternal Revenue Growth Driven by Operations

Eternal’s total revenue from operations rose 183% YoY to ₹13,590 crore in Q2 FY26, up from ₹4,799 crore in the year-ago period. Sequentially, revenue improved from ₹7,167 crore in Q1 FY26. The growth was fueled by the food delivery business as well as the rapid expansion of Blinkit, its quick commerce platform.

Eternal Profitability Takes a Hit

Net profit after tax (PAT) for the quarter dropped 63% YoY to ₹65 crore, down from ₹176 crore in Q2 FY25. In comparison, the previous quarter saw a profit of ₹25 crore. The decline in profitability came amid higher expenses and increased investments in growth initiatives.

Costs and Expenses

Total expenses rose 188% YoY to ₹13,813 crore, compared with ₹4,783 crore in the same quarter last year and ₹7,433 crore in Q1 FY26. The increase largely reflects operational costs, marketing, and the costs of expanding Blinkit’s dark store network.

Food Delivery Business

The food delivery segment recorded adjusted revenue of ₹2,863 crore, up 22% YoY from ₹2,340 crore. Sequentially, the segment grew from ₹2,657 crore in the previous quarter, indicating continued recovery and traction in the core delivery business.

Blinkit Quick Commerce

Blinkit reported an EBITDA loss of ₹156 crore for Q2 FY26, up from a loss of ₹8 crore in the year-ago period, driven by aggressive expansion of dark stores. Sequentially, the adjusted EBITDA loss improved slightly from ₹162 crore in Q1 FY26, suggesting early signs of operational stabilisation.

Cash Position

The company ended the quarter with ₹18,314 crore in cash, slightly lower than ₹18,857 crore in Q1 FY26, maintaining a strong liquidity position to support growth initiatives.

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Conclusion

Eternal Ltd’s Q2 FY26 results highlight the tension between rapid growth and profitability. While revenue has surged across both food delivery and quick commerce, rising operational costs and Blinkit’s expansion continue to weigh on net profits. Investors may watch upcoming quarters to gauge the company’s path toward sustainable profitability.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.