Eternal Share Price in Focus on May 2; Q4 FY25 Profit Falls Despite Revenue Surge

Food delivery platform Eternal (formerly Zomato) reported a year-on-year (YoY) decline in net profit to ₹39 crore for the March 2025 quarter, even as its revenue from operations surged YoY to ₹5,833 crore from ₹3,562 crore.  

Post the announcement, on May 2, 2025, Eternal share price opened at ₹220.05, down from its previous close of ₹232.52. At 9:33 AM, the share price of Eternal was trading at ₹235.81, up by 1.41% on the NSE. 

Surge in Expenses Pressures Bottom Line 

Total expenses for the quarter stood at ₹6,104 crore, marking an increase YoY from ₹3,636 crore. This spike was mainly due to higher infrastructure spending and increased investments in Blinkit, Eternal’s quick commerce vertical. As a result, adjusted EBITDA declined by 15% YoY to ₹165 crore for the quarter. 

Stable Growth in Core Food Delivery 

Eternal’s core food delivery business remained resilient, with Gross Order Value (GOV) rising to ₹8,439 crore, showcasing 16% growth YoY. The adjusted EBITDA margin for the segment improved to 4.4% (as of % of GOV) and 5.2% as of % of NOV. 

Blinkit Sees Rapid Growth Amid Rising Losses 

Blinkit delivered a standout performance in Q4, with revenue increasing 122% YoY to ₹1,709 crore. The company added 75 new Blinkit stores, taking the total to 526 stores across 26 cities. 

However, the aggressive expansion came at a cost. Adjusted EBITDA loss for Blinkit widened to ₹178 crore. CEO Albinder Dhindsa noted that the company had pulled forward several store launches originally slated for FY26, aiming to stay ahead of competition. 

Hyperpure Narrows Losses 

Eternal’s B2B segment, Hyperpure, posted a 93% YoY growth in revenue to ₹1,840 crore. The adjusted EBITDA loss grew to ₹22 crore from ₹19 crore in the previous quarter. The company reiterated its long-term commitment to Hyperpure and expects margin improvement with scale. 

Zomato to Shut Down Quick and Everyday Initiatives 

Zomato CEO Deepinder Goyal confirmed that the company is shutting down its experimental services, Zomato Quick and Zomato Everyday, due to lack of a clear path to profitability without compromising customer experience. 

Zomato Quick, which promised 10-minute deliveries, was hindered by inadequate restaurant density and kitchen infrastructure. Goyal noted that this led to inconsistent customer experiences and no significant increase in demand, making the service unsustainable. 

Similarly, Zomato Everyday, which focused on delivering homely meals, found limited demand, especially confined to office locations in metro cities. The company didn’t see sufficient return on investment (ROI) to justify continuing the initiative at a small scale. 

Food Delivery Growth Below Expectations 

The overall food delivery business at Zomato has been underperforming, and Goyal outlined three primary reasons for the current slowdown: 

• Sluggish demand in the broader economy, especially for discretionary spending like online food orders. 

• Temporary shortage of delivery partners, driven by high demand in the rapidly growing quick commerce segment. 

• Rising competition from quick delivery platforms offering packaged food, which has eaten into restaurant food delivery demand. 

Additional Factors Affecting Q4FY25 Growth 

Two more specific developments impacted the company’s Q4 performance: 

• Delisting of 19,000 restaurants from the Zomato platform. These restaurants were removed for reasons such as: 

• Poor hygiene based on severe customer complaints. 

• Mimicking well-known brands and misleading customers. 

• Operating duplicate listings to manipulate visibility. 

While this decision temporarily affected order volumes, Zomato believes it was necessary to protect consumer trust and improve platform quality. 

Also Read: Eternal (Zomato) Leadership Exit! 

Conclusion 

Eternal’s March 2025 quarter results reflect a mixed performance marked by top-line growth but pressure on profitability. While the core food delivery segment remained stable and Blinkit posted revenue growth, investments and rising costs weighed on the bottom line. 

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