Eternal April-June Net Profit Slumps 90% Despite Strong Revenue Growth

Eternal Ltd., formerly Zomato, posted a 90% on-year fall in its consolidated net profit to ₹250 million for the June quarter, dragged by a sharp jump in expenses. Revenue, however, rose 70% on year to ₹71.67 billion, hitting a four-quarter high.

Operating costs surged 77% on year to ₹74.33 billion, led by a 2.3x jump in purchase of stock-in-trade to ₹25.57 billion, the biggest contributor at 34% of total expenses. Delivery costs rose 41% to ₹18.69 billion due to fewer available partners, which weighed on margins. Other expenses more than doubled to ₹13.98 billion, partly due to capex on new quick-commerce stores and warehouses.

Depreciation and amortisation expenses doubled to ₹3.14 billion, further hurting the bottom line. Adjusted EBITDA dropped 42% on year to ₹1.72 billion.

Segment highlights:
Food delivery revenue rose to ₹22.61 billion from ₹19.42 billion, backed by a 16% rise in gross order value to ₹107.69 billion. Margins improved to 4.2% from 3.4%.

Quick commerce revenue jumped to ₹24.00 billion from ₹9.42 billion, with net order value up 2.3x to ₹92.03 billion. Eternal added 243 Blinkit stores, taking the total to 1,544, and expects margins to improve as newer stores mature.

Hyperpure revenue grew 89% on year to ₹22.95 billion but is expected to decline in the coming quarters.

Eternal’s consolidated cash stood at ₹188.6 billion as of Jun. 30. The board also approved setting up a wholly-owned subsidiary, Blinkit Foods Ltd., for food preparation, sale, and delivery services.