Zomato Share: Eternal (formerly Zomato) share price surged as much as 14.55 per cent in early trade on July 22 to hit a lifetime high of Rs 311.25 per share. The rally came after the company’s Q1 FY26 earnings announcement, which was released during market hours in the previous session.
On July 21, the stock had already gained 5.6 per cent as investors reacted positively to the earnings. Including today’s gains, Eternal’s shares have surged 21 per cent over the past two sessions.
Eternal Results Q1 FY26
The operator of food delivery aggregator Zomato and quick commerce app Blinkit reported a consolidated net profit of Rs 25 crore for Q1 FY26, a sharp fall of 90 per cent from Rs 253 crore in same quarter last year (Q1 FY25). Its consolidated revenue from operations for the quarter came in at Rs 7,167 crore, up 70 per cent from previous year’s Rs 4,206 crore.
On a sequential basis, revenue increased 23 per cent from Rs 5,833 crore in Q4 FY25, while net profit fell 36 per cent from Rs 39 crore.
The company said the sharp fall in profits was due to continued investments in its fast-growing quick commerce and going-out businesses.
On a standalone basis, however, Eternal’s net profit grew 28 per cent year-on-year (YoY) to Rs 602 crore, up from Rs 470 crore in the previous year. On a quarter-on-quarter (QoQ) basis, profit rose 4.7 per cent from Rs 575 crore in Q4 FY26.
Revenue from operations grew 17.8 per cent YoY to Rs 2,413 crore, compared to Rs 2,048 crore in the year-ago period. On a QoQ basis, revenue increased 10 per cent from Rs 2,192 crore in the previous quarter.
Blinkit Beats Zomato For The First Time In NOV Terms
Blinkit surpassed Zomato in terms of net order value (NOV) for the first time. Its NOV grew 127 per cent YoY to Rs 9,203 crore in Q1 FY26. This was higher than Zomato’s food delivery NOV, which stood at Rs 8,967 crore. Zomato’s food delivery NOV dipped to 13 per cent from 14 per cent a year ago.
NOV for the company’s overall B2C businesses rose 55 per cent YoY to Rs 20,183 crore, and of this Blinkit contributed nearly half of that. “This was the first quarter where our quick commerce NOV exceeded food delivery NOV for the full quarter,” said CFO Akshant Goyal. He added, “On an annualised basis, we are now at almost $10 billion of annual NOV across our B2C businesses.”
Food Delivery Growth Begins To Plateau
The food delivery business grew at a slower pace with NOV up 13 per cent YoY, as against 14 per cent in the previous quarter. CEO Deepinder Goyal said growth likely bottomed out in Q1. “For FY26, it looks unlikely that the business will deliver a 20%+ NOV growth but we should be north of 15% and hopefully trending towards 20% YoY growth in FY27.”
“We saw a QoQ increase in restaurant funded discounts in Q1FY26, which led to the slightly lower NOV growth vis-à-vis GOV (Gross Order Value) growth during the quarter,” Goyal added.
NOV is a key financial metric used to measure the actual revenue a business generates from customer orders after accounting for discounts.
Explaining further, he said, “We expect such quarterly fluctuations to be a regular feature as restaurants calibrate their investments in discounts in response to changes in the demand environment.”
Going forward, Eternal will stop disclosing GOV figures, as Akshant noted, “We believe that NOV is a better measure of growth in our B2C businesses including food delivery.”
Margins, too, saw seasonal pressure. “Every year in Q1, margins get impacted because of lower availability of delivery partners due to festivals and adverse weather,” Goyal said, adding that as margins mature, such fluctuations are likely.
Swiggy, Info Edge Share Prices Jump
Eternal’s rival Swiggy’s share price also surged nearly 8 per cent in early trade to hit a five-month high of Rs 426.30 apiece on the NSE. In the previous session, it had climbed 1.5 per cent.
Info Edge, which holds a 12.38 per cent stake in Eternal, as per the latest shareholding data, also gained up to 4.7 per cent to hit an intraday high of Rs 1,465.70 apiece on the NSE.
