Eternal (formerly Zomato) reported a 77.7% decline in profit for the March 2025 quarter, but revenue increased by 63.8%. Blinkit's expansion and rising costs contributed to the increased losses.
Eternal Q4 Results: Eternal, formerly known as Zomato, has announced its results for the March 2025 quarter. The company reported a 77.7% decrease in profit compared to the same quarter last year. Eternal's consolidated net profit was only ₹39 crore this quarter, compared to ₹175 crore last year.
However, the company's operational revenue increased. This quarter, the company's revenue grew by 63.8% to ₹5833 crore, compared to ₹3562 crore last year. The company's expenses also increased to ₹6014 crore, a 67.88% rise from the same quarter last year.
Reasons for the Loss:
Several factors contributed to this loss. The most significant reason is the increased investment in the company's quick commerce division, Blinkit. Blinkit's expansion led to rising costs, resulting in reduced profitability.
Eternal's CFO, Akshant Goyal, stated that the consolidated EBITDA decreased by 15% to ₹165 crore. Despite this decline, the food delivery sector showed improvement, with EBITDA margins increasing from 3.8% last year to 5.2%.
Blinkit Growth, but Increased Losses:
The company's quick commerce arm, Blinkit, saw significant growth this quarter. Blinkit's revenue increased by 122% to ₹1709 crore, compared to ₹769 crore in the same quarter last year. Furthermore, the company opened 75 new stores, bringing the total number of stores to 526. However, this rapid expansion led to an increase in Blinkit's EBITDA loss to ₹178 crore.
Next Steps:
Following the announcement of the quarterly results, market action on Eternal's shares is expected on Friday. When the market closed on Wednesday, the company's share price was up 0.62% at ₹232.52. However, investor reaction to the quarterly results is now anticipated.
