The profit drop, however, was offset by strong top-line growth. Revenue from operations surged 70% YoY to Rs 7,167 crore, driven by robust performance in the quick commerce and food delivery segments.
Profit hit by investments in quick commerce and going-out segments
Akshant Goyal, CFO of Zomato, said the fall in profitability was mainly due to continued investments in quick commerce and the going-out vertical. Consolidated adjusted EBITDA dropped 42% YoY to Rs 172 crore, although food delivery EBITDA margin improved to 5.0% from 3.9% a year earlier.
The company said net order value (NOV) of its B2C businesses grew 55% YoY and 16% sequentially to Rs 20,183 crore. For the first time, quick commerce NOV surpassed food delivery NOV for a full quarter.
“On an annualised basis, we are now at nearly $10 billion in NOV across our B2C businesses, with quick commerce becoming our largest segment—contributing almost half of the annualised NOV,” Eternal said in its shareholder letter.
Adjusted revenue rose 67% YoY and 22% quarter-on-quarter (QoQ) to Rs 7,563 crore. Meanwhile, B2B unit Hyperpure posted 89% YoY revenue growth, though management expects a near-term slowdown in this segment.Also Read: 7 Nifty500 stocks with highest dividend yields. Do you own any?
Should you buy, sell, or hold Eternal’s stock? Here’s what brokerages say:
Motilal Oswal
MOSL maintained a ‘Buy’ rating and raised the target price to Rs 330 from Rs 310.
The brokerage said quick commerce losses are stabilizing and Blinkit’s strong growth—GOV up 140% YoY—is driving momentum. However, PAT missed estimates (Rs 25 crore vs Rs 270 crore expected). Despite this, MOSL expects 2QFY26 revenue and adjusted EBITDA to grow 66% and 15% YoY, respectively.
Elara
Elara also retained a ‘Buy’ call, raising the target price to Rs 340 from Rs 300.
It highlighted food delivery GOV hitting a three-quarter high and projected margins growing at 19.2% CAGR from FY25–28E. Elara raised revenue estimates by 3.5–6% on quick commerce strength but cut EPS forecasts by 4–17% over FY25–28E due to losses in other segments.
Nuvama
Nuvama raised its target price to Rs 320 from Rs 290 while maintaining a ‘Buy’ rating.
It revised FY26E and FY27E earnings upward by 1.4% and 8.4%, respectively, and pointed to Blinkit’s profitability and inventory-led model as margin drivers. Management expects margin gains ahead, assuming stable market competition.
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(Disclaimer: Recommendations, sugestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
