Zomato parent Eternal's net profit jumps 73% to Rs 102 crore in Q3 FY26; revenue rises 202%

Eternal Limited, formerly known as Zomato, reported strong growth in revenue and profit for the third quarter of FY26. The performance was mainly driven by the rapid expansion of its inventory-led quick commerce business Blinkit and a change in revenue recognition after moving to an inventory ownership model.

The Gurugram-based foodtech and quick commerce company reported a consolidated net profit of Rs 102 crore for Q3 FY26, compared with Rs 59 crore in the same quarter last year. This represents a year-on-year increase of about 73%.

Revenue from operations rose sharply to Rs 16,315 crore in Q3 FY26 from Rs 5,405 crore in Q3 FY25, an increase of around 202% year-on-year. On a quarter-on-quarter basis, revenue increased 20% from Rs 13,590 crore in Q2 FY26.

The company said the sharp rise in reported revenue was largely due to its shift to inventory ownership in quick commerce. Under this model, revenue now includes the full value of goods sold instead of only marketplace commissions. On a like-for-like basis, adjusted revenue grew 64% year-on-year. Blinkit was the largest contributor to growth during the quarter.

Revenue from Blinkit increased significantly to Rs 12,256 crore in Q3 FY26 from Rs 1,399 crore a year earlier, mainly due to the accounting change and scale expansion. Net order value in the quick commerce segment grew 121% year-on-year, despite GST-related changes and seasonal factors. On a like-for-like basis, net order value grew around 130%.

During the quarter, Eternal added 211 net new Blinkit stores, taking the total store count to 2,027. This was slightly below the company’s earlier guidance of around 2,100 stores.

For the first time on a quarterly basis, Blinkit reported a positive adjusted EBITDA. The segment posted an adjusted EBITDA profit of Rs 4 crore in Q3 FY26, compared with an adjusted EBITDA loss of Rs 156 crore in the previous quarter. The adjusted EBITDA margin for Blinkit, measured as a percentage of net order value, turned positive.

The food delivery business, which continues to operate under the Zomato brand, contributed about 16% of total revenue during the quarter. Revenue from food delivery grew 29% year-on-year to Rs 2,676 crore.

Gross order value for the segment increased around 21% year-on-year, while net order value grew about 17%, marking the second consecutive quarter of acceleration.

The adjusted EBITDA margin for the food delivery business reached an all-time high of 5.4% of net order value. Adjusted EBITDA for the segment stood at Rs 531 crore, up 26% year-on-year.

Hyperpure, the company’s B2B restaurant supply business, reported steady growth. Revenue increased 33% year-on-year and 7% quarter-on-quarter to Rs 1,070 crore. The segment reported an adjusted EBITDA profit of Rs 1 crore, its first positive quarterly EBITDA, compared with a loss of Rs 5 crore in the previous quarter.

The going-out business recorded net order value growth of about 20% year-on-year. However, continued investments in category creation impacted profitability. The segment reported an adjusted EBITDA loss of Rs 121 crore, with margins at minus 4.7%.

For the nine months ended December 31, 2025, Eternal reported consolidated total income of Rs 38,126 crore. Revenue from operations for the same period stood at Rs 37,072 crore.

Rising scale led to a sharp increase in costs during the quarter. Total expenditure increased to Rs 16,493 crore in Q3 FY26 from Rs 5,533 crore a year earlier. Cost of materials and stock-in-trade, reflecting the inventory-led model, rose to about Rs 9,801 crore and accounted for roughly 59% of total expenses.

Delivery and related charges increased 64% year-on-year to Rs 2,376 crore. Employee benefit expenses rose 33% to Rs 914 crore, while advertising and marketing expenses increased to Rs 937 crore from Rs 521 crore last year.

Consolidated adjusted EBITDA increased 28% year-on-year to Rs 364 crore and rose 63% compared with the previous quarter.

The company’s cash balance declined to Rs 17,820 crore at the end of Q3 FY26, mainly due to planned capital expenditure and working capital investments in the quick commerce business.

Along with the earnings announcement, Eternal informed stock exchanges about a leadership change. Founder Deepinder Goyal resigned as Managing Director and CEO with effect from February 1, 2026.

The board has recommended his appointment as Vice Chairman and Director, subject to shareholder approval.

Albinder Singh Dhindsa, who currently leads Blinkit, has been appointed CEO of Eternal Limited with effect from February 1, 2026.