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Eternal, the parent company of Zomato and Blinkit, began May on a challenging note. Following the release of its Q4 FY25 earnings, the company's stock experienced a significant decline, reflecting investor concerns over profitability and heightened competition.
What's happening?
On May 2, 2025, Eternal's stock opened at ₹222.00 on the BSE, down from the previous close of ₹232. The share price reached a low of ₹220 during intraday trading.
This downturn followed the company's Q4 FY25 results, which reported a 78% year-on-year drop in consolidated net profit to ₹39 crore. Despite a 64% increase in revenue to ₹5,833 crore, the sharp decline in profit raised concerns among investors.
Eternal key financial metrics (Q4 FY25)
| Metric | Q4 FY25 | Q4 FY24 | Change (%) |
|---|---|---|---|
| Revenue from operations (₹ Cr) | 5833 | 3562 | 64% |
| Net profit (₹ Cr) | 39 | 175 | -78% |
| Adjusted EBITDA (₹ Cr) | 165 | 194 | -15% |
Reasons behind the decline: Investments and competition
Eternal attributed the profit slump to substantial investments in expanding its quick commerce segment, Blinkit. The company added 294 new stores in Q4, its highest-ever quarterly addition, aiming to reach 2,000 stores by December 2025.
However, this aggressive expansion led to increased operational costs. Additionally, the quick commerce sector is witnessing intensified competition from players like Flipkart and Amazon, further pressuring margins.
Final takeaway
Eternal's recent share price dip underscores the challenges of balancing aggressive growth strategies with profitability. While the company's long-term prospects in the food delivery and quick commerce sectors remain promising, investors should approach with cautious optimism, keeping an eye on future earnings and market dynamics.
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Disclaimer : This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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