Eternal's Q1 revenue zooms 70%. But profit plunges 90%.

The company posted a 70 per cent jump in revenue for the June quarter, yet net profit nearly disappeared, crashing 90 per cent year-on-year. Turns out, chasing ultra-fast growth in quick commerce might be a little too quick for comfort.

Q1 FY26 results snapshot

That massive revenue spike? Mostly thanks to Blinkit, which has been clocking rapid order growth. But the flipside: scaling that fast is expensive. Warehouses, riders, infrastructure—it all eats into margins.

Why profits took a hit

• Blinkit’s burn: Blinkit is growing like wildfire, but the costs are blazing too. Its 10-minute promise doesn’t come cheap.
• Marketing push: The company doubled down on ads and brand-building, especially for its ‘going out’ and hyperlocal verticals.

How’s the stock reacting?

Despite the profit dip, the market cheered the revenue figure. Eternal’s stock popped nearly 7 per cent intraday post-results, suggesting investors are still buying the growth story – literally.

About the company

Eternal Ltd, formerly Zomato, now acts as the parent company of two big brands: Zomato (food delivery) and Blinkit (quick commerce). It also dabbles in ticketing and dining-out services. Essentially, it wants to own your wallet every time you step out or order in.

The takeaway

Eternal’s Q1 FY26 report card is a mixed bag: soaring revenues, crumbling profits. It’s trying to buy growth now in hopes of cashing in later. Will the market continue to reward that? Only if Blinkit learns to run fast, without burning through too much fuel.

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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy 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.