Eternal Q4 Results 2025: Net Profit Plunges 78% YoY
Formerly Zomato, the company saw its profit dip sharply amid aggressive expansion of Blinkit and infrastructure upgrades
Eternal Q4 Results 2025: In its Q4 results for the financial year 2024-25, Eternal Ltd (formerly known as Zomato) posted a sharp 77.7% year-on-year decline in consolidated net profit, down to ₹39 crore from ₹175 crore in the same quarter last year. However, in a striking contrast, the company recorded a robust 63.8% jump in operational revenue, which came in at ₹5,833 crore compared to ₹3,562 crore in Q4FY24.
The contrasting figures reflect the company’s ongoing transformation and aggressive investments in growth, particularly in its quick commerce arm, Blinkit.
Sequential Performance: Margins Under Pressure
Compared to Q3FY25, the company’s net profit was also down by 34% from ₹59 crore. However, revenue increased sequentially by 8% over ₹5,405 crore posted in the December quarter, highlighting sustained topline momentum even as bottom-line performance remained under pressure.
Key Reason: Investment-Led Profit Compression
The steep decline in profit was largely attributed to escalating investments in infrastructure and expansion of Blinkit stores. Eternal added 294 net new stores in Q4FY25 — the highest ever in a single quarter. Combining Q3 and Q4, the company has now opened 510 new stores, which accounts for nearly 40% of its total store network of 1,301 outlets.
To support this scale-up, the company also added 1 million square feet of warehousing space, significantly adding to operating costs.
Financial Performance Snapshot
| Particulars | Q4FY25 | Q4FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹5,833 crore | ₹3,562 crore | +63.8% |
| Net Profit | ₹39 crore | ₹175 crore | -77.7% |
| Sequential Net Profit (vs Q3FY25) | ₹39 crore | ₹59 crore | -34% |
| Adjusted EBITDA | ₹165 crore | ₹194 crore | -15% YoY |
| Adjusted EBITDA Margin (Food Delivery) | 5.2% | 3.8% | +140 bps |
| Gross Order Value (GOV) Growth | – | – | +16% YoY |
| Blinkit Net New Stores (Q4FY25) | 294 | – | Highest Ever |
| Blinkit Contribution Margin | 3.9% | 3.8% | +0.1% |
Blinkit Expansion Strategy: A Long-Term Bet
Albinder Dhindsa, CEO of Blinkit, emphasized the long-term growth potential from Blinkit’s ongoing store expansion. While nearly 40% of the stores are still underutilized, the leadership sees these as strategic investments that will unlock scale efficiencies in the near future.
Despite the mounting infrastructure and warehousing expenses, Blinkit managed to slightly improve its contribution margin from 3.8% to 3.9%.
Food Delivery Segment: Margins Improving
Eternal’s core food delivery business also demonstrated signs of efficiency, with the Adjusted EBITDA margin rising from 3.8% to 5.2%. Additionally, the Gross Order Value (GOV) grew by 16% YoY, with a third of this volume now coming from the company’s District app, a digital platform gaining traction in tier 2 and 3 cities.
Market Reaction
On the BSE, Eternal’s share price closed 0.58% higher at ₹232.50 on Wednesday, indicating investor confidence in the long-term strategy despite near-term profit declines.
What This Means for Investors
While the bottom-line numbers may initially raise eyebrows, the company’s strategic focus on expanding Blinkit and improving margins in food delivery suggests that Eternal is playing a long game. The management seems confident that the current investments, though heavy, will create a stronger and more scalable business model in the quarters ahead.
FAQs: Eternal Q4 Results 2025
Q1: Why did Eternal’s profit fall so sharply in Q4FY25?
A: The steep 77.7% YoY drop in net profit to ₹39 crore was due to heavy investments in Blinkit’s store expansion and higher infrastructure costs.
Q2: Did the company show any revenue growth?
A: Yes, revenue from operations rose 63.8% YoY to ₹5,833 crore, reflecting robust demand and growth across business segments.
Q3: What is Blinkit, and why is Eternal investing so heavily in it?
A: Blinkit is Eternal’s quick commerce division. The company added 294 new stores in Q4FY25 and expanded warehouse space, aiming for faster deliveries and greater customer reach.
Q4: Is food delivery still profitable for Eternal?
A: Yes, the food delivery segment saw an increase in Adjusted EBITDA margin from 3.8% to 5.2%, showing better cost efficiency.
Q5: How did the stock react to the Q4 results?
A: Eternal’s stock ended 0.58% higher at ₹232.50, signaling that investors are optimistic about its long-term prospects.
Q6: What percentage of Blinkit stores are currently underutilized?
A: Around 40% of Blinkit stores are underutilized, having been opened in the last two quarters.
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