Eternal Ltd, the parent company of Zomato, Blinkit, and District, reported strong growth in Q2 FY26, delivering its highest-ever consolidated revenue. Consolidated adjusted revenue reached ₹13,968 crore, marking a 172% year-on-year (YoY) rise and an impressive 85% sequential growth from Q1 FY26. The company’s adjusted EBITDA climbed 30% QoQ to ₹224 crore, showcasing better cost control and operational efficiencies, even as profitability remained under pressure due to higher expansion costs.
Consolidated Business Overview
Eternal’s three major B2C arms — Zomato, Blinkit, and District — contributed to the consolidated Net Order Value (NOV) of ₹23,164 crore, which grew 57% YoY and 15% QoQ. Each business segment demonstrated unique growth trajectories, collectively strengthening Eternal’s ecosystem.
- Blinkit (Quick Commerce): The fastest-growing unit, Blinkit recorded 137% YoY and 27% QoQ NOV growth — its best performance in 10 quarters. The company added 272 new stores, bringing its total to 1,816, and aims to expand to 3,000 stores by March 2027.
- District (Going Out Vertical): NOV grew 32% YoY, supported by new categories like “stores” on the Zomato app and over 3,400 onboarded outlets across six cities, facilitating 60,000+ transactions. The launch of District UAE marked the brand’s first international expansion.
- Zomato (Food Delivery): Food delivery NOV grew 14% YoY in Q2, improving from 13% YoY growth in the previous quarter. The business achieved record profit margins of 5.3% of NOV, crossing ₹500 crore in quarterly profits for the first time.
- Hyperpure (B2B Food Supplies): Continued steady growth of 42% YoY and 15% QoQ, with the segment now on track for profitability within the next two quarters.
Margin and Profit Metrics
Eternal reported a net profit of ₹65 crore, down 63% YoY from ₹176 crore in Q2 FY25, mainly due to increased marketing spends and strategic reinvestments in Blinkit’s inventory model transition. Marketing expenditure reached ₹806 crore, nearly double from the previous quarter, while employee benefits and logistics spending also surged due to rapid expansion.
However, operational EBITDA improvement of 30% QoQ signaled that the company’s revenue model is scaling efficiently despite ongoing capital spends. Blinkit’s inventory-based model, now covering over 80% of total quick-commerce order value, is expected to improve margins gradually over the next few quarters.
Outlook and Strategic Direction
Eternal chairman Deepinder Goyal reaffirmed the company’s commitment to profitability while maintaining aggressive expansion. Blinkit remains the key growth driver, while Zomato continues to deliver consistent operating profits. District’s expansion in the UAE underscores Eternal’s broader ambition to build global consumer internet verticals from India. Hyperpure’s growth trajectory, supported by consistent restaurant partnerships, reaffirms its role as an essential contributor to the company’s ecosystem.
Management expects steady QoQ expansion across businesses, with improved blended margins by FY27 once growth-related investments normalize.
Financial Comparison: Q2 FY26 vs Q1 FY26
| Metric / Segment | Q1 FY26 | Q2 FY26 | QoQ Change | YoY Change |
|---|---|---|---|---|
| Consolidated Adjusted Revenue | ₹7,550 crore | ₹13,968 crore | +85% | +172% |
| Adjusted EBITDA | ₹172 crore | ₹224 crore | +30% | NA |
| Net Profit | ₹119 crore | ₹65 crore | -45% | -63% |
| B2C Consolidated NOV | ₹20,148 crore | ₹23,164 crore | +15% | +57% |
| Blinkit NOV Growth | 110% YoY, +15% QoQ | 137% YoY, +27% QoQ | Accelerated | +137% YoY |
| Blinkit Stores | 1,544 | 1,816 | +272 | +40% YoY |
| Zomato Food Delivery NOV Growth | 13% YoY | 14% YoY | Slightly Higher | – |
| District NOV Growth | 27% YoY | 32% YoY | +5 pp | Expanding |
| Hyperpure Growth | 36% YoY | 42% YoY | +6 pp | +42% YoY |
| EBITDA Margin (Overall) | 2.3% | 2.7% | +0.4 pp | Improving |
Read this: Zomato’s Profit Declined by 90%; Food Delivery Business Rose Only 13% YoY
Summary:
Eternal Ltd has posted a stellar Q2 FY26, demonstrating its strongest quarterly performance to date driven by Blinkit’s quick commerce momentum, Zomato’s profitability milestone, and District’s international debut. While marketing costs and capital spends have compressed net profit in the near term, the company’s solid revenue jump and widening ecosystem suggest a sustainable path toward long-term profitability. Investors will be watching Q3 closely for confirmation of stable margins and continued market share gains across all verticals.
