Zomato’s parent company, Eternal, has released its results for the first quarter of the financial year 2025-26. The company’s profit dropped by 90% compared to the same period last year, falling from ₹253 crore to just ₹25 crore. Even sequentially, profit declined by 36% over the previous quarter. This highlights the significant challenges the company is currently facing in maintaining profitability.
While profit decreased, Zomato’s food delivery business showed only modest growth. The gross order value (NOV) for food delivery increased by just 13% year-over-year, indicating that consumers remain cautious about spending on online food orders. Additionally, some people are choosing to dine out again or cook at home to save money.
One major reason for the drop in profit is increased spending. Eternal’s total revenue rose 70% to ₹7,167 crore, but expenses climbed even higher—by 77%—to ₹7,433 crore. This means the company’s expenses outpaced its revenue growth, negatively impacting profits.
Despite the decline in profit, CEO Deepinder Goyal has stated that the company will continue to invest for long-term growth. He believes ongoing investment in new services and technology is essential to staying ahead of the competition.
Despite these challenges, Zomato’s team remains optimistic about the future. They are working on new strategies to attract more customers, manage costs more effectively, and outperform strong competitors. As these companies compete, customers are likely to benefit from better deals, faster deliveries, and a wider range of choices.
Recently, Swiggy has been focusing heavily on quick grocery delivery, while Zepto is planning an IPO to expand its presence. This intensifies the competition for faster delivery and a larger customer base.
For detailed Q1 FY26 financials of Eternal, refer this pdf: https://drive.google.com/file/d/1VtoiLsA2OpKauFnkKIlhXRmnbvxL-6ha/view
