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Informist, Monday, Jul. 21, 2025

 

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--Eternal Apr-Jun consol net profit INR 250 mln
--Analysts saw Eternal Apr-Jun consol net profit at INR 1.04 bln
--Eternal Apr-Jun consol net profit INR 250 mln vs INR 2.53 bln year ago
--Eternal Apr-Jun consol revenue INR 71.67 bln vs INR 42.06 bln year ago
--Eternal Apr-Jun consol expenses INR 74.33 bln vs INR 42.03 bln year ago
--Eternal board OKs incorporation of wholly-owned subsidiary Blinkit Foods
--Eternal Apr-Jun delivery expenses INR 18.69 bln vs INR 13.28 bln year ago
--Eternal: Blinkit Foods will provide svcs such as food preparation, sale
--Eternal: Blinkit Foods will provide svcs such as food delivery

--Eternal Q1 India food delivery sales INR 22.61 bln vs INR 19.42 bln yr ago

--Eternal Q1 Hyperpure revenue INR 22.95 bln vs INR 12.12 bln year ago

--Eternal Q1 quick-commerce revenue INR 24.00 bln vs INR 9.42 bln year ago

--Eternal shares rise more, now at INR 270.45, up 5.2% vs 4.4?rlier

--Eternal Apr-Jun consol adjusted EBITDA INR 1.72 bln, down 42% on year

--Eternal Apr-Jun food delivery gross order value INR 107.69 bln, up 16% YoY

--Eternal Apr-Jun quick commerce gross order value INR 118.2 bln, up 140% YoY

--Eternal Apr-Jun going-out gross order value INR 23.70 bln, up 87% on year

--Eternal consol cash balance INR 188.6 bln on Jun 30 vs INR 188.2 bln Mar 31

--Eternal: Blinkit  Q1 net store additions 243, total 1,544 as on Jun 30

--Eternal: On track to get 2,000 Blinkit stores by December

--Eternal: Food delivery net order value in FY26 to rise north of 15%

--Eternal: Apr-Jun quick commerce net order value INR 92.03 bln, up 127% YoY

--Eternal: Food delivery net order value subdued on yr on softness in demand

--Eternal:Q1 margins impacted due to lower availability of delivery partners

--Eternal: Hyperpure's Apr-Jun revenue up 89% on year, 25% on quarter

--Eternal: Expect de-growth in Hyperpure business in next few quarters

--Eternal: To maintain food delivery margin at 5% of net order value

--Eternal: To focus on ramping up investments in food delivery business

--Eternal: Don't see threat from new entrants in food delivery business

--Eternal: Incurred INR 10 bln to set up net new quick comm stores in 5 qtrs

--Eternal: Does feel like Blinkit margins have bottomed out for near term

--Eternal:Apr-Jun capex for quick comm stores, warehouse network INR 3.10 bln

--Eternal: See Blinkit margin improving as stores opened last 12 mos mature

--Eternal: Abosolute losses in Blinkit should come down going forward

--Eternal: Quick-commerce ops to move to inventory-led model over 2-3 qtrs

--Eternal: See 100 bps margin rise over time on move to inventory-led model

 

By Rajesh Gajra

 

NEW DELHI – Operating costs of the restaurant aggregator and food delivery company Eternal Ltd, formerly Zomato Ltd., rose sharply on year in the June quarter and this along with a sharp rise in depreciation and amortisation costs resulted in a larger-than-expected fall in its bottom line. On other hand, the top line growth was stronger than expected.

 

The company reported a 90% on-year fall in its consolidated net profit to INR 250 million for the June quarter, much below analysts' average estimate of INR 1.04 billion. Eternal's revenue from operations jumped 70% on year to INR 71.67 billion which surpassed analysts' estimate of INR 66.75 billion by a notable margin.

 

The company's revenue growth on a year-on-year basis was at a four-quarter high while its net profit fall was higher than those in the previous two quarters. Sequentially, the company's net profit was down 36% while its revenue from operations rose 23%.

 

The total expenses of Eternal surged 77% on year to INR 74.33 billion. The purchase of stock-in-trade costs rose a sharp 2.3 times on year, the highest jump in 10 quarters, to INR 25.57 billion. This expense item had the biggest share in total expenses, making up for 34%.

 

Delivery and related charges jumped 41% on year to INR 18.69 billion. The company said there was a lower availability of delivery partners and this affected the June quarter margins.

 

There was a 1.1 times rise in other expenses, the highest in nine quarters, to INR 13.98 billion. The company said it had incurred INR 10 billion capital expenditure to set up around 1,000 net new quick commerce stores and around 2.5 million square feet of warehouse capacity in the last five quarters. The total capital expenditure in the June quarter was INR 3.70 billion, of which INR 3.10 billion was on account of 243 net new store additions and accompanying warehouse network.

 

Eternal added 243 net new stores in the June quarter, taking the total to 1,544 as on Jun. 30. The company said it was on track to meet its December-end goal of 2,000 Blinkit stores.

 

As a result of elevated operating costs, the company's consolidated adjusted earnings before interest, tax, depreciation, and amortisation dropped 42% on year to INR 1.72 billion. The bottom line of the company was also affected by doubling of its depreciation and amortisation expenses to INR 3.14 billion in the June quarter from INR 1.49 billion in the year-ago quarter.

 

SEGMENT PERFORMANCE

Eternal operates in two segments--business-to-consumer and business-to-business. Food ordering and delivery through the Zomato app, going out or dine out and Blinkit operations make up for the business-to-consumer segment of the company, while Hyperpure network that supplies to restaurants and non-restaurant customers, is its business-to-business segment.

 

The India food ordering and delivery revenue in the June quarter jumped to INR 22.61 billion from INR 19.42 billion in the year-ago quarter. This came on the back of a 16% on-year rise in food delivery gross order value to INR 107.69 billion. The net order value growth in food delivery, however, was however subdued at 13% on year in the June quarter due to sluggish demand environment, the company said.

 

The food delivery adjusted EBITDA margin expanded to 4.2% in the June quarter from 3.4% in the year-ago quarter. The company said it will maintain good delivery at 5% of net order value. The company does not see threat from new entrants in food delivery business but will focus on ramping up investments in the business. It said the food delivery net order value in FY26 will rise north of 15%.

 

The going-out vertical recorded an 87% rise on year in its gross order value INR 23.70 billion. The quick commerce gross order value jumped up 2.4 times on year to INR 118.2 billion while its net order value rose 2.3 times to INR 92.03 billion. The quick-commerce revenue jumped to INR 24.00 billion from INR 9.42 billion in the year-ago quarter.

 

The company said it expects Blinkit margins to improve as stores opened in last 12 months mature. It said absolute losses in Blinkit should come down going forward. The quick commerce will move to inventory-led model over 2-3 quarters and this will likely result in a 100-basis-point rise in margin over time, the company said.

 

 

The company said it felt that Blinkit margins have bottomed out for near term. Hyperpure, the B2B segment of the company, saw revenue rising in the June quarter to INR 22.95 billion, up 89% on year and 25% sequentially. The company said it expects a de-growth in Hyperpure business in next few quarters. The consolidated cash balance of the company moved up slightly to INR 188.6 billion as of Jun. 30 from INR 188.2 billion as of Mar. 31.

 

The company announced Monday it had got board approval to set up a wholly-owned subsidiary Blinkit Foods Ltd. This new subsidiary will provide services such as food preparation, sale and delivery.

 

Monday, shares of the company closed at INR 271.70 on the National Stock Exchange, up 5.6%. The company announced its June quarter earnings during market hours. Shares of the company had risen 4.4?fore the earnings announcement, and it rose higher afterwards.  End

 

Edited by Akul Nishant Akhoury

 

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