More Stories

Informist, Tuesday, Oct. 14, 2025

By Avishek Rakshit

KOLKATA – An increase in the monthly transacting user base despite the hike in platform fees in the September quarter and growing gross order value are expected to help food and grocery delivery platform Eternal Ltd. report a strong revenue growth.

The market leader in online food ordering and delivery platform is expected to report an 83% on-year jump in its consolidated revenue for the September quarter to INR 87.6 billion, but the consolidated net profit is expected to fall sharply by 36% on year to INR 1.1 billion, according to the average of estimates from nine brokerages. Eternal, earlier known as Zomato, will declare its results for the September quarter on Thursday.

On a sequential basis, however, the net profit is likely to rise by a whopping 349% and the revenue expected to increase by 22%. Motilal Oswal Financial Services Ltd. has the highest estimate for net profit at nearly INR 3 billion and ICICI Securities Ltd. has the lowest at INR 211 million. ICICI Securities has the highest revenue estimate at nearly INR 113 billion. Anand Rathi Share and Stock Brokers Ltd. has the lowest estimate for revenue at INR 72.1 billion.

Brokerages expect Eternal's revenue growth in the September quarter to be driven by increasing sales volume in the food delivery business which usually accounts for 40% of its annual revenue, as well as by pricing as the company had increased its service fees for online orders. Apart from the projected growth in gross order value, the incremental impact of the fees will boost the company's September top line, brokerages said.

ICICI Securities estimate Eternal's gross order value to grow by 18% on year and by 6.2% on quarter. JM Financial Institutional Securities Pvt. Ltd. estimate that the net order value for food deliveries, which is a truer reflection of revenue as it discounts the impact of tax, may grow by 15% on year and 6% on quarter. The rise in monthly transacting users to 23.2 million from 22.9 million in the June quarter is expected to have played a major role in increasing the overall gross order value.

At the same time, the company's grocery delivery app, Blinkit, which underwent an operational and structural change towards an inventory-led model is expected to drive revenue growth. The net order value from quick commerce, which usually accounts for 26% of the annual revenue, is expected to rise 28% on quarter led by a robust 23% order volume growth and monthly transacting users increasing sharply to 20 million in the September quarter as against 16.9 million in the June quarter.

JM Financial said that the shift towards the inventory-led model, which offers the company a larger scale of operations, may lead the Blinkit division to report a whopping 470% on-year and 175% on-quarter increase in revenue. The new model, implemented in the September quarter, may also help the contribution margin from Blinkit to expand to 4.4% of the net order value as against 3.9% in the June quarter.

However, Kotak Institutional Equities, which estimate an INR 900 million earnings before interest, tax, depreciation, and amortisation loss from the company's quick commerce segment, said Blinkit's shift to the hub-based model, where inventory is stockpiled, renders the company's overall financial performance incomparable with past quarters as 26% of the consolidated business has moved to a new operational model.

Eternal is expected to report a consolidated EBITDA of INR 2.5 billion in the September quarter, according to the average of estimates from eight brokerages. Motilal Oswal's estimate for EBITDA is the highest at INR 3.1 billion and Nuvama Wealth Management Ltd.'s estimate of INR 2.1 billion is the lowest.

Tuesday, shares of Eternal closed at INR 347.75, down 0.2% on the National Stock Exchange. The shares have risen nearly 16% since the company announced its June quarter earnings in July.

Of the 15 research reports on the company available with Informist, 13 have a 'buy' rating on the stock at an average target price of INR 325.38 and two brokerages have a ‘sell' rating on the stock at an average target price of INR 227.5.

The following are the Jul-Sept earnings estimates for Eternal from nine brokerages in descending order of the estimate of net profit in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.