In 2025, the most striking Eternal (formerly Zomato) story is not 30-minute deliveries – it is how a platform that once bled cash on discounts is now using data, traffic and payments flows to create new profit pools. Revenue for Q2 FY26 has soared 183% YoY to around ₹13,590 crore, but net profit slipped to roughly ₹65 crore, reflecting an aggressive reinvestment phase into Blinkit, District and other bets.[3] For investors, the key question is: will these newer businesses structurally improve return ratios, or merely add complexity?

Did you know that Eternal’s net sales growth over FY21–FY25 has compounded at over 60% annually, with net sales growth of 67.10% in FY25, 71.13% in FY24 and 68.85% in FY23?[1] At the same time, the classic food delivery segment’s revenue contribution has come down sharply – from about 81% in FY22 to 44% in H1 FY25 as Blinkit and allied businesses scaled up.[5][6]

To understand why this matters, consider the difference in economics between pure delivery and a platform with strong adtech and fintech-like revenues:

For Indian retail investors, this shift suggests three practical implications:

- Valuations may increasingly track high-margin ad/tech peers rather than only logistics players. - Cash flow visibility can improve as advertising and platform-fee revenues scale with limited incremental cost. - Risk profile changes: regulatory, data privacy and competition in adtech and ONDC could matter as much as restaurant and rider economics.

A useful way to think of Eternal today is as a mini “Google + Swiggy + BigBasket” mixture focused on India, but with SEBI-listed transparency, strong brand equity and a still-evolving profitability profile.

Eternal’s business model has evolved into a multi-engine platform with four broad pillars: food delivery, quick commerce (Blinkit), B2B supplies (Hyperpure), and newer bets such as District and adtech monetisation.

According to investor materials, food delivery now accounts for about 44% of H1 FY25 revenue, versus 81% in FY22.[5] Quick commerce via Blinkit has surged to over 70% of total revenue by Q2 FY26 as net order value surpassed food delivery for two consecutive quarters.[6] This shift materially changes the company’s risk and reward profile.

At a high level, Eternal’s revenue streams can be broken down as:

- Commissions & delivery charges from food delivery orders - Take-rate and margin on quick commerce orders (inventory model plus marketplace fees) - Adtech revenues: restaurant ads, sponsored listings, in-app banners, brand campaigns on Zomato and Blinkit - Subscription & membership fees: Zomato Gold / Pro-style offerings, loyalty programs - B2B supply margin via Hyperpure to restaurants and partners - Platform and value-added fees on ONDC-linked services where Eternal acts as a buyer or seller app

An illustrative revenue mix comparison (approximate, directional, not to scale):

From an investor’s lens, two things stand out:

1. Operating leverage: As more orders flow through the same app infrastructure, data stack and last-mile network, fixed costs per order fall. 2. Mix shift towards higher-margin revenues such as ads and platform-fee income improves the consolidated margin even if delivery economics stay tight.

However, this also introduces new execution risks: managing inventory risk in Blinkit, avoiding ad overload that annoys users, and navigating regulatory expectations around ONDC participation.

Eternal’s financial story in 2025–26 combines hypergrowth with still-fragile but improving profitability. On a consolidated basis, the company has delivered strong net sales growth for several years: FY25 net sales growth was 67.10%, FY24 71.13%, FY23 68.85% and FY22 110.27%, following a contraction in FY21.[1] This makes Eternal one of India’s fastest-growing large-cap consumer-internet companies.

Quarterly results show how this plays out. In Q2 FY26, revenue surged about 183% YoY to ₹13,590 crore, while net profit dipped 63% to around ₹65 crore, signalling aggressive reinvestment in Blinkit expansion and new verticals.[3] Screening platforms also show that return on capital employed (ROCE) has turned positive (low single digits) after years of negative ratios, reflecting the early benefits of operating leverage.[5]

Historical net sales growth data (consolidated):

From an investor’s standpoint, three questions matter:

1. Can high growth sustain as the base expands? Blinkit’s scaling and deeper penetration in Tier 2/3 cities via both Zomato and ONDC could support strong growth for a few more years.[6] 2. Will operating leverage translate into rising margins? Management has indicated a willingness to accept temporary profit dips in exchange for long-term growth, as seen in Q2 FY26.[3] 3. What is the balance sheet risk? Eternal’s model is relatively asset-light apart from dark store investments and some warehousing, which keeps financial leverage moderate; investors should monitor debt-to-equity and cash balances via quarterly filings.

To compare Eternal’s financial profile with a more traditional listed Indian consumer company and a SaaS-like high-margin business, consider the conceptual table below:

Eternal therefore belongs in the high-growth, emerging-profitability bucket in Indian portfolios – suited more for investors with higher risk appetite and longer time horizons.

Beyond deliveries, one of Eternal’s most interesting 2025–26 bets is adtech. With tens of millions of monthly transacting users (MTUs) across Zomato and Blinkit – Q2 FY26 saw MTUs rise from around 20.5 million to 24.1 million – Eternal controls one of India’s most intent-rich consumer funnels.[6] Users open the app when hungry or when they need daily essentials quickly; this is extremely valuable for brands.

Adtech monetisation on Zomato and Blinkit typically includes:

- Sponsored listings and search results for restaurants and stores - Brand banners and campaigns from FMCG companies (beverages, snacks, personal care) - Cross-promotion slots for Eternal’s own services (Gold, Hyperpure-linked offers, District events)

In practice, a restaurant might pay for better placement in search results, while a cola brand might use Blinkit for city-level campaigns targeting specific pin codes during IPL season. Because Eternal knows what and when users buy, ad targeting can be highly granular – similar to Meta or Google, but anchored in food and grocery context.

Conceptual comparison of monetisation models:

For investors, adtech matters for three reasons:

1. High incremental margins: Ad revenues mostly drop to the bottom line after initial platform build. 2. Defensive moat: Large, engaged user base and transaction data are hard to replicate, especially at Eternal’s scale. 3. Valuation uplift potential: Markets often assign higher multiples to platforms with strong ad monetisation (e.g., global social and search giants).

However, Eternal must balance ad load against user experience – excessive ads can hurt order frequency. Regulatory scrutiny around data privacy may also rise as adtech scales.

The Open Network for Digital Commerce (ONDC), backed by DPIIT, is India’s attempt to unbundle e-commerce by allowing any buyer app to connect with any seller app via common protocols. For Eternal, ONDC is both an opportunity and a competitive challenge.

Eternal can play multiple roles in the ONDC ecosystem:

- Buyer app: Allowing Zomato or Blinkit users to discover ONDC-listed restaurants, groceries or services beyond Eternal’s direct network - Seller/logistics partner: Using its delivery network to fulfil ONDC orders listed on other buyer platforms - Tech and data provider: Offering value-added services such as discovery, ads and analytics to ONDC participants

This aligns with the government’s broader digital public infrastructure vision (UPI, Account Aggregator, OCEN), where private players innovate on top of open rails. Eternal’s existing strengths in last-mile logistics, merchant acquisition and consumer trust give it a head start.

Conceptual positioning within ONDC:

For investors, ONDC introduces a few strategic questions:

- Will ONDC erode Eternal’s take rates by enabling restaurants and stores to reach customers via multiple buyer apps at lower fees? - Or will Eternal’s superior UX, reliability and adtools allow it to maintain premium economics even within an open network?

Given the early stage of ONDC adoption, the answer is not yet clear. However, Eternal’s participation keeps it relevant in policy conversations and allows it to experiment with new models (for example, acting as an ONDC-compliant logistics service for third-party orders). Regulatory developments from DPIIT, NPCI-like governance for ONDC and any SEBI/RBI guidance on data use will be important to monitor.

Eternal’s re-rating in the public markets has been driven as much by Blinkit and new bets as by the core Zomato food delivery business. Blinkit’s story is particularly important: by Q1 FY26, its net order value had surpassed Zomato’s food delivery net order value for a full quarter, and this trend extended into Q2 FY26.[6] As of Q2 FY26, Blinkit contributed over 70% of Eternal’s operating revenue.[6]

Despite a rapid expansion of its dark store network – over 1,000 locations by Q3 FY25 with a target of around 2,100 by FY26 – Blinkit narrowed its adjusted EBITDA margin loss from 4.3% to 1.3%, signalling an approach towards break-even at scale.[6] This is crucial, because quick commerce globally has been criticised for poor unit economics.

District, another Eternal bet, targets events and experiences discovery (competing with players like BookMyShow) and is still in a heavy investment phase, with monetisation yet to stabilise.[6] It aims to leverage Eternal’s demand pool to cross-sell event tickets, experiences and related services.

A simplified timeline of Eternal’s growth story:

From a funding standpoint, Eternal has raised substantial equity capital historically and used the listed platform for follow-on issuances such as QIPs.[7] With improving EBITDA and operating cash flows, dependence on new equity may reduce, but management still prioritises reinvestment over short-term margin maximisation.

For Indian investors, the key is to distinguish between proven engines (food delivery, increasingly Blinkit) and experimental bets (District, ONDC-led services, potential fintech offerings). The former deserve more weight in base-case valuations; the latter are essentially venture-style call options embedded within a listed stock.

For Indian investors, Eternal sits at the intersection of high-growth consumption, digital infrastructure and evolving regulation. It is no longer a pure-play food delivery company but a diversified consumer-internet platform with emerging adtech and ONDC-linked profit pools.

At the same time, earnings remain volatile. Q2 FY26 saw a 63% drop in net profit even as revenue nearly tripled, due to reinvestment into Blinkit, dark stores and new ventures.[3] This means that traditional valuation metrics like P/E may look stretched or misleading in the near term.

A more appropriate toolkit for Eternal includes:

- Price-to-Sales (P/S) and EV/GMV multiples, adjusted for profitability trends - Sum-of-the-parts (SOTP) valuation separating food delivery, Blinkit, adtech and ONDC/services - Scenario-based models capturing different margin trajectories and capital intensity

Illustrative SOTP-style thinking (purely conceptual):

Risk considerations specific to Eternal:

- Regulatory risk: Changes in gig-work norms, data privacy laws or ONDC governance could affect margins and operating flexibility. - Competition: Swiggy (including Instamart), Zepto, BigBasket, Amazon and others are aggressively investing in food and quick commerce. - Execution risk: Managing complex multi-vertical operations at scale while preserving UX and unit economics. - Macroeconomic risk: Discretionary spending slowdowns may hurt order frequency, especially for premium restaurants and impulse quick-commerce purchases.

For retail investors, Eternal may fit best as a satellite holding within a diversified portfolio – representing India’s digital-consumption upside but sized appropriately given volatility.