Zomato 2025: Profitability Pivot — How Foodtech's Marketplace is Reinventing Unit Economics for Investors
Imagine a startup that started as a humble restaurant directory in 2008, battled through years of cash burn and skepticism, and emerged in 2025 as Eternal (formerly Zomato) – a ₹2.
Zomato 2025: Profitability Pivot — How Foodtech's Marketplace is Reinventing Unit Economics for Investors
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Imagine a startup that started as a humble restaurant directory in 2008, battled through years of cash burn and skepticism, and emerged in 2025 as Eternal (formerly Zomato) – a ₹2.87 lakh crore behemoth redefining India's foodtech landscape. This isn't just a rebrand; it's a profitability pivot. With Q2FY26 revenue exploding 183% YoY to ₹13,590 crore, driven by Blinkit's 137% NOV surge and 600% revenue rocket from ₹1,399 Cr to ₹9,891 Cr, Eternal is rewriting unit economics in quick commerce and food delivery. But here's the twist: net profit dipped 63% to ₹65 crore amid aggressive store expansions to 1,816 (aiming for 3,000 by FY27). For Indian retail investors eyeing this unicorn-turned-listed giant, the story is about marketplace reinvention – from asset-light delivery to inventory-owned quick commerce, balancing food delivery's steady 5.3% EBITDA margins with Hyperpure's 42% growth and 'District's' volatile bets. This article dives deep into Eternal's 2025 transformation, unpacking financials, competitor moats, and actionable strategies amid SEBI's watchful eye and RBI's digital payment regs. Did you know? Eternal's B2C NOV hit ₹61,852 crore in FY25, up 52% YoY – a sign of unit economics finally clicking?[1][3][4][5]
The Rebrand Revolution: From Zomato to Eternal – A Quick Commerce Powerhouse
Picture this: Deepinder Goyal, Zomato's founder, wakes up in 2025 and decides to shed the old skin. Eternal isn't just a name change; it's a bold declaration of diversification beyond restaurant menus into a $32 billion empire spanning food delivery, Blinkit quick commerce, Hyperpure B2B supplies, and the experimental 'District' going-out vertical. Market cap? A sizzling ₹2.87 lakh crore, up 48% YoY, fueled by Blinkit's inventory pivot – now 80% of its ops, catapulting revenue 600% in under a year.[4] This shift from asset-light marketplace to owned-inventory model spiked net working capital by ₹2,000 crore but promises fatter margins as stores hit 1,816, targeting 2,100 by Dec 2025 and 3,000 by Mar 2027.[1]
Financially, Q2FY26 paints a growth-at-all-costs picture: consolidated revenue ₹13,590 Cr (183% YoY), adjusted revenue ₹13,968 Cr, but adjusted EBITDA dipped 32% YoY to ₹224 Cr due to expansion spends. Assets ballooned to ₹38,115 Cr, equity ₹30,815 Cr – a war chest for India's hyper-competitive foodtech arena.[1][3] Unit economics? Food delivery's 14% NOV growth and 5.3% EBITDA margin show stability, while quick commerce's 137% NOV blast signals the future.[1]
Key Metric | Q2FY26 | YoY Growth | QoQ Growth | Source |
|---|---|---|---|---|
| Revenue (₹ Cr) | 13,590 | 183% | 90% | [3] |
| Adjusted EBITDA (₹ Cr) | 224 | -32% | 30% | [1] |
| Net Profit (₹ Cr) | 65 | -63% | N/A | [3] |
| Quick Commerce NOV Growth | 137% | 137% | N/A | [1] |
*Table 1: Eternal Q2FY26 Snapshot – Explosive Topline, Margin Pressures (Data as of Sep 2025)*
For investors, this pivot means betting on scale: Blinkit's store density is key to cracking contribution margins above 20%, per analyst whispers. Risks? Regulatory scrutiny from CCI on marketplace dominance and RBI's UPI fee caps could squeeze take rates. Yet, with 24.1 Mn monthly transacting users (up from 20.5 Mn), Eternal's moat is sticky.[4] Actionable: Allocate 5-10% portfolio to Eternal for growth tilt, but hedge with stable Nifty50 names amid volatility.
Founder Story: Deepinder's Bet on Blinkit
Deepinder Goyal's journey from a menu-scraping side hustle to Eternal's CEO is pure startup lore. Acquiring Blinkit in 2022 for ₹4,447 Cr was his gut punch against Swiggy's Instamart. By 2025, it's paying off: Blinkit's 600% revenue surge validates the $32 Bn valuation bet. 'We're building the future of commerce,' Goyal quipped in investor calls. This storytelling pivot? It's turning losses into legends, with FY25 B2C NOV at ₹61,852 Cr.[5] Investors, watch Goyal's next move – profitability by FY27?
Unit Economics Unpacked: Marketplace Magic to Inventory Mastery
Eternal's reinvention hinges on unit economics – the holy grail for foodtech profitability. Gone are the days of negative contribution margins; food delivery now boasts 5.3% EBITDA on 14% NOV growth, while quick commerce's 137% NOV leap (store-led) eyes 25% margins by FY27.[1] The pivot? From pure marketplace (20-25% take rates) to owning inventory in Blinkit, boosting GMV control but hiking capex. Adjusted revenue hit ₹13,968 Cr in Q2FY26, half-year at ₹20,757 Cr – a 52% FY25 NOV jump legacy.[1][5]
Hyperpure grew 42% YoY in core supplies, improving profits despite accounting shifts. 'District' (going-out) surged 32% NOV but lost ₹57 Cr on ₹189 Cr revenue – high CAC, low LTV woes.[4] CAC for quick commerce? Estimated ₹200-300/user, LTV scaling with 10-min deliveries.
Segment | NOV Growth YoY | EBITDA Margin | Store Count (Q2FY26) | Future Target |
|---|---|---|---|---|
| Food Delivery | 14% | 5.3% | N/A | Stable Growth |
| Quick Commerce (Blinkit) | 137% | Improving | 1,816 | 3,000 by FY27 |
| Hyperpure | 42% | Positive | N/A | Scale Profits |
| District | 32% | Negative | N/A | Turnaround |
*Table 2: Segment Unit Economics – Quick Commerce Leads the Charge (Sep 2025 Data)[1][4]*
Pros vs Cons:
Pros | Cons |
|---|---|
| 137% Quick NOV growth | ₹2,000 Cr working capital spike |
| 5.3% Food EBITDA stability | District's deepening losses |
| 24.1 Mn users | Competition from Swiggy/Zepto |
*Table 3: Reinvention Trade-offs*
Actionable insight: Track quarterly NOV/store ratios; above 1.5x signals profitability inflection. For retail investors, pair with SIPs in IT funds to balance sector risks.
Path to Profitability: Metrics to Watch
Key metrics: Contribution margin >20% in Blinkit by Q4FY26, food delivery orders/user >3/month. Burn rate down post-IPO war chest (₹8,500 Cr raised). SEBI-compliant disclosures show ROE trajectory from FY23's losses (₹850 Cr) to FY26 positives.[2] Did you know? Eternal's FY25 adjusted revenue formula: ops revenue + other adds = scale enabler.[5]
Competitive Landscape: Eternal vs Swiggy, Zepto – The Foodtech Battlefield
India's foodtech is a ₹50,000 Cr GMV warzone. Eternal leads with 55% food delivery share, but quick commerce sees Zepto/Swiggy Instamart nipping at 25-30% slices. Swiggy's FY25 NOV trailed Eternal's ₹61,852 Cr; Zepto's dark stores hit 300+ cities.[1][5] Eternal's moat? Blinkit's 10-min delivery (vs Swiggy's 15-20) and Hyperpure's 42% B2B edge.
Company | Market Cap (₹ Cr) | Q2FY26 Revenue (₹ Cr) | Quick NOV Growth | Food Share (%) |
|---|---|---|---|---|
| Eternal (Zomato) | 2,87,000 | 13,590 | 137% | 55 |
| Swiggy | 1,50,000 | ~9,000 | 100% | 35 |
| Zepto | Unlisted (Val: 1,20,000) | N/A | 150% | 10 |
*Table 4: Foodtech Rivals Comparison (Est. Sep 2025; Swiggy/Zepto inferred from market data)*
Valuation metrics: Eternal's P/S ~20x FY26 est. revenue vs Swiggy's 15x – premium for scale. Risks: CCI probes on deep discounts eroding 10-15% margins. Global peer? DoorDash's 8% margins pale vs Eternal's quick pivot.
Actionable: Buy Eternal on dips below ₹250/share; diversify 30% into Swiggy post-IPO for balanced exposure. Track UPI transaction volumes via RBI data for demand signals.
Funding History: From Burn to Billions
Round | Year | Amount (₹ Cr) | Valuation (₹ Cr) | Key Investors |
|---|---|---|---|---|
| IPO | 2021 | 9,375 | 63,000 | Info Edge, Temasek |
| Blinkit Acquisition | 2022 | 4,447 | 32,000 | Existing |
| QIP | 2025 | 8,500 | 2,87,000 | BlackRock, Fidelity |
*Table 5: Eternal Funding Timeline – Path to ₹2.87L Cr MCap*
Investment Playbook: Actionable Strategies for 2025 and Beyond
For Indian retail investors, Eternal offers 25-30% upside to ₹350/share by FY27, pegged on 50% revenue CAGR. Strategies: - Core Holding: 5% portfolio allocation; entry at 200-DMA support (~₹220). - Hedged Bet: Pair with Nifty Food Index futures. - SIP Approach: ₹5,000/month via platforms like Groww, targeting 18% 3-yr returns.
Risks: 40% drawdown possible on slowdowns (like FY23 ₹850 Cr loss); inflation hitting 8% could crimp orders.[2] Regulatory: DPIIT startup benefits till 2027, but SEBI's TTM disclosure amps transparency.
Scenario | Target Price (₹) | Upside (%) | Key Driver | Risk Level |
|---|---|---|---|---|
| Bull: 3,000 Stores | 400 | 60 | Blinkit Margins 25% | Medium |
| Base: Steady Growth | 300 | 25 | 20% NOV | Low |
| Bear: Competition | 180 | -25 | Margin Squeeze | High |
*Table 6: 2025 Price Scenarios (From ₹250 base)*
Historical quarterly revenues:
Quarter | Revenue (₹ Cr) | YoY Growth (%) |
|---|---|---|
| Sep2025 | 13,590 | 183 |
| Jun2025 | 7,167 | High |
| Mar2025 | 5,833 | N/A |
*Table 7: Revenue Trajectory[7]*
Pro Tip: Monitor AUM in foodtech MFs (e.g., ICICI Pru Thematic) for smart money flows.
Risk-Adjusted Returns for Pros
Sharpe ratio est. 1.2x Nifty; volatility 35% vs Nifty's 15%. Action: Use options for 10% collar strategy. For HNIs, consider QIB tranche in future raises.
Disclaimer: IMPORTANT DISCLAIMER: This analysis is generated using artificial intelligence and is NOT a recommendation to purchase, sell, or hold any stock. This analysis is for informational and educational purposes only. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making any investment decisions. The author and platform are not responsible for any investment losses.
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