Eternal Reports Profit Dip Amid Increased Quick Commerce Investments

Quick Summary

• Eternal, formerly known as Zomato, reported a 78% drop in consolidated net profit for Q4 (ended March 31), at ₹390 million compared to ₹1.75 billion the previous year.
• The decline is attributed to higher spending on its quick commerce platform, Blinkit.
• Quick commerce involves delivering items in under 15 minutes adn has become highly competitive among companies.
• Blinkit’s revenue more than doubled year-on-year to ₹17.09 billion but remains unprofitable due to surge in investments and competition with Swiggy Instamart and Zepto.
• Adjusted earnings from Eternal’s food delivery platform grew by 17% YoY, reaching ₹24.09 billion.
• Blinkit’s core adjusted loss widened considerably to ₹1.78 billion compared to ₹370 million last year.

Indian Opinion Analysis

The results highlight both the promise and challenges of India’s fast-growing quick commerce sector. While revenue growth for Blinkit demonstrates strong consumer demand, its widening losses reflect the high operational costs tied to managing discounts, subsidized deliveries, and infrastructure expansion such as warehouses.Blinkit’s enhanced market share shows Eternal’s commitment toward becoming a major player despite profit delays-a common trajectory for companies targeting hypergrowth areas like rapid delivery services. However, sustained competition with rivals Swiggy Instamart and Zepto could increase financial strain further unless efficiency improves or consumer willingness compensates through higher prices.

eternal’s traditional food delivery business maintains steady growth (17%), showcasing relative stability compared with high-risk segments like quick commerce-but whether such stability will be enough amid aggressive investment strategies remains uncertain.

read More