Foodtech giant Eternal Limited, formerly known as Zomato Limited, has announced its Q4 results for FY25. The company recorded a 63% YoY growth in revenue during the quarter. However, its profit after tax dwindled 78% during the same period.
Key highlights:
- Eternal’s revenue grew 63.3% YoY to ₹6,201 crore in Q4 as compared to ₹3,797 crore a year earlier
- Profit for the quarter dropped by 77.7% YoY to ₹39 crore due to higher costs
- Zomato's food delivery revenue grew 18.1% YoY, while Hyperpure's B2B supplies surged 93.5%
- Blinkit saw a 122.2% increase in revenue to ₹1,709 crore in Q4, while losses of the segment surged
- Blinkit added 294 stores in Q4, bringing the total to 1,301, but losses in the quick commerce segment grew due to higher investments
Eterna’s revenue surges 64% in Q4 FY25
Zomato’s parent company, Eternal’s revenue from operations grew 63.8% to ₹5,833 crore during Q4 FY25 from ₹3,562 crore generated in the same quarter of the previous financial year (FY24).
Overall revenue of the company (including non-operating revenue) also surged on a similar line to ₹6,201 crore during the same period. Profit of the company slipped 77.7% to ₹39 crore in Q4 as compared to ₹175 crore a year ago.
| Financials | Q4 FY25 (₹ Cr) | Q4 FY24 (₹ Cr) | YoY Change |
| Revenue | 6,201 | 3,797 | 63.3% |
| PAT | 39 | 175 | -77.7% |
Source: Company filings
On the expense side, Eternal spent ₹1,632 crore on the cost of materials (after adjusting for the inventory changes). This cost went up 89.8% YoY from ₹860 crore in the same quarter of FY24.
Spends on employee benefits spiked 55.9% to ₹750 crore during the quarter, while the total expenditure of Eternal increased 67.9% to ₹6,104 crore in the same period.
On an annual basis, operating revenue surged 67.1% to ₹20,243 crore in FY25 as compared to ₹12,114 crore in the previous financial year. The total revenue of the company stood at ₹21,320 crore during FY25.
Though its quarterly profits went down, the annual profit after tax of Eternal grew 50.1% to ₹527 crore during FY25 against ₹351 crore in FY25.
| Financials | FY25 (₹ Cr) | FY24 (₹ Cr) | YoY Change |
| Operating revenue | 20,243 | 12,114 | 67.1% |
| Total revenue | 21,320 | 12,961 | 64.5% |
| PAT | 527 | 351 | 50.1% |
Source: Company filings
Following the announcement of the quarterly results, Eternal’s share price surged 1.2%.
How does Eternal make money?
Eternal primarily generates revenue from its food ordering and delivery vertical via the brand Zomato, which is an online food marketplace, allowing consumers to order food and get it delivered to their doorsteps. This business segment of the company grew 18.1% YoY to ₹2,054 crore in Q4.
The slowing growth of Zomato (food delivery biz) is due to the rising competition from quick commerce platforms and intense competition in quick food delivery, as per founder and CEO Deepinder Goyal.
Eternal’s hyperpure vertical, which supplies food items to restaurants and businesses for onward sales, formed 31.5% of the overall revenue in Q4. Revenue from this vertical surged 93.5% to ₹1,840 crore during the quarter.
The company’s quick commerce vertical under the brand ‘Blinkit’ contributed 29.3% to the revenue and ramped up 122.2% YoY to ₹1,709 crore in Q4. During the quarter, the company aggressively expanded its quick commerce network, adding 294 stores in Q4 FY25, totaling 1,301 stores. The segment’s losses increased significantly due to the increased investments and expansion costs.
Eternal’s going-out segment, which is a combination of dining-out and entertainment ticketing business, grew 146.2% in Q4 to ₹229 crore.
| Segment Revenue | Q4 FY25 (₹ Cr) | Q4 FY24 (₹ Cr) | YoY Change |
| Food ordering and delivery | 2,054 | 1,739 | 18.1% |
| Hyperpure supplies (B2B business) | 1,840 | 951 | 93.5% |
| Quick commerce | 1,709 | 769 | 122.2% |
| Going Out | 229 | 93 | 146.2% |
| Others | 1 | 10 | -90.0% |
| Operating revenue | 5,833 | 3,562 | 63.8% |
Source: Company filings
The race of quick commerce
Led by Blinkit, the quick commerce business in India is growing at a rapid clip, with more people now expecting groceries and essentials delivered in 10–20 minutes.
Recently, Reliance Retail (JioMart) announced that the company will continue under a 30-minute delivery model rather than join the 10-minute delivery race. It plans to leverage its over 2000 stores across 4,000 pincodes for hyperlocal deliveries and will set up dark stores when required.
A few days back, Eternal announced to cap the foreign ownership at 49.5% to maintain its status as an Indian-Owned and Controlled Company (IOCC) under the FEMA regulations.
It will allow Blinkit to introduce new product categories that are underrepresented on the quick commerce platforms as of now, purchasing the inventory directly from the small Indian manufacturers to strengthen local supply chains, and better product availability as per the demand of consumers, which will significantly contribute to better profit margins.
Summary
The parent company of Zomato and Blinkit, Eternal, recorded a strong growth in Q4 FY25, with revenue rising over 60% YoY to ₹6,201 crore. Despite this, the profit of the company fell sharply by 78% to ₹39 crore due to increased spending on expansion and operations. Its quick commerce vertical under Blinkit led the growth with a 122% surge in revenue to ₹1,709 crore, though losses increased for the vertical due to aggressive expansion as it added 294 stores in Q4, taking the total to 1,301 stores. Annually, Eternal’s profit surged 50.1% to ₹527 crore, with total revenue spiking 64.5% to ₹21,320 crore. The company’s rival, Swiggy is yet to file the quarterly earnings, it would be interesting for investors to monitor and compare the business growth of both.
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