Eternal Q1 Net Slumps 90% YoY to Rs. 25 Cr; Revenue Jumps 70%, Stock Rises 5%

Zomato-parent Eternal reports sharp profit drop despite strong top-line growth; stock ends higher on expansion bets

Eternal Ltd (formerly Zomato) on July 21 reported a 90% YoY drop in consolidated net profit to ₹25 crore in Q1FY26, sharply down from ₹253 crore a year earlier, despite a solid 70.4% rise in revenue to ₹7,167 crore. The steep profit decline was driven by a surge in expenses, particularly due to the expansion of Blinkit’s dark store network and backend investments. While revenue across verticals grew sharply, margin compression weighed on the bottom line.

The Q1 print is Eternal’s first major earnings report since its March rebranding. Traders tracking platform businesses like Zomato, Blinkit, and Swiggy were closely watching this release amid sector-wide cost discipline concerns.

Market Reaction & Technical View

Shares of Eternal surged 5.27% to ₹270.75 on the NSE post results, bucking the broader market trend. Trading volumes spiked with a delivery percentage of over 60%, suggesting investor confidence in the company’s long-term growth strategy despite short-term profit pressures.

Technical indicators show Eternal is attempting a breakout above its 200-DMA, with RSI at 63, indicating moderate bullish momentum. Analysts see resistance at ₹280, while support lies at ₹252. The options chain reflects rising open interest on the ₹280 call, hinting at possible near-term upside if buying sustains.

Also Read : IDBI Bank Q1 Net Rises 17% to Rs. 2,007 Crore; Asset Quality Improves, NIM Contracts

Sectoral Impact & Indices

While Nifty Next 50 held flat, internet platform stocks like Info Edge, Nazara, and Delhivery saw mixed reactions. Blinkit’s performance and scale-up drew particular interest in the quick commerce space, where players are grappling with high burn and logistics costs.

FIIs were net buyers of ₹932 crore in Friday’s trade, and domestic institutions absorbed supply in high-beta names, including Eternal. Sector sentiment remains cautiously optimistic with improving order volumes and expanding user bases across online delivery platforms.

Trading Outlook & What to Watch

Sentiment around Eternal hinges on Blinkit’s path to profitability and food delivery demand trends. The platform added 2 million new users QoQ, and GOV across businesses hit record highs. However, sustained EBITDA losses from Blinkit and rising competitive intensity could weigh on valuations.

Stocks to watch:

• Eternal (Zomato): Watch for ₹280 breakout or ₹252 retest

• Info Edge: Riding on tech platform sentiment, key support at ₹5,450

• Delhivery: GOV growth play, eyes on ₹410 level

Global tech stock momentum and US inflation cues will also drive near-term direction across platform-linked names.

Check This:

• Eternal (Zomato) Stock Price
• Info Edge Stock Price
• Delhivery Stock Price