Synopsis:
One of the leading online Food Service platforms is in the spotlight after announcing Q2 results.
A Large-cap company that is one of the leading online Food Service platforms is in the spotlight today after posting Q2FY26 results. Read the article below for detailed insights into its performance.
With a market capitalization of Rs. 3,28,594.44 crore, the shares of Eternal Limited closed at Rs. 340.50, down by 3.91 percent from its previous day’s closing price of Rs. 354.35. In today’s trading session the stock has touched an intraday low of Rs. 338, implying 4.61 percent from its previous day’s closing price.
Q2FY26 Results
Eternal Limited reported Rs. 13,590 crore in revenue for the second quarter of FY26, a 183.18 percent increase over the Rs. 4,799 crore for the same period in FY25. It increased by 89.62 percent as compared to Rs. 7,167 crore in Q1 FY26.
The company’s EBITDA for Q2 FY26 stood at Rs. 239 crore, up by 5.75 percent from Rs. 226 crore in Q2 FY25, but it increased by 54.19 percent Rs. 115 crore in Q1 FY26
The consolidated net profit for the second quarter of FY26 was Rs. 65 crore, which was 63 percent lower than the Rs. 176 crore reported in the Q2 FY25, but it increased by 160 percent from Rs. 25 crore in Q1 FY26. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 0.07 in Q2 FY26 from Rs. 0.03 in Q1 FY26.
Eternal Limited, formerly known as Zomato Limited, was founded in 2008 and is based in Gurugram, India. The company operates a range of e-commerce platforms catering to restaurants, quick commerce merchants, delivery partners, theatres, and event organizers across India and abroad.
Its key offerings include food delivery through Zomato, B2B supplies via Hyperpure, quick commerce under Blinkit, and entertainment services through the District app, which features dining, movies, sports, and live events.
Additionally, Eternal provides payment solutions, financing, advertising, subscriptions, trading, and logistics support, including warehousing and supply chain services for sellers.
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Why Has Net Profit Fallen?
Eternal Limited’s profit decline in Q2 FY26 is primarily due to a sharp rise in total expenses, which increased 188.8 percent YoY to Rs. 13,813 crore, nearly matching revenue of Rs. 13,590 crore. Material costs surged 5.8 times to Rs. 7,742 crore, delivery and logistics expenses rose 58.29 percent, advertising and promotions doubled to Rs. 806 crore, and employee costs grew 46.61 percent to support user acquisition and talent expansion.
The company’s aggressive expansion of Blinkit, adding 272 new stores, along with entry into new cities and higher infrastructure costs, weighed on margins. Additionally, acquisition-related expenses from Orbgen Technologies and Wasteland Entertainment affected results, making quarter-to-quarter comparisons less comparable.
Segment Wise Updates
Food Delivery
Food delivery growth is stabilizing and recovering, with a 14 percent YoY increase in Net Order Value (NOV), while profitability rose QoQ to a record 5.3 percent of NOV, up from 5 percent in Q1 FY26.
Deepinder Goyal, CEO of Eternal, stated that the company’s food delivery Net Order Value (NOV) in Q2FY26 aligned with projections, showing a year-over-year growth rebound after five quarters of decline.
However, he noted that the recovery is slower than expected, with only a gradual uptick anticipated in the near term. Goyal highlighted ongoing efforts to make restaurant food more accessible and affordable, while citing headwinds such as soft discretionary spending in India, competition from quick commerce, and volatile weather conditions affecting near-term growth.
Quick commerce business
The company’s Quick Commerce business saw NOV growth of 137 percent YoY and 27 percent QoQ, its highest in 10 quarters, supported by 272 new stores and a strong influx of new customers.
Deepinder Goyal, Founder of Eternal, reported that quick commerce NOV growth accelerated to 137 percent YoY (27 percent QoQ), marking the highest growth in the past ten quarters.
The company expanded its network with 272 new stores, bringing the total to 1,816 stores by quarter-end. Adjusted EBITDA margin improved QoQ to -1.3 percent from -1.8 percent in Q1FY26, though the improvement was slower than expected due to additional investments in market share growth.
Blinkit
Blinkit reduced quarterly losses to Rs. 156 cr from Rs. 162 cr in Q1 FY26, with adjusted EBITDA margin improving to -1.3 percent of NOV. Food delivery growth is recovering, with 14 percent YoY NOV growth and profitability rising QoQ to 5.3 percent of NOV.
Albinder Dhindsa, Founder of Blinkit, stated that the company has consistently maintained its quarterly rate of net store additions and aims to expand its network to 3,000 stores by March 2027.
Written By Akshay Sanghavi
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