Shares of Eternal (formerly Zomato) will be in focus on Friday after the food delivery platform reported a 78% year-on-year (YoY) decline in net profit to Rs 39 crore for the March 2025 quarter. However, revenue from operations surged 64% YoY to Rs 5,833 crore.

The sharp drop in profit was driven by a 68% YoY increase in total expenses, which rose to Rs 6,104 crore. The company attributed the higher costs to increased investments in its quick commerce vertical, Blinkit, as well as elevated infrastructure spending across segments.

Adjusted EBITDA during the fourth quarter declined 15% YoY to Rs 165 crore.

Food delivery business

Eternal’s core food delivery business remained stable, with GOV (Gross Order Value) of Rs 8,439 crore, up 6% sequentially. Adjusted EBITDA margin for the segment stood at 5.7%. The company attributed the margin gains to improved average order values and better logistics efficiency.

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Blinkit

Quick commerce arm Blinkit saw a strong jump in business during Q4. Revenue rose 122% YoY to Rs 1,709 crore from Rs 769 crore a year earlier. The Net Order Value (NOV) increased 53% YoY and 19% quarter-on-quarter.

Eternal has also introduced a new consolidated metric called Adjusted Net Order Value, which it says offers a better lens to evaluate business growth across platforms.

The company added 75 new Blinkit stores during the quarter, taking the total to 526 stores across 26 cities. However, the aggressive expansion led to wider losses. Adjusted EBITDA loss for Blinkit increased to Rs 178 crore in Q4FY25.

Blinkit CEO Albinder Dhindsa said the company had pulled forward many store launches originally planned for FY26, saying, “This was a conscious call to pre-empt competition and strengthen our footprint."

The company said profitability is not the immediate priority for Blinkit. "Our priority is to build a strong, reliable network. Profitability will follow scale," the management said in its letter to shareholders.

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Hyperpure

Hyperpure, Eternal’s B2B grocery and supply chain business for restaurants, clocked a revenue of Rs 929 crore, up 52% YoY. Adjusted EBITDA loss narrowed to Rs 25 crore from Rs 33 crore in the previous quarter.

The company said it continues to see Hyperpure as a long-term play and expects further improvement in margins as scale increases.

For FY25, Eternal reported a full-year consolidated profit of Rs 351 crore. Adjusted revenue for the year stood at Rs 20,059 crore, up 67% YoY.

Eternal shares price target

As per Trendlyne data, the average target price of the stock is Rs 277, which shows an upside of 19% from the current market prices. The consensus recommendation from 29 analysts for the stock is a 'Buy'.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)