Eternal Reports Profit Decline of 78% in Q4FY25 Amidst Aggressive Growth Investments

Eternal (formerly Zomato), the food delivery and quick commerce platform operator, has reported a significant drop in net profit for the fourth quarter of the fiscal year 2025, even as revenue from operations saw a robust increase. The Company’s shares are trading at ₹235.18, with an increase of 1.14%.

Sharp Drop in Q4 Profit Despite Revenue Growth

For the quarter ended March 2025 (Q4 FY25), Eternal reported a net profit of ₹39 crore. This represents a fall of 78% compared to the ₹175 crore profit recorded in the same period a year ago. This decline occurred despite a 64% year-on-year (YoY) increase in revenue from operations, which rose to ₹5,833 crore in Q4 FY25.

The primary reasons for the decline in net profit was a significant increase in total expenses, which climbed 68% YoY to ₹6,104 crore. The company attributed these higher costs mainly to increased investments in its quick commerce vertical, Blinkit, and elevated infrastructure spending across all segments. Consolidated adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the March quarter also saw a decline, falling 15% YoY to ₹165 crore. 

Despite the quarterly profit decline, Eternal's profit for the full financial year 2024-2025 increased by 50% to ₹527 crore, up from ₹351 crore in the previous fiscal year. The company's cash balance stood at ₹18,824 crore at the end of March 2025, a slight decrease from ₹19,235 crore in the preceding quarter.

Food Delivery Business Remains Stable Amid Minor QoQ Decline

Eternal's core food delivery business demonstrated stability. Adjusted revenue for the segment grew 17.5% YoY to ₹2,409 crore in Q4 FY25. The Gross Order Value (GOV) for food delivery was reported at ₹9,778 crore, showing a 1.3% quarter-on-quarter (QoQ) decline, though it increased from ₹8,439 crore in Q4 FY24. The adjusted EBITDA margin for the food delivery segment was reported at 5.7%. The QoQ GOV decline was attributed to factors including persistent sluggish demand, a temporary shortage of delivery partners due to high demand in quick commerce, and increased competition from packaged food delivery.

The quick commerce arm, Blinkit, experienced a period of strong growth. Blinkit's revenue surged 122% YoY to ₹1,709 crore in Q4 FY25, up from ₹769 crore a year earlier. The Net Order Value (NOV) also saw significant increases, rising 53% YoY and 19% QoQ. Blinkit maintained strong momentum with a GOV growth of 20.8% QoQ. 

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