Eternal Q1 Results: Zomato’s Parent Shares Surge 10% Despite 90% Profit Drop

Eternal (Zomato) moved sharply after the company reported its earnings for Q1 FY26 (April–June 2025). Even with a huge drop in net profits, revenue and business volumes were in the growth zone, driven largely by Blinkit, the quick commerce business. Here is a simple breakdown of how Zomato Q1 results 2026 are reinventing the company, how Zomato share price and eternal share price have reacted, and what is coming next for investors.

Headlines from Zomato Q1 Results 2026

• Revenue hits new highs : Zomato has seen a 70% year-on-year revenue growth for Q1 FY26, rising to ₹7,167 crore from ₹4,206 crore.

• Profit sinks : Net profit decreased a whopping 90% from a year ago to a measly ₹25 crore versus ₹253 crore last year.

• Operating expenses shot up : Operating expenditures increased 77% over a year (₹7,433 crore versus ₹4,203 crore) largely on investments with quick commerce and the "going out" business.

• Quick commerce surpasses food delivery : For the first time, Blinkit's order value exceeded that of food delivery. Quick commerce is now the most sizeable business segment for Zomato.

Detailed Q1 Result Table

Zomato Share Price NSE Perfomance

When the results were announced, Zomato share price NSE (now listed as "Eternal" on the NSE) rose by more than 9%. The stock traded between ₹271.20–₹276.50, hitting intraday highs after the earnings release. 

This positive move on the eternal share price is notable even with the significant profit drop, as the investors were enthusiastic about the sizeable revenue growth and impressive Blinkit performance.

Why Did Profit Fall Despite Booming Revenue?

The main reason profits were down is Zomato’s aggressive investments.

• Spending has increased on building more Blinkit dark stores, as it opened 243 new stores in the quarter and now has 1,544 Blinkit stores.

• Zomato is investing more spending on brand, logistics, and expansion to get more businesses now as there are profits later.

Zomato’s Key Business Segments in Q1 FY26

• Quick Commerce (Blinkit) : Blinkit revenue was up 154% YoY. Blinkit generated almost half the annualized Net Order Value and has become the company's number one line of business. 

• Food Delivery : The NOV for the classic food delivery business only increased by 13% YoY, and there are some signs of slowing growth.

• Going Out : Zomato's "District" (dining/events) business has grown, with an annualized Gross Merchandise Value of ₹8,000 crore. This segment continues to be small, but growing quickly.

Management View & Outlook

Eternal’s management, fronted by CEO Deepinder Goyal, noted that the profit bands slowdown was anticipated as “the business recoups from the demand slowdown witnessed at the end of 2024.” They don’t expect food delivery NOV will be north of 20% this year—but do expect it to be above 15% with a goal to get it to a point closer to 20% next year.

CFO Akshment Goyal stated the focus is still on investments for long-term growth in Blinkit and new verticals, even if it means running into some short-term profit reductions.

Zomato Share Price Target After these results:

Most major brokerages raised their Zomato share price target due to the solid revenue and Blinkit performance.

• Jefferies : ₹400 (upgraded to Buy)

• Nomura : ₹300 (Buy)

• Motilal Oswal : ₹310 (Buy)

• ICICI Securities : ₹315 (Buy)

• Macquarie : ₹150 (Underperform)

Most experts agree that Blinkit is the new growth engine, but some warn about the risk of profits taking time to come back as spending stays high.

Key Takeaways for Investors

• Revenue is at record highs. Zomato's Q1, 2026 results show the business is scaling rapidly, especially with Blinkit now larger than food delivery.

• Despite Zomato only being profitable as a group, short-term profit pressure does not worry the market. Investors are excited to see upside once Binkit is more mature, as the Zomato share price on NSE jumped last week, as well as their eternal share price.

• Expect further investment over the coming quarters, as the management team is explicit that growth (especially with Blinkit) will come before any immediate plans for profits.

Anyone following Zomato's transition from a food delivery company to a leader in food and daily essentials delivery should no doubt be impressed with the latest Zomato earnings report. It suggests Zomato is betting big on being India's leader in food and daily essentials delivery. If they continue at this pace, the long-term outlook for the Zomato share price will remain positive even if quarterly profits are volatile.

Disclaimer : This article is for informational purposes only and should not be considered financial advice. Please consult a professional before investing.

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