Eternal Q1 preview: Strong GOV growth likely for Blinkit, Zomato
Eternal’s Q1 performance is likely to be driven by robust growth in Blinkit and steady traction in food delivery, despite some margin pressures.
Deepinder Goyal-led Eternal, the parent company behind Zomato, Blinkit, and others, is set to announce its financial results for the first quarter (Q1) of FY26 at the close of markets today.
According to a recent report by brokerage JM Financial Institutional Securities, (JMFISL) the Delhi-NCR-based company is expected to report EBITDA (earnings before interest, taxes, depreciation, and amortisation) improvement to Rs 170 crore in the three months ended June 30, 2025, from Rs 72 crore in the previous quarter.
During the same period, analysts expect its after-tax profit to improve to Rs 78.5 crore from Rs 39 crore in the previous quarter.
Ahead of the earnings announcement, Eternal shares were trading 1.01% higher at Rs 259.8 apiece in mid-day trade.
Blinkit is expected to report double-digit growth in gross order value (GOV) and revenue. Analysts expect 20% GOV growth, driven by a surge in order volumes and monthly transacting users.
While the brokerage sees take rates—the amount the quick commerce segment makes on every order—to remain flat at around 18.1%, it expects contribution margin to expand due to higher average order values.
According to a report by Axis Capital, GOV growth should remain strong, with Blinkit posting 135% YoY growth. The brokerage expects Blinkit's contribution margin to remain flat sequentially, indicating no change in profitability on a unit level, with an average order value of around Rs 674.
Foodtech arm Zomato, Eternal's largest subsidiary, is expected to clock sequential growth of 9%, with a slight contraction in its contribution margin from the fourth quarter.
"Medium term should see some uptick on newer offerings like quick food (Bolt, Bistro), platforms’ push to increase AOV and frequency in Tier I markets and greater penetration push in Tier II. We do not expect Rapido’s entry to meaningfully impact their business," noted Axis Capital in its analysis.
Axis Capital expects a 16% YoY growth in food delivery GOV, broadly similar to Q4 trends. It also sees higher delivery fleet costs due to summer and early monsoon to lead to a minor QoQ dip in contribution margin and adjusted EBITDA.
"Food delivery growth on a YoY basis will be a tad slower than 4QFY25 on account of broader consumption slowdown and an unfavourable base. We see monthly transcating users growing to 22.1 million versus 20.9 million in 4QFY25," stated the JMFISL.
The brokerage expects food delivery take rates to remain flat at around 21.1% in Q1 FY26.
(The copy was updated with additional details.)
Edited by Kanishk Singh