Eternal Ltd, formerly known as Zomato, reported a 7% surge in share price on Monday. The move shocked the market due to its 90% YoY drop in Q1 net profit.
Eternal Ltd, formerly known as Zomato, reported a 7% surge in share price on Monday. The move shocked the market due to its 90% YoY drop in Q1 net profit. This was attributed to its strong performance by Blinkit, and a sharp increase in revenue of 70% to ₹7,167 crore.
Why Is There a Market Rally for Eternal?
The stock closed 5% higher at ₹271.70 on the BSE, despite a jaw-dropping 90% year-on-year drop in Q1 net profit. It’s all about the Blinkit boom.
Despite a slowdown in the food delivery business at Eternal, their quick commerce vertical “Blinkit” has shown an upward move. For the first time, Blinkit’s net order value exceeded food delivery in a quarter. It signals a swift change in consumer behavior.
The company now holds a healthy cash reserve of ₹18,857 crore. This gives Eternal a runway to continue investing in its growth verticals regardless of a dip in profits.
Some technical analysts predict a potential upside in the coming days; the stock may go up to ₹286. Experts also remain bullish and see an additional thrust after the results.
Investors are seeing the future growth prospects in the company. According to the company’s data:
• Blinkit’s Net Order Value (NOV): 127% YoY growth
• Monthly transacting customers: 123% growth
• Total Blinkit Stores: 1,544 in Q1
• Prospective Blinkit Stores: 2,000 by December 2025
However, Eternal reported a decline in Net Profit. As per the company data:
• Total Revenue: 70% YoY growth
• Value: ₹7,167 crore
• Consolidated Net Profit: ₹25 crore (vs. ₹253 crore a year ago)
About Eternal (Zomato) Company
Eternal (Zomato) was founded by Deepinder Goyal and Pankaj Chaddah in 2008. The company has its headquarter in Gurugram, Haryana. Zomato stated working as an aggregator of restaurant menus by providing menu information, user reviews, and recommendations.
With its food delivery business, Zomato has transformed the way people find and enjoy their food. Zomato has now grown into a huge food tech company with a vast network that connects restaurants, consumers, and delivery partners across India.
The company with its core mission of providing Better Food for more people is driven through innovative technology ecosystem, deep penetration, and a big focus on consumer experience.
The company, with its core mission of providing “Better Food for More People,” is driven by an innovative technology ecosystem, deep penetration, and a strong focus on consumer experience.
Also Read: Jasprit Bumrah, Mary Kom Join SRK & AR Rahman In Trending Zomato Ad
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
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