Zomato Shares Surge Nearly 15% After Strong Q1 Results, Optimistic Blinkit Outlook
The rally comes a day after the stock gained nearly 6 per cent on Monday, continuing a strong upward trend. Eternal also emerged as the top performer among Sensex and Nifty
Shares of Eternal, the parent company of food delivery platform Zomato and quick commerce service Blinkit, surged on Tuesday following its June quarter earnings announcement. The stock climbed 14.89 per cent to reach Rs 311.60 on the Bombay Stock Exchange (BSE), marking its 52-week high. On the National Stock Exchange (NSE), it rose 14.55 per cent to hit a high of Rs 311.25.
The rally comes a day after the stock gained nearly 6 per cent on Monday, continuing a strong upward trend. Eternal also emerged as the top performer among Sensex and Nifty constituents during morning trading, reflecting strong investor confidence in the company’s growth strategy.
Analyst sentiment around the company’s performance was boosted not only by the financial results but also by the tone of management. In a note, JM Financial Institutional Securities Limited remarked, “Eternal once again surprised us positively on Blinkit. This time, though, the surprise was more on management commentary than the reported numbers, as it was quite a contrast to the cautious tone post 4QFY25 results,” according to a PTI report.
Revenue Surges, Profit Drops Year-on-Year
Eternal posted a consolidated net profit of Rs 25 crore for the April-June quarter. While the figure was significantly lower than the Rs 253 crore reported in the same period last year, the company attributed the decline to ongoing investments in its quick commerce and out-of-home segments.
The company clarified that the financials are not directly comparable with the previous year’s quarter due to strategic acquisitions. In August 2024, Eternal completed the purchase of Orbgen Technologies Pvt Ltd and Wasteland Entertainment Pvt Ltd—companies that manage movie ticketing and live events, respectively—from One 97 Communications Ltd, the parent company of Paytm.
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Quick Commerce Surpasses Food Delivery
A major highlight for the quarter was the rise in quick commerce demand. Eternal reported revenue from operations of Rs 7,167 crore, a sharp increase from Rs 4,206 crore in the year-ago period. Notably, for the first time ever, the net order value (NOV) from quick commerce surpassed that of food delivery for the entire quarter, signaling a shift in consumer behavior and a growing appetite for rapid delivery services.
Eternal, formerly known as Zomato Limited, rebranded itself in March to reflect its broader business vision. With expanding verticals in food, quick commerce, events, and entertainment, the company appears to be positioning itself as a comprehensive consumer-tech platform.
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