Eternal Ltd Q3 Profit Jumps 73% to ₹102 Cr, CEO Resigns

Introduction

Eternal Ltd, formerly Zomato Ltd, announced a strong performance for the third quarter of fiscal year 2026, with a consolidated net profit of ₹102 crore. This marks a 72.9% increase from the ₹59 crore reported in the same quarter of the previous year. The company's revenue from operations saw a remarkable 201.8% year-on-year surge, reaching ₹16,315 crore. This financial growth was accompanied by a significant leadership transition, as founder and CEO Deepinder Goyal announced his resignation, with Blinkit CEO Albinder Singh Dhindsa set to take over.

Financial Performance in Detail

The company's financial results for the quarter ending December 31, 2025, highlight sustained momentum. Revenue grew sequentially by 20% from ₹13,590 crore in Q2 FY26. Net profit also showed strong sequential growth, rising 56.9% from ₹65 crore in the previous quarter. This performance was driven by robust expansion across its primary business verticals, particularly the quick commerce segment.

Total expenses for the quarter rose to ₹16,493 crore, a proportional increase reflecting the company's scaling operations and a change in its business model for quick commerce. Despite higher costs, the company's Profit Before Tax (PBT) jumped 37.1% year-on-year to ₹170 crore. The Earnings Per Share (EPS) for the quarter improved to ₹0.11, up from ₹0.06 in the corresponding quarter last year.

Quick Commerce Drives Revenue Surge

The primary driver behind the massive revenue growth was the quick commerce business, Blinkit. Its adjusted revenue surged an astounding 776.1% year-on-year to ₹12,256 crore. This increase is largely attributed to an accounting shift where Eternal adopted an inventory ownership model for Blinkit. Under this model, the company reports the full value of goods sold, rather than just marketplace commissions. On a like-for-like basis, which adjusts for this change, the quick commerce revenue still grew by a strong 153% YoY.

Significantly, Blinkit achieved a major milestone by turning Adjusted EBITDA profitable for the first time, reporting a profit of ₹4 crore. This is a substantial turnaround from the ₹156 crore loss recorded in the previous quarter and a ₹103 crore loss in the same quarter last year.

Performance of Other Key Segments

Eternal's food delivery business continued its steady growth trajectory. Adjusted revenue for this segment increased by 26.5% year-on-year to ₹3,053 crore. The Net Order Value (NOV) grew 16.6% YoY to ₹9,846 crore, supported by a modest improvement in demand and the impact of promotions for its Gold subscription members. The platform's average monthly transacting customers also increased to 24.9 million.

Hyperpure, the B2B restaurant supply business, also reached a key milestone. It turned Adjusted EBITDA positive for the first time, recording a profit of ₹1 crore. The segment's revenue grew by a healthy 33% year-on-year.

The Going-Out business saw its NOV grow by 20% YoY, although it reported an Adjusted EBITDA loss of ₹121 crore due to continued investments in category creation. The company expects these losses to decrease sequentially.

Major Leadership Transition

In a landmark announcement, the company's board accepted the resignation of Deepinder Goyal as Managing Director and CEO, effective February 1, 2026. Goyal, who founded the company in 2008, will transition to the role of Vice Chairman. In a letter to shareholders, he stated his desire to focus on new, higher-risk ventures that are better pursued outside a public company framework.

Albinder Singh Dhindsa, the current CEO of Blinkit, has been appointed as the new CEO of Eternal Ltd. This move signals the increasing importance of the quick commerce vertical to the company's overall strategy. Goyal expressed confidence in Dhindsa's ability to lead day-to-day execution and operating priorities.

Operational Review and Market Reaction

For the nine-month period in FY26, Eternal's revenue grew 157% to ₹37,072 crore. However, net profit for this period declined by 60.7% to ₹192 crore, primarily due to significant investments in expanding its subsidiaries like Blinkit and Hyperpure. The company also faced operational challenges, falling short of its dark store rollout target for Blinkit by about 70 stores due to pollution-related construction delays in its largest market. Management has reaffirmed its commitment to reaching 3,000 stores by March 2027.

Following the announcement of the results and the leadership change, the company's stock performed well. The scrip rallied 4.98% to close at ₹283.40 on the BSE, indicating a positive investor response to the strong growth metrics and strategic clarity.

Conclusion

Eternal Ltd's third-quarter results demonstrate a successful scaling of its quick commerce operations, which has become the primary engine of its revenue growth. The profitability milestones achieved by both Blinkit and Hyperpure underscore improving operational efficiency. The transition in leadership marks a new chapter for the company, with a clear focus on leveraging the synergies between its various platforms under the new CEO. The market will be closely watching how the new leadership builds on this momentum to drive sustained profitability.