Eternal Q3 Profit Jumps 73%; CEO Deepinder Goyal Resigns

Introduction

Eternal Limited, the parent company of Zomato and Blinkit, announced two significant developments on January 20, 2026. The company reported a robust 72.88% year-on-year increase in its consolidated net profit for the third quarter of FY26. Simultaneously, it revealed a major leadership transition, with founder Deepinder Goyal stepping down as the Group CEO and Managing Director.

Stellar Quarterly Performance

Eternal posted a consolidated net profit of Rs 102 crore for the quarter ending December 31, 2025, a substantial rise from the Rs 59 crore profit in the same period last year. The company's revenue from operations saw a massive surge of over 201%, reaching Rs 16,315 crore compared to Rs 5,405 crore in Q3 FY25. This growth was primarily attributed to an accounting change in its quick commerce business, which now recognizes the full value of goods sold. On a like-for-like basis, the revenue growth was a strong 64% year-on-year.

Key Financial Metrics

The company's adjusted EBITDA for the quarter stood at Rs 364 crore, marking a 28% year-on-year growth. This translates to an adjusted EBITDA margin of approximately 2.2% of its revenue from operations. Profit before tax also saw a healthy jump of 37.1% year-on-year, reaching Rs 170 crore.

A New Chapter in Leadership

In a move that surprised the market, Deepinder Goyal announced his resignation as Group CEO, effective February 1, 2026. He will transition to the role of Vice Chairman on the board, pending shareholder approval. Albinder Dhindsa, the current CEO of Blinkit, will take the helm as the new Group CEO of Eternal Limited.

Goyal's Rationale for Stepping Down

In a detailed letter to shareholders, Goyal explained his decision. He stated a growing interest in pursuing "new ideas that involve significantly higher-risk exploration and experimentation," which he believes are better suited for ventures outside a public company's framework. He emphasized that this transition allows Eternal to maintain its focus while giving him the space for these new pursuits. Goyal expressed full confidence in his successor, stating, "He has the DNA of a battle-hardened founder and his ability to execute far exceeds mine. He is more than capable of leading Eternal as Group CEO."

Blinkit's Breakout Quarter

The quick commerce arm, Blinkit, was a standout performer and reached a significant milestone. For the first time, it turned Adjusted EBITDA profitable, reporting a profit of Rs 4 crore. This is a remarkable turnaround from the Rs 156 crore loss recorded in the previous quarter. Blinkit's Net Order Value (NOV) soared by 120.9% year-on-year to Rs 13,300 crore. Its adjusted revenue grew an astounding 776.1% YoY to Rs 12,256 crore, reflecting both organic growth and the accounting shift.

Performance of Other Segments

• Food Delivery (Zomato): The core food delivery business continued its steady growth. Adjusted revenue increased by 26.5% YoY to Rs 3,053 crore, while its Net Order Value (NOV) grew 16.6% YoY to Rs 9,846 crore. Goyal attributed this to an improved demand environment and the impact of revised free delivery criteria for Gold members.
• Hyperpure (B2B Supplies): The restaurant supply business also achieved profitability for the first time, posting an Adjusted EBITDA profit of Rs 1 crore, compared to a Rs 5 crore loss in the prior quarter. The segment grew steadily at 33% year-on-year.
• Going-out (District): This segment saw its NOV grow by 20% YoY. However, it reported an increased Adjusted EBITDA loss of Rs 121 crore due to continued investments in category creation.

Market Reaction and Future Outlook

Investors reacted positively to the strong earnings report, with Eternal's stock rallying 4.98% to close at Rs 283.40 on the BSE. Looking ahead, Goyal expects the food delivery business's growth to gradually move towards 20% YoY. For Blinkit, despite falling short of its store rollout target for Q3 due to pollution-related restrictions, the company reaffirmed its goal of reaching 3,000 stores by March 2027.

Analysis of the Transition

The leadership change marks a pivotal moment for Eternal. Goyal, the founder who built the company over 18 years, is stepping away from daily operations to focus on broader strategy and new ventures. The appointment of Albinder Dhindsa, the architect of Blinkit's success and recent profitability, signals a clear strategic priority. With quick commerce now contributing the largest share of revenue and demonstrating immense growth potential, placing its leader at the helm of the entire group underscores Eternal's commitment to scaling this vertical.

Conclusion

Eternal Limited's third-quarter results showcase a company in strong financial health, with multiple business segments achieving profitability milestones. The simultaneous leadership transition is a strategic move to align the company's top leadership with its biggest growth engine, Blinkit. As Deepinder Goyal takes on a strategic advisory role, Albinder Dhindsa is tasked with steering the group through its next phase of execution-focused growth, particularly in the competitive quick commerce space.