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Eternal Ltd, previously listed as Zomato, reported a net profit of Rs 39 crore for January-March 2025 (Q4FY25), falling nearly 78% from the corresponding quarter of last financial year due to higher costs in its quick commerce business Blinkit, on Thursday. It had posted a net profit of Rs 175 crore in the year-ago period.
The company’s revenue from operations stood at Rs 5,833 crore, up from Rs 3,562 crore a year ago. Meanwhile, revenue from Blinkit stood at Rs 1,709 crore, compared to Rs 769 crore. “Blinkit is on track to get to 2,000 stores by December 2025, food delivery growth remains below our expectations for now'', the company said.
Despite a sluggish demand environment which affected its net order value (gross order value excluding discounts), it added 294 net new stores in Q4FY25, the highest-ever in a single quarter. Around 40% of the total 1,301 stores are underutilised, opened in the last two quarters alone (216 in Q3FY25 and 294 in Q4FY25), it added.
The company also announced that it is shutting down its 15-minute quick food delivery business Zomato ‘Quick’ and home-made meal service ‘Everyday’ as these verticals are not turning profitable.
"We are actually shutting down both these initiatives as we are not seeing the path to profitability in these without compromising on customer experience. The current restaurant density and kitchen infrastructure is not set up for delivering orders in 10 minutes which leads to inconsistent customer experience. As a result, we did not see any incrementality in demand," Chief Executive Officer Deepinder Goyal said in a letter to shareholders.
Quick commerce companies in India have been facing tight competition as the market remains constricted and current growth opportunities are limited. This becomes even more challenging as the space continues to be dictated by discounting and offers. Eternal highlighted the impact of this competition contributing to margin pressure, with its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) coming in at Rs 165 crore, down 15% from Rs 194 crore in the same quarter last year.