Zomato Limited, now operating under Eternal Limited, reported a sharp improvement in its Q4FY26 financial performance, reflecting the continued scaling of its quick commerce business alongside stable execution in food delivery.

The company posted a net profit of ₹174 crore for the quarter, registering a 346.2% year-on-year increase and a 70.6% sequential rise. Revenue came in at ₹17,292 crore, up 196.5% year-on-year and 6% quarter-on-quarter. EBITDA rose to ₹486 crore, marking a 575% annual increase, with margins expanding to 2.8% from 1.2% a year ago and 2.3% in the previous quarter.

However, the performance showed a mixed comparison against market expectations. Net profit came below estimates of ₹191 crore, while revenue slightly exceeded expectations. EBITDA and margins were stronger than anticipated, indicating better cost efficiency and operating leverage despite the profit miss.

At a consolidated level, the company reported a Gross Order Value (NOV) of ₹26,880 crore, growing 54% year-on-year. Adjusted revenue stood at ₹17,680 crore, while adjusted EBITDA came in at ₹429 crore. The company also maintained a strong cash position of ₹17,972 crore, providing financial flexibility for ongoing investments.

Segment performance highlights a diverging but complementary growth strategy.

The food delivery business continues to act as a stable cash generator. NOV for the segment grew 19% year-on-year to ₹9,757 crore, with adjusted EBITDA at ₹532 crore, translating to a margin of 5.5% of NOV. This indicates maturity in the core business, with profitability now more predictable and less dependent on aggressive incentives.

Quick commerce, led by Blinkit, remains the primary growth engine. NOV surged 95% year-on-year to ₹14,386 crore, while adjusted revenue grew sharply. EBITDA stood at ₹37 crore, representing just 0.3% of NOV, indicating that the business is nearing breakeven at scale. The rapid expansion in dark stores and order density continues to drive operating leverage, though margins remain thin due to high execution costs.

The going-out segment, branded as District, remains in an investment phase. While NOV grew 47% year-on-year, the segment posted a negative EBITDA of ₹81 crore, reflecting continued spending on customer acquisition and platform expansion.

The Hyperpure B2B segment showed mixed trends, with revenue declining year-on-year but improving sequentially on a like-for-like basis. EBITDA remained marginally positive, suggesting gradual stabilisation.

What is changing in Eternal’s business model is the balance between growth and profitability. Earlier phases were marked by heavy cash burn to capture market share, particularly in quick commerce. The current results suggest that the company is entering a phase where scale is beginning to translate into operating leverage, especially in Blinkit, without compromising growth momentum.

Why this matters for markets is tied to sustainability of margins. Investors have been closely tracking whether quick commerce can become structurally profitable. The near-breakeven status of Blinkit, combined with steady food delivery margins, strengthens the argument that Eternal’s multi-segment model can generate long-term value.

Market Impact on India

The results reinforce confidence in India’s consumption-led digital economy. Strong growth in both food delivery and quick commerce indicates continued urban demand and increasing adoption of convenience-driven services. It also highlights the scalability of tech-enabled logistics networks.

Sector Impact

Within the internet and consumer tech sector, Eternal’s performance sets a benchmark for balancing growth with profitability. Quick commerce players may face increased pressure to demonstrate similar progress toward breakeven, while food delivery peers will need to defend margins in a maturing market.

Bull vs Bear Scenario

The bullish case rests on sustained growth in quick commerce with improving margins, combined with stable profitability in food delivery. Strong cash reserves provide a cushion for continued expansion.

The bearish view focuses on margin fragility. Quick commerce remains a low-margin business, and any increase in competition or logistics costs could delay profitability. The miss on net profit versus estimates also signals that earnings consistency is still evolving.

Risk Section

Key risks include rising competitive intensity in quick commerce, high customer acquisition costs, execution challenges in scaling dark store networks, and regulatory scrutiny around gig economy practices. Any slowdown in urban consumption trends could also affect growth momentum.

Overall, Eternal’s Q4FY26 results point to a business transitioning from aggressive expansion to disciplined scaling, with early signs of profitability emerging in its fastest-growing segment.