Eternal Ltd (formerly Zomato) Q2FY26 – From Delivering Momos to Delivering Metaverse Dreams: The Food-Tech Soap Opera Nobody Asked For
1. At a Glance
If you thought Eternal Ltd (a.k.a. Zomato rebranded for spiritual healing) was just about delivering biryanis faster than your ex replied to texts — think again. This ₹3.26 lakh crore behemoth is now a mix of food, groceries, logistics, event tickets, and existential branding.
At a current price of ₹338, the stock is up 27% YoY, but with a P/E of 1,736, it’s also India’s favorite financial comedy. Despite a sales surge of 183% YoY to ₹13,590 crore in Q2FY26, net profit fell 63% QoQ to ₹65 crore, which in startup-speak translates to: “We’re investing in growth.”
With a ROE of 1.7%, ROCE of 2.6%, and zero promoter holding, Eternal isn’t just a listed company — it’s a public playground for FIIs, DIIs, and believers in eternal optimism. And yes, they just got slapped with a ₹64 crore GST penalty, but apparently, that’s just “part of the ecosystem.”
2. Introduction – The Food Delivery App That Ate Everything
Back in 2010, Deepinder Goyal started Zomato to help people stalk menus. Fifteen years later, he’s serving an empire that delivers everything but your sense of financial security.
The rebrand to “Eternal Ltd” in 2025 was meant to mark a new beginning — blending Zomato + Blinkit + Hyperpure + Events + Paytm Insider into one gigantic buffet of tech-led chaos. It’s like if Swiggy, Amazon, and BookMyShow had a baby… and named it after a yoga retreat.
From “30 minutes or free” to “instant groceries + concert tickets + restaurant ingredients”, Eternal is now the omnivorous tech chimera of Indian consumer life. Its ecosystem is a maze of food delivery (Zomato), grocery delivery (Blinkit), restaurant supplies (Hyperpure), and now event ticketing (Paytm Insider acquisition).
Question: at what point does this stop being “synergy” and start being “ADHD”?
3. Business Model – WTF Do They Even Do Now?
Eternal operates four verticals that sound different but all burn money the same way:
1. Food Delivery (44% of revenue) Still the crown jewel, Zomato’s food arm processed 753 million orders in FY24, with ₹32,224 Cr GOV. Average order value? ₹428. Not bad — except when your delivery guy’s petrol bill equals your profit margin.
2. Hyperpure (30%) The B2B arm that sells ingredients to restaurants. FY25 H1 revenue doubled (+97% YoY) as 76,500 outlets now buy paneer and paper napkins through Eternal. Think of it as “BigBasket for Biryani chefs.”
3. Quick Commerce – Blinkit (23%) Blinkit is the chaos child that made “10-minute delivery” India’s new adrenaline sport. FY24 GOV: ₹12,469 Cr, with an avg order ₹613. That’s 526 stores delivering groceries faster than you can say “bhindi.” EBITDA still wobbly, but GOV per store/day up 222%, proving people love convenience more than logic.
4. Going Out & Others (3%) Restaurant discovery, event tickets, and live concerts via Zomato Live + Paytm Insider integration. GOV hit ₹3,225 Cr in FY24, and management says “growth is 170% YoY.” Translation: everyone’s back to drinking outside.
4. Financials Overview
Metric
Latest Qtr (Q2FY26)
YoY Qtr (Q2FY25)
Prev Qtr (Q1FY26)
YoY %
QoQ %
Revenue (₹ Cr)
13,590
4,799
7,167
183%
89%
EBITDA (₹ Cr)
239
226
115
6%
108%
PAT (₹ Cr)
65
176
25
-63%
160%
EPS (₹)
0.07
0.20
0.03
-65%
133%
Revenue is doubling faster than your diet failures, but profits are shrinking like your savings on Blinkit. The company proudly flaunts an Operating Margin of 2%, which is like saying “We finally broke even on one samosa.”
5. Valuation Discussion – Fair Value Range (aka Faith vs Math)
Method 1: P/E Method EPS = ₹0.19 → Even calculators reject 1,736x P/E. Let’s be generous: tech sector avg 60x earnings → Fair value = ₹11–₹12. Yup, your ₹338 stock would look fairly priced only if it earned like Infosys.
Method 2: EV/EBITDA Method EV = ₹3,28,991 Cr, EBITDA = ₹1,915 Cr (annualized) → EV/EBITDA = 172x. Industry avg 25x → Fair range = ₹50–₹80.
Method 3: DCF (Discounted Curry Fantasy) Assume 25% CAGR in cash flow (if Blinkit stops burning cash by 2030), discount at 10%. Fair value ~₹90–₹120.
🧾 Educational Fair Value Range:₹50 – ₹120 (Disclaimer: purely for financial comedy and educational insight. Not advice.)
6. What’s Cooking – News, Triggers, Drama
GST Hellfire: Oct 2025 saw an adjudication order for ₹64 Cr GST + ₹64 Cr penalty. Eternal plans to appeal, or meditate.
Bistro by Blinkit Slump Sale: Blinkit’s food outlet biz sold for ₹57 Cr.
