Eternal Ltd (Formerly Zomato) – ₹3 Lakh Crore Ka Delivery Circus That Still Can’t Deliver Profits
1. At a Glance
Eternal Ltd (the artist formerly known as Zomato) is India’s favourite “10-minute delivery” company—because it takes investors 10 seconds to realize profits are missing. With a market cap bigger than HDFC Life and an EPS of ₹0.33 (yes, less than the cost of your pani puri plate), Eternal promises food, groceries, tickets, and maybe your kidney if margins don’t improve. Quick commerce is their darling, GST notices are their side hustle, and profitability is still somewhere between “coming soon” and “out for delivery.”
2. Introduction
Ah, Eternal Ltd. The company that started with restaurant reviews, then graduated to food delivery, and now proudly owns Blinkit—the only place where you can buy Maggi, condoms, and fairy lights at 2 a.m. faster than your parents can ask “Shaadi kab karoge?”
From being the hero of lockdown Netflix-and-Biryani nights, Eternal has morphed into a multi-headed hydra: food delivery, Hyperpure (aka mandi in a suit), Blinkit (because groceries are more addictive than gulab jamun), and dining-out/event-ticketing (because why stop at food when you can sell comedy tickets too?).
The company also thought a name change from Zomato to Eternal would bring eternal profits. Spoiler alert: it didn’t. Margins are thinner than wafer papad, debt is now a thing (₹2,045 Cr), and GST officers are treating them like Amazon Prime customers—new notices every month.
Still, the stock trades at a PE of 1,046. Because in India, if it ends with “tech,” valuations don’t need logic, they need vibes.
Question for you: if Blinkit delivers in 10 minutes, why does profitability take 10 years? Comment below.
3. Business Model – WTF Do They Even Do?
Eternal’s empire has four kingdoms:
Food Delivery (44% of revenue) – Zomato app lets you scroll endlessly for restaurants, order butter chicken at 1 a.m., and then regret paying ₹350 delivery fees. Orders hit 753 Mn in FY24, GOV ₹32,224 Cr.
Hyperpure (30%) – The B2B mandi supplying restaurants. Warehouses: 0.7 Mn sq ft. Outlets served: 76,500. Fancy name, but basically wholesale with a PowerPoint.
Quick Commerce via Blinkit (23%) – Your neighbourhood kirana store in steroids. 526 dark stores, GOV ₹12,469 Cr, and AOV ₹613. Delhi grew 70% YoY—apparently Dilliwalas are binge-buying chips at 11 p.m.
Going Out & Others (3%) – From dining-out to event ticketing (Paytm Insider acquired for ₹2,048 Cr). So yes, the same app where you order samosas now sells you Coldplay tickets.
Basically, Eternal Ltd is a mashup of Swiggy, BigBasket, DMart, and BookMyShow—with the financial discipline of Baba Ka Dhaba.
4. Financials Overview
Metric
Latest Qtr (Q1FY26)
YoY Qtr (Q1FY25)
Prev Qtr (Q4FY25)
YoY %
QoQ %
Revenue
₹7,167 Cr
₹4,206 Cr
₹5,833 Cr
70.4%
22.8%
EBITDA
₹115 Cr
₹177 Cr
₹72 Cr
-35.0%
59.7%
PAT
₹25 Cr
₹253 Cr
₹39 Cr
-90.1%
-35.9%
EPS (₹)
0.03
0.29
0.04
-89.7%
-25.0%
Commentary: Revenue zoomed like a Domino’s delivery boy, but profits crashed like your Swiggy order during IPL finals. EPS is 3 paise—basically if you hold 100 shares, you’ve earned enough to buy half a Vada Pav.
5. Valuation – Fair Value Range Only
Let’s do the math auditors hate:
P/E Method: EPS ₹0.33 × industry PE 30 = ~₹10. So CMP ₹324 is like paying for Dom Pérignon and getting Thums Up.
EV/EBITDA: EV ₹3,11,344 Cr ÷ FY25 EBITDA ₹575 Cr = 541x. Even Reliance Jio would laugh. A “reasonable” EV/EBITDA of 30 implies ~₹18,000–₹20,000 Cr valuation i.e., stock at ₹20–25.
DCF: Assuming optimistic 25% revenue CAGR for 10 years, 5% terminal growth, 12% discount rate, fair value ₹40–₹70.
Fair Value Range (Educational Purpose Only): ₹20–₹70. CMP = ₹324. Gap = logic vs. market.
6. What’s Cooking – News, Triggers, Drama
Name Change: Zomato → Eternal. Because what better way to distract investors than with branding?
Paytm Insider Buyout: Bought for ₹2,048 Cr. So now Eternal sells samosas and Shah Rukh Khan tickets.
GST Raids: ₹402 Cr demand notice in Dec 2024, new ones in Aug 2025. GST officers clearly love free food.
Fund Raise: QIP of ₹8,500 Cr in Nov 2024. Investors basically funding your Maggi at 3 a.m.
