01 — At a Glance
The Super-Growth Play That’s Still Burning Cash (But Less Of It)
- 52-Week High / Low₹368 / ₹190
- Q3 FY26 Revenue₹16,315 Cr
- Q3 FY26 PAT₹102 Cr
- TTM EPS₹0.25
- Adjusted EBITDA Q3₹364 Cr
- Book Value₹31.9
- Price to Book7.28x
- Dividend Yield0.00%
- Debt / Equity0.11x
- 1Yr Return+7.26%
The Story in Numbers: Eternal (formerly Zomato) posted ₹16,315 crore in Q3 revenue, up 201.85% YoY. But here’s the twist: adjusted EBITDA was ₹364 crore, yet reported PAT came in at ₹102 crore. Translation: Rs. 1,422 crore of other income (including FX gains and investment appreciation) is doing heavy lifting. Strip that out, and core operating profit looks skinnier. The stock trades at a jaw-dropping P/E of 972x on TTM earnings. Blinkit is the crown jewel—finally profitable on adjusted terms. But the CEO exit in early Feb 2026 sent jitters through the market. Because nothing screams “disciplined management” like a founder stepping down just as things get good.
02 — Introduction
Welcome to Eternal: Where Growth Is Insane, But Nothing Else Is Sane
Eternal Ltd (formerly Zomato Limited) is India’s answer to “what if we threw 10 businesses at the wall and kept the ones that stuck?” Started in 2010 as a restaurant discovery app, the company now operates food delivery, quick commerce (Blinkit), a B2B supply platform (Hyperpure), a going-out ticketing platform (District), a micro-meal service (Bistro), and probably a few ventures you’ve never heard of.
In FY25, the company did ₹42,905 crore in revenue with a net profit of ₹231 crore—which sounds fine until you realize ₹1,422 crore of that is “other income.” Yes, other income is 6x the actual operating profit margin. That’s not a business model. That’s a balance sheet engineering party.
Q3 FY26 saw revenue explode to ₹16,315 crore (up 201.85% YoY), driven primarily by Blinkit’s hypergrowth in quick commerce. The adjusted EBITDA framework suggests the company is finally printing cash at scale. Then, on February 1st, 2026, founder Deepinder Goyal resigned as CEO and became Vice Chairman, with Albinder Dhindsa (formerly CEO of Blinkit) taking the helm. For context, Deepinder had built this empire from a two-person startup to a ₹2.24 lakh crore market cap company. So he’s stepping down right when the lights are turning green. Brilliant timing or a red flag? Depends on your mood that day.
Concall Clarity (Jan 2026): Management repeatedly emphasized Blinkit reached “breakeven” on adjusted terms and is now in “margin expansion” mode. The tone was optimistic but cautious about near-term competitive volatility. Translation: we’re printing cash now, but it’s hard to predict the exact trajectory because the market is unhinged.
03 — Business Model: What The Hell Do They Actually Do?
It’s Not One Business. It’s A Portfolio Company LARPing As A Startup.
Let me break down Eternal’s insane portfolio:
🍔 Food Delivery (44% Revenue in FY25)
The legacy business. Customers order food from restaurants via app. Restaurants pay 20-30% commission. Delivery partners (gig workers) carry the food. Eternal takes a cut. In FY25, this segment grew 21% YoY, driven by Net Order Value growth of 20%. Present in 800+ cities. ~297,000 active delivery partners. Margins are thin (sub-5% on delivery fees alone), but the customer stickiness is real.
⚡ Quick Commerce / Blinkit (23% Revenue in FY25)
The hero. Acquired August 2022. Delivers groceries, essentials, beauty products in 10-15 minutes from dark stores. In Q3, Blinkit hit breakeven on adjusted EBITDA terms. NOV per day per store grew despite assortment expansion (which dilutes throughput). 1,301 stores. 100+ cities. The management concall confirmed: “competition is irrational right now,” forcing tactical price cuts. But Blinkit is winning the unit economics battle.
📦 Hyperpure (29% Revenue in FY25)
B2B supply platform for restaurants and institutional buyers. Sourced directly from FPOs and traders. 76,500 unique outlets. Revenue grew 95% YoY in FY25. Slower growth than Blinkit, but highly profitable on margin basis. This is the quiet money-maker nobody talks about.
🎬 Going Out & Others (3% Revenue in FY25)
Includes dining reservations, movies, live events, sports ticketing (acquired Paytm’s entertainment business in FY25). District app launched. The Q3 concall hinted at large losses due to “rolling out District Pass membership”—basically, they’re investing aggressively and losing money. Management expects breakeven in 4–6 quarters. Good luck with that timeline.
The Unit Economics Problem: Food delivery has unit margins of ~2–5% (after paying delivery partners). Quick commerce is now breakeven (adjusted). Hyperpure is good. Going-out is burning cash. The portfolio is diversifying, but it’s creating a situation where investors have to love all the bets equally. Miss on one, and the whole thesis gets wobbly.
💬 If Blinkit is now profitable and Hyperpure is printing cash, why does the core business still feel like it’s struggling? Drop your thoughts!
04 — Financials Overview
Q3 FY26: The Numbers Are Wild, But So Is The Fine Print
Result type: Quarterly Results (Dec 31, 2025) | Q3 EPS: ₹0.11 | TTM EPS: ₹0.25 | Adjusted EBITDA Q3: ₹364 Cr
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 16,315 | 5,405 | 13,590 | +201.85% | +20.02% |
| Operating Profit | 368 | 162 | 239 | +127.16% | +53.97% |
| OPM % | 2.3% | 3.0% | 1.8% | -70 bps | +50 bps |
| PAT (Reported) | 102 | 59 | 65 | +72.88% | +56.92% |
| Adjusted EBITDA | 364 | ~150 | ~315 | +~143% | +~15% |
| EPS (₹) | 0.11 | 0.06 | 0.07 | +72.88% | +56.92% |
The Adjusted EBITDA Sleight of Hand: Reported PAT of ₹102 crore looks decent until you see the breakdown. Other income: ₹348 crore (Q3). Interest: ₹107 crore (debt service climbing). Depreciation: ₹439 crore (heavy capex amortization). The adjusted EBITDA figure of ₹364 crore is management’s way of saying “ignore one-time gains, look at cash generation.” Fair point. But TTM EPS is still ₹0.25, making the P/E 972x. That’s not a valuation—that’s a punch line.
💥 202% Revenue Growth
Mostly Blinkit. The quick commerce acquisition in Aug 2022 is now the growth engine. Food delivery is stabilizing, but Blinkit is doing the heavy lifting.
📈 Adjusted EBITDA +143% YoY
The framework that matters. If you strip out other income and one-time items, the business is generating cash. Blinkit’s breakeven is the inflection point.
⚠️ Other Income ₹348 Cr
That’s 68% of reported PAT. FX gains, investment mark-to-market, and portfolio company dividends are doing the heavy lifting. Strip it out and PAT falls to ₹34 crore.
05 — Valuation: The Nightmare Spreadsheet
What Price Makes Sense For A Company Growing Like Crazy But Earning Like A Dormant?
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