1. At a Glance
Zomato—oops, we mean Eternal Ltd—delivered 67% revenue growth and a 90% fall in profits. Yes, you read that right. In its “Eternal” quest for relevance and profitability, this ₹2.6 lakh Cr giant just told investors: “Don’t worry, we’re still burning your cash, just faster now.”
2. Introduction with Hook
If rebranding could fix financials, Baba Ramdev would’ve renamed Patanjali to “Apple India.” But here we are—Zomato’s reincarnation as Eternal Ltd still smells like leftover biryani.
- Q1 FY26: ₹7,167 Cr in revenue, but just ₹25 Cr in profit
- Market Cap? A spicy ₹2,61,565 Cr
- ROE? Let’s say you’d earn more interest by dropping a coin in a temple donation box
This article is a full-course roast of India’s most glamorous loss-making delivery company. Bon appétit.
3. Business Model (WTF Do They Even Do?)
Zomato, now Eternal, operates a three-flavour buffet:
- Food Delivery (44%) – The OG app, from samosas to sushi, delivered via guys on two-wheelers with broken taillights
- Quick Commerce (Blinkit) – Groceries in 10 minutes (but profits not in 10 years)
- Dining, Gold, Hyperpure, and Other Buzzwords – All sound good on PPTs
Verdict: Their business model is built on volume, vibes, and venture capital memory. They’re monetising scale. But at 874x PE? You might as well invest in unicorn NFTs.
4. Financials Overview
| Metric | FY25 | TTM | Q1 FY26 |
|---|---|---|---|
| Sales (₹ Cr) | 20,243 | 23,204 | 7,167 |
| Net Profit (₹ Cr) | 527 | 299 | 25 |
| Operating Profit | 637 | 575 | 115 |
| OPM % | 3% | 2% | 2% |
| ROCE | 3% | 3% | 3.18% |
| ROE | 0.5% | 2.08% | Slippery |
They’ve grown revenue like a rocket. Sadly, their profit looks like a rejected ISRO trajectory.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹271 |
| Book Value | ₹31.4 |
| P/B | 8.63x |
| PE (Trailing 12M) | 874.8x |
| Market Cap | ₹2.6 lakh Cr |
FV Range Analysis:
- Let’s assume optimistic 10% NPM on ₹23,204 Cr → ₹2,320 Cr PAT
- Apply 40x forward PE (generous) → ₹92,800 Cr market cap
- Divide by 96.5 Cr shares = FV Range: ₹850–₹1,000 Cr = ₹90–₹110/share
EduFair Value Range: ₹90–₹120
At ₹271? You’re paying for three lifetimes of future buffet dinners.
6. What’s Cooking – News, Triggers, Drama
- Rebranding from Zomato to Eternal: Cool name, no cash
- Blinkit spinout underway – Expect more losses dressed as “scalability”
- ESG Launch + Inventory Reset – Eco-friendly unprofitability?
- FIIs dumping – from 57.8% to 42.3% in 7 quarters
- New Subsidiary (Blinkit Foods) incorporated — because why not? Let’s just keep spinning new companies until one makes profit.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 907 |
| Reserves | 29,410 |
| Borrowings | 2,045 |
| Total Assets | 35,623 |
| Investments | 13,192 |
| Fixed Assets | 9,532 |
TL;DR:
- Stacked reserves (from past fundraises)
- Cash burn still happening
- Asset-heavy for a tech company. Looks more like a mall than an app.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | -844 | 797 | -127 | -174 |
| FY24 | 646 | -348 | -207 | 91 |
| FY25 | 308 | -7,993 | 8,042 | 357 |
Takeaway:
- Still funding growth via financing
- Operating cash flow positive after years — bravo
- FY25 CFI shows massive investment outflow — probably Blinkit expansion
9. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROCE | 3% |
| ROE | 2.08% |
| EPS (TTM) | ₹0.33 |
| Debtor Days | 35.1 |
| Cash Conv. Cycle | -54 |
They’ve improved from hemorrhaging money to gently leaking. But sexy? Only if you’re into burn rates.
10. P&L Breakdown – Show Me the Money
| Year | Sales | Expenses | EBIT | PAT |
|---|---|---|---|---|
| FY23 | 7,079 | 8,290 | -1,211 | -971 |
| FY24 | 12,114 | 12,071 | 43 | 351 |
| FY25 | 20,243 | 19,606 | 637 | 527 |
| TTM | 23,204 | 22,629 | 575 | 299 |
Profit margins are barely 1–2%. One “discount coupon fest” and this could fall into red again.
11. Peer Comparison
| Company | CMP ₹ | PE | ROCE % | PAT (TTM) | P/BV | Remarks |
|---|---|---|---|---|---|---|
| Eternal (Zomato) | 271 | 875x | 3.2 | 299 Cr | 8.63 | Expensive samosas |
| Swiggy | 395 | — | -29.2 | -3,105 Cr | 8.85 | Still burning cash |
| Nykaa (FSN) | 217 | 938x | 9.6 | 66 Cr | 47.6 | Overpriced lipsticks |
| Macfos | 695 | 36x | 41.8 | 17.9 Cr | 9.3 | Underdog |
Verdict: Entire e-commerce sector is in “IPO hangover mode”. Eternal is still dancing at the valuation party, long after the music stopped.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | Jun ’23 | Jun ’25 |
|---|---|---|
| FIIs | 54.4% | 42.3% |
| DIIs | 9.9% | 26.6% |
| Public | 33.6% | 25.2% |
Observations:
- FIIs fleeing faster than a customer who ordered pineapple pizza
- DIIs are catching falling knives
- Public shareholding stable, but retail might not survive another earnings miss
13. EduInvesting Verdict™
Zomato’s Eternal Ltd has all the makings of a modern Indian tech stock:
- Great topline growth
- PR blitz
- And profit margins thinner than app icons on your phone
Yes, it’s evolved from wild losses to timid profits. But even now, the PE ratio has three digits, and the business model has three lifeboats strapped to a burning ship.
This isn’t value investing. This is faith-based investing.
EduTake:
If valuation is your religion, Eternal is your test of devotion. The only question is — how long are you willing to fast before you feast?
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: Eternal Ltd, Zomato, Q1FY26, Tech IPO, Food Delivery, Blinkit, Consumer Tech Roast
