Eternal Ltd: 70% Sales Growth, 1,028× P/E – The Food App That Eats Money for Breakfast
1. At a Glance
Eternal Ltd (aka Zomato) is living proof that in India, if your app brings samosas faster than your neighbour’s maid, the market will value you at ₹3,07,267 crore — even if your net profit is a polite ₹299 crore. P/E? A meme-worthy 1,028× on trailing EPS. This is not valuation; this is a stock market food festival where logic isn’t invited. Sales have exploded 70% YoY in the June quarter, but profits plunged 90% QoQ because margins apparently went on a diet.
2. Introduction
Founded in 2010, Zomato started as your friendly restaurant discovery portal and now runs a multi-segment food-tech empire — food delivery, dining-out, B2B restaurant supplies (Hyperpure), quick commerce (Blinkit), and now event ticketing after swallowing Paytm Insider.
In FY22, food delivery was 81% of the pie; by H1 FY25, it’s down to 44% as Blinkit (quick commerce) and Hyperpure gobble market share like pav bhaji at midnight. Quick commerce is the new star, growing 136% YoY. Blinkit promises deliveries in 15 minutes, which is faster than most listed companies reply to SEBI notices.
Hyperpure, Zomato’s B2B grocery for restaurants, is also on steroids — up 97% YoY. Meanwhile, “Going Out” services (restaurant booking + events) grew 170% YoY, thanks to Paytm Insider’s integration and India’s unending appetite for concerts, cricket, and comedy shows.
On the downside, debt has crept from ₹70 crore in FY22 to ₹2,045 crore by FY25, and there’s a ₹402 crore GST demand letter from the taxman. But why worry when the stock is up 47% in six months?
3. Business Model (WTF Do They Even Do?)
Zomato’s empire runs on four revenue streams:
Food Delivery – App-based restaurant discovery, ordering, and last-mile delivery via 4 lakh+ riders. Revenue +35% YoY in H1 FY25.
Hyperpure Supplies – B2B supply chain for restaurants, sourcing directly from producers. Revenue +97% YoY.
Quick Commerce (Blinkit) – 15-minute delivery of groceries, electronics, and random impulse purchases you regret later. Revenue +136% YoY.
Going Out & Events – Table reservations, concert tickets, and festivals. Revenue +170% YoY post Paytm Insider acquisition.
Each is growing double digits, but profitability is still wafer-thin at 2.48% OPM TTM. This is a volume game — margins might fatten eventually, but for now they look like they’re on intermittent fasting.
