Zomato Ltd, which has recently been renamed to Eternal, reported a sharp 77% drop in net profit to Rs 39 crore in Q4 FY25 compared to Rs 170 crore in the same quarter last year. While the company remained profitable, the dip has raised eyebrows among analysts and investors.
The key reason behind this decline? Rising losses in its quick commerce business, operated by Blinkit, and the decision to shut down two of its own rapid delivery pilots: Zomato Everyday and 10-minute delivery (Quick).
Revenue Still on the Rise
Despite the profit slump, Eternal’s consolidated revenue from operations rose 15% year-on-year to Rs 3,562 crore, up from Rs 3,098 crore in Q4 FY24. The growth was led by increased orders on its food delivery platform, more premium subscribers, and steady expansion in Blinkit’s hyperlocal presence.
However, the company also noted higher operational costs, particularly in logistics, warehousing, and dark store setups, which weighed on its margins.
Quick Commerce: A Double-Edged Sword
While Blinkit has shown remarkable order growth (up 31% YoY), the unit economics are still challenging. CEO Deepinder Goyal admitted in the earnings call that losses in Blinkit widened due to aggressive expansion, but expressed confidence in reaching profitability soon.
To streamline operations and cut costs, Eternal discontinued Zomato Quick (10-minute food delivery) and Zomato Everyday, a budget-meal offering. These services had failed to gain the desired traction, especially with Blinkit already delivering essentials and snacks within minutes.
“We’re choosing to focus on what’s working, and Blinkit is clearly leading that charge,” said Goyal.
Blinkit Expansion: The Real Bet
Blinkit’s growth is at the center of Eternal’s future roadmap. The service is now live in 400+ locations across India, delivering everything from groceries to ready-to-eat meals.
According to company data:
Blinkit processed 3.4 crore orders in Q4 FY25.
The average order value (AOV) improved slightly, helping reduce cash burn per order.
The company has 70% market share in quick commerce in metros.
However, these gains have come at the cost of significant investment in infrastructure, warehousing, and delivery incentives.
Financial Snapshot – Q4 FY25
| Metric | Q4 FY25 | Q4 FY24 |
|---|
| Net Profit | Rs 39 crore | Rs 170 crore |
| Revenue from Operations | Rs 3,562 crore | Rs 3,098 crore |
| Food Delivery GMV | Rs 7,672 crore | Rs 6,956 crore |
| Blinkit Order Growth | Up 31% YoY | — |
| Subscription Revenue (Gold) | Rs 168 crore | Rs 140 crore |
Summary
Eternal’s Q4 profit dropped 77% YoY to ?39 crore due to quick commerce losses.
Revenue rose 15% to ?3,562 crore, led by food delivery and subscriptions.
Blinkit order volumes surged 31%, but expansion costs dented profitability.
Zomato Everyday and 10-minute food delivery services shut down to consolidate resources.
Company remains optimistic on Blinkit's long-term growth and aims to balance scale with profitability.
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