Eternal (Zomato) July 2025 Update: Profit Drops, Blinkit Expands, and New Challenges Ahead

Eternal (Zomato) July 2025 Update: Financials, Strategy, and What’s Next

Introduction

Eternal Limited, earlier known as Zomato, is now more than just a food delivery app. After its rebranding in February 2025, the company now operates in multiple areas—food delivery (Zomato), quick commerce (Blinkit), live event ticketing (District), and kitchen supply for restaurants (Hyperpure).

This update gives you a complete look at how Eternal is doing as of July 22, 2025. We’ll break down its recent financial results, business changes, and what challenges and opportunities lie ahead.

How Eternal (Zomato) Is Performing Financially

Q1 FY26 Results (April–June 2025)

Eternal shared its Q1 FY26 (April–June 2025) earnings on July 21, 2025.

Metric	Q1 FY25	Q1 FY26	Change
Net Profit	₹253 crore	₹25 crore	↓ 90%
Market Cap (as of Jul 21, 2025)	–	₹2.57 lakh crore	–
Share Price (July 21, 2025)	–	₹276.50	↑ 7.51% on the day

• Net profit dropped by 90%, mostly due to major spending on Blinkit.
• Share price still rose by 7.5%, showing investor confidence.
• Eternal is India’s most valuable company in the services sector.

Revenue Snapshot

While Eternal hasn’t shared Q1 FY26 revenue yet, here’s how it looked in FY25:

• FY25 Revenue: ₹20,243 crore
• Q4 FY25 Revenue: ₹5,833 crore (63.76% YoY growth), thanks mainly to Blinkit’s strong performance

Who Owns Eternal?

As of June 30, 2025:

Investor Type	Holding % (June 2025)	Change vs. Mar 2025
Foreign Investors (FIIs)	44.36%	↓ from 47.31%
Domestic Institutions (DIIs)	23.44%	↑ from 20.47%
Mutual Funds	19.37%	↑ steadily

Analysts give a median target price of ₹284.3, with estimates ranging between ₹150 and ₹375.

What’s Behind the Profit Drop?

Eternal’s profits took a hit because it’s heavily investing in Blinkit. The company is putting a lot of money into opening more dark stores and stocking inventory, which eats into short-term profits.

• Cash flow from operations (FY25): ₹308 crore
• Total net profit (FY25): ₹527 crore
• Ratio of operating cash to profit: Only 0.58x
• Investment spend (FY25): ₹7,993 crore (2203% increase YoY)

Earnings Per Share (EPS) in Q4 FY25 was just ₹0.55.

Major Strategic Changes at Eternal

Rebranding: Zomato Becomes Eternal

In February 2025, Zomato changed its name to Eternal to reflect its wider business scope. The four main units now are:

1. Zomato – Food delivery
2. Blinkit – Quick commerce (grocery and essentials in minutes)
3. District – Event ticketing and experiences
4. Hyperpure – Kitchen supplies for restaurants

The stock symbol also changed on BSE (543320) and NSE.

Blinkit’s Big Shift

New Inventory Model

From September 1, 2025, Blinkit will stop acting as a marketplace. Instead, it will buy inventory directly from brands and sellers, giving it more control over stock and pricing.

Dark Store Growth

Quarter	Total Dark Stores	Stores Added in Quarter
Q4 FY25	1,301	294

This helped Blinkit increase its Gross Order Value (GOV) to ₹28,274 crore in FY25, a jump of 122% YoY.

Profit Target

Blinkit wants to break even at the EBITDA level by Q3 FY26. But high spending and tough competition may slow that down.

Issues

Blinkit’s Q4 FY25 losses widened to ₹178 crore. On top of that, a warehouse in Hyderabad was raided over health violations, which raised red flags about hygiene.

Zomato: Slowing Down but Still Key

Food delivery was once Zomato’s main business. Now, it only makes up 35% of Eternal’s total revenue.

What’s Changing:

• Growth slowed to 16% in Q4 FY25
• Delivery partner shortage hurt operations, especially during Blinkit’s rapid scaling
• Zomato Quick and Zomato Everyday shut down due to weak demand
• Zomato Gold users now pay surge fees during rain or peak times (from May 16, 2025), similar to Swiggy

District and Hyperpure Updates

District

Eternal’s events platform is growing fast. It now sells tickets for major events like:

• Neeraj Chopra Classic – July 5, 2025
• IPL 2025 playoffs

District is now a serious competitor to BookMyShow.

Hyperpure

Hyperpure keeps supplying ingredients and kitchen items to restaurants. No major updates were shared for July 2025, but it’s expected to grow steadily.

Visibility Assurance Plan

Eternal introduced a monthly plan (₹6,000–₹6,500 per restaurant) to ensure better rider availability. This helps restaurants serve customers on time.

Market Situation and Competition

Blinkit vs. Other Quick Commerce Apps

The quick commerce space is heating up. Blinkit is fighting to stay ahead of:

• Swiggy’s Instamart
• Zepto

Estimated size of the Indian quick commerce market: ₹35,000 crore

Regulatory Concerns

Blinkit, Instamart, and Zepto are facing heat from:

• Retailers claiming unfair pricing
• CCI (Competition Commission of India) may investigate

The government-backed ONDC (Open Network for Digital Commerce) is another threat. It lets restaurants sell directly to customers, cutting out apps like Zomato and Swiggy.

Challenges with Restaurants

• In Namakkal, restaurants stopped services on Zomato and Swiggy from July 1, 2025. Reason: High commissions and delayed payments.
• 70% of hotel industry stakeholders think private labels (Blinkit, Swiggy) hurt their business.
• 69% say they have little power to negotiate with these platforms.

The FHRAI (restaurant association) has asked the government to look into issues like:

• Data misuse
• Food safety
• Unfair competition

Investor Mood and Analyst Ratings

Analyst Views

• Motilal Oswal: Buy (Target ₹300)
• Emkay Global: Buy (Target ₹270)

Both firms believe Blinkit can drive future growth.

Shareholding Trends

Investor Type	Q1 FY23	Q1 FY26	Trend
Domestic Investors	6.4%	26.5%	Strong increase
Foreign Investors	57.8%	42%	Decreasing stake

Index Risk

Due to foreign ownership rules (cap at 49.5%), Eternal could be removed or downgraded in MSCI/FTSE indexes, which might lead to $650–$1,300 million outflow.

Eternal’s Leadership and Corporate News

Deepinder Goyal’s Role

• On July 21, 2025, Goyal responded to a viral complaint about bad customer service and over-reliance on AI. He promised better human support.
• He denied rumors that LAT Aviation, his aerospace startup, bought a private jet.
• He recently registered a ₹52.3 crore flat in DLF Camellias, Gurugram. This was bought in 2022, reflecting personal financial confidence.

Management Updates

• Aditya Mangla is now CEO of Zomato’s food delivery arm.
• Rinshul Chandra, the COO of food delivery, stepped down in April 2025.

Social Initiatives by Eternal

• Delivery Partner Safety: Eternal rolled out a crash detection and response program.
• Women in Logistics: Plans to train 10,000 women for delivery roles.
• Plastic-Free Orders: Eternal ran a “Packathon” to reduce plastic use.
• Feeding India: Still active, feeding over 200,000 people daily.

Ongoing Challenges

Issue	Details
Profit Pressures	Blinkit investments hurting margins
Warehouse Hygiene	Hyderabad Blinkit facility raided
Customer Service Complaints	Viral complaints about AI bots, delayed responses
Gig Worker Safety	Political concerns raised on safety and working hours

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What’s Next for Eternal?

Blinkit’s Expansion

• The new inventory model and more dark stores could boost revenue.
• But making profits is still a major hurdle.

Food Delivery

• Fixing delivery partner issues may help stabilize this part of the business.

District

• Could bring in new money through ticketing services.

Regulatory Watch

• Eternal must deal with rising pressure from restaurants and the government.

FAQ: Eternal (Zomato) in 2025

Why did Zomato change its name?

To show its growth beyond food delivery. Now it covers groceries, events, and B2B supplies.

Is Blinkit profitable?

Not yet. The company is aiming for EBITDA breakeven by Q3 FY26.

What is the biggest threat to Eternal?

Strong competition in quick commerce and rising regulatory pressure.

Eternal (earlier Zomato) is changing fast. It’s not just a food app anymore. With Blinkit growing quickly, District gaining ground, and Hyperpure supporting restaurants, Eternal is trying to cover all corners of the service industry.

Still, it has many challenges—making profits, facing regulations, and keeping customers happy.

The next few quarters will show if Eternal’s big bets will pay off.

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