ETERNAL LIMITED Annual Report FY2026
ETERNAL LIMITED Annual Report FY2026
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Eternal Limited (formerly Zomato Limited) has established itself as India's preeminent consumer internet ecosystem across food delivery, quick commerce (Blinkit), and B2B supplies (Hyperpure). Consolidated revenue expanded at an exceptional 5-year CAGR of 81.3%, scaling from ₹1,994 Cr in FY21 to ₹54,364 Cr in FY26, and further to ₹67,408 Cr on a TTM basis. Following multi-year operating losses exceeding ₹2,300 Cr annually during peak expansion, the business transitioned to operating profitability in FY24 (operating profit of ₹43 Cr) and achieved a net profit of ₹366 Cr in FY26. However, heavy…
Key Changes in FY2026
Over the past decade, Eternal evolved from an online restaurant discovery and review directory into a dominant dual-engine hyper-local commerce conglomerate encompassing food delivery, quick commerce, B2B supplies, and going-out ticketing. The corporate journey commenced with dining-out discovery, shifted to food delivery aggregation around FY16-FY18, and gained critical mass through the national consolidation of restaurant delivery logistics. The acquisition of Blinkit in FY23 represented a pivotal business transformation, transitioning the firm from scheduled dining fulfillment into instant grocery and general merchandise retail within 10 to 15 minutes. Revenue subsequently surged from ₹4,192 Cr in FY22 to ₹54,364 Cr in FY26, reflecting a 5-year CAGR exceeding 80%, underpinned by…
Management Commentary
Leadership under founder Deepinder Goyal has demonstrated agile operational execution, pivoting from an advertising-dependent discovery portal to a hyper-local logistics and fulfillment powerhouse. Management successfully demonstrated food delivery unit-level profitability, achieving adjusted EBITDA breakeven ahead of broader market expectations. Corporate disclosures and shareholder communications via periodic letters provide transparent operational KPIs, including dark store metrics, monthly transacting customers, and GOV trends. However, organizational rebranding to 'Eternal' and aggressive resource reallocation into adjacent verticals such as live events and B2B supplies introduce operational complexity. Incentive alignment is supported by substantial equity-linked compensation…
Financial Highlights
Topline trajectory has been hyper-scaling, surging 168% YoY in FY26 to ₹54,364 Cr, underpinned by the hyper-growth of Blinkit alongside sustained 20%+ order value expansion in food delivery. Operating margins turned positive in FY24 at 0.3% and expanded to 2.2% in FY26, generating an operating profit of ₹1,208 Cr, before reaching 2.9% in Q1 FY27. Net profit performance has been highly volatile and heavily aided by non-operating treasury income, which stood at ₹1,396 Cr in FY26 (and ₹1,417 Cr TTM), exceeding reported pre-tax profit of ₹615 Cr. Consequently, core operational return metrics remain nascent, with FY26 return on equity at 1.2% and return on capital employed at 2.8%. Balance sheet capitalization is anchored by net worth of ₹30,980 Cr and total borrowings of ₹4,592 Cr (primarily…
Major Opportunities
- Secular revenue expansion with 5-year CAGR of 81.3% and FY26 top line reaching INR 54,364 Cr.
- Duopoly market structure in Indian food delivery enabling sustained delivery fees, platform fees, and advertising monetization.
- Market leadership in quick commerce via Blinkit, pioneering rapid grocery delivery and capturing market share from traditional retail.
- Substantial liquidity cushion with cash and liquid investments exceeding INR 16,356 Cr as of FY26.
- Consistent positive operating cash flow generation over the last three fiscal years (INR 632 Cr in FY26).
Major Risks
- Extremely thin consolidated net profit margin of 0.7% (FY26 net profit of INR 366 Cr on INR 54,364 Cr revenue).
- Operating profitability remains heavily reliant on other income (INR 1,396 Cr in FY26), without which PBT would be negative.
- Massive negative free cash flow (-INR 4,193 Cr in FY26) driven by aggressive network capex and dark store rollout.
- Rapidly rising debt profile, escalating from INR 70 Cr in FY22 to INR 4,592 Cr in FY26.
- Very low return on equity (1.2% in FY26) and return on capital employed (2.8% in FY26) indicating poor capital efficiency currently.
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About This Annual Report
The ETERNAL LIMITED FY2026 Annual Report is the company's flagship annual disclosure, filed with NSE / BSE. It covers the full-year business review, management discussion & analysis (MD&A), audited financial statements, director's report, corporate governance report, auditor's report, risk factors, capital allocation, subsidiaries, related-party transactions and ESG initiatives. This page consolidates the official PDF and an AI-generated summary so investors can quickly grasp what changed vs. prior years — sales growth, margin trend, cash flow quality, capex, dividends and management outlook — without having to read the entire filing.
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