Eternal Q4 results: Net profit drops 78%, EBITDA falls 16%

Eternal, the parent company of food delivery firm Zomato, on Thursday, May 1, reported net profit of ₹39 crore in January-March quarter, marking a decline of 78% from ₹175 crore in the same period last year.

Its revenue from operations rose 64% to ₹5,833 crore in fourth quarter of financial year 2024-25 (Q4FY25) as against ₹3,562 crore in the year-ago period.

Eternal's earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit declined 16% to ₹ 72 crore in Q4 from ₹86 crore in the corresponding period last year.

Its EBITDA margin contracted by 120 basis points to 1.23% from 2.41%.

Eternal's revenue from food ordering and delivery business rose 18% to ₹2,054 core and revenue from Hyperpure supplies business advanced 93% to ₹1,840 crore.

Quick commerce (Blinkit) revenue rose 122% to ₹1,709 crore and revenue from going out business advanced 146% to ₹229 crore.

Eternal's net order value (NOV) of our B2C businesses grew 53% YoY (5% QoQ) to ₹17,440 crore in Q4FY25.

"On a like-for-like basis (excluding the impact of the acquisition of Paytm’s entertainment ticketing business), NOV growth was 48% YoY (5% QoQ). Our B2B business Hyperpure’s Revenue grew 93% YoY (10% QoQ). Consolidated Adjusted Revenue grew 60% YoY (8% QoQ) to INR 6,188 crore. On the profitability front, consolidated Adjusted EBITDA declined 15% YoY to INR 165 crore in Q4FY25, largely on account of the accelerated investments in expanding our quick commerce store network, which was partly offset by the improvement in food delivery Adjusted EBITDA margin (as a % of NOV) to 5.2% from 3.8% a year ago," Eternal said in a letter to shareholders.

Eternal recognised slowdown in food delivery business and attributed it to sluggish demand environment, shortage (temporary) of delivery partners due to high demand of delivery partners in quick commerce given the rapid expansion of the industry in the last few months and competition from quick delivery of packaged food from quick commerce leading to drop in demand for food delivery from restaurants, the company said.

Eternal shares ended 0.58% higher at ₹232.50 a day ahead of its earnings announcement.