I. The Lead: “The Silence of Execution”
From the desk of a veteran analyst who has spent three decades studying Indian geoeconomics, supply chains, and consumer behavior, the Q3 FY26 results of Eternal deserve to be read differently. This is not just another quarterly earnings update. It is a clear signal of how a digital platform, rooted entirely in domestic consumption, can quietly build scale, resilience, and profitability at the same time.
In March 2025, the company’s decision to rebrand from Zomato to Eternal was widely discussed, debated, and even mocked in parts of the media. Many viewed it as cosmetic. But Q3 FY26 numbers show that the rebranding was not about optics. It was about intent. Eternal was signaling that it was no longer just a food delivery app. It was positioning itself as a long-term consumer infrastructure company.
The real story of Q3 FY26 is not leadership headlines or market speculation. It is execution. In a global environment filled with tariff wars, supply chain uncertainty, and geopolitical tension, Eternal has quietly built a pure domestic consumption fortress. Its revenues are earned in India, its costs are largely local, and its growth is driven by everyday demand from Indian households. This insulation from global trade shocks is a strategic advantage that markets are only beginning to understand.
Most importantly, Eternal has achieved something that many high-growth tech companies struggle with for years. It has decoupled growth from cash burn. The company is no longer dependent on external capital to fund expansion. Internal accruals are now strong enough to support both growth and experimentation. That is a fundamental shift in the business model.
Eternal (Formerly Zomato) – Official Investor Source
II. Fundamental Breakdown: The Hard Data (Q3 FY26)
The quarter ending December 31, 2025, marks what can be called Eternal’s “Execution Overdrive” phase. The numbers clearly show scale, speed, and improving financial discipline.
Consolidated revenue for Q3 FY26 came in at ₹16,315 crore, compared to ₹5,405 crore in Q3 FY25. This translates to an extraordinary 202% year-on-year growth. Such growth is not coming from discounts or unsustainable promotions alone. It reflects deeper penetration, higher order frequency, and expansion into new use cases like quick commerce and B2B supply.
Net profit stood at ₹102 crore, up from ₹59 crore last year, representing a 73% YoY increase. This is critical because profit growth has come even as the company continues to invest heavily in Blinkit and logistics infrastructure. In simple terms, Eternal is growing profits while still building for the future.
Total expenses increased sharply to ₹16,493 crore, compared to ₹5,533 crore a year ago, a rise of 198%. At first glance, this looks aggressive. But context matters. A large part of this cost increase is linked to the scaling of Blinkit’s dark stores, delivery fleet, and warehousing. These are upfront investments that build long-term capacity.
Despite this spending, the company ended the quarter with a cash balance of ₹17,820 crore. This is only marginally lower than Q2 FY26 levels and gives Eternal a strong war chest. This cash provides flexibility for acquisitions, technology investments, and competitive defense. Very few consumer tech companies in India enjoy this level of financial comfort.
The hard data sends a clear message: Eternal is no longer operating in survival mode. It is operating from a position of strength.
III. Segment-Wise Analysis: The Three Engines of Growth
Eternal’s business today runs on three distinct engines. Each plays a different role in the overall strategy, and together they create balance between stability and growth.
Food Delivery: The “Cash Cow”
Food delivery remains Eternal’s most stable and predictable business. While the market is now mature, order volumes are steady, customer behavior is well understood, and unit economics are far more disciplined than in earlier years.
Margins in food delivery have stabilized because delivery density has improved and promotional intensity has reduced. Customers are ordering more frequently, and average order values have increased gradually with inflation and premiumization. This segment generates consistent cash flows, which help fund growth in newer verticals.
Food delivery may no longer deliver explosive growth, but it provides something equally important: reliability.
Blinkit (Quick Commerce): The “Growth Accelerator”
Blinkit is now the primary driver behind Eternal’s triple-digit revenue growth. The rapid expansion of dark stores, faster delivery timelines, and higher customer adoption have pushed Blinkit into the center of Eternal’s growth story.
Crucially, Blinkit is moving steadily toward Adjusted EBITDA profitability. This is a major shift. Early quick-commerce models were criticized for high burn and weak unit economics. Blinkit’s improving contribution margins suggest that scale is finally working in its favor.
As urban consumers become more time-constrained, demand for instant grocery and essentials is rising. Blinkit captures this behavior change directly. Over time, as delivery routes become denser and private-label products grow, profitability should improve further.
Quick Commerce & Logistics Validation BCG – Quick Commerce & Urban Consumption
Hyperpure (B2B): The “Silent Ecosystem Play”
Hyperpure does not attract headlines, but strategically, it may be one of Eternal’s most important assets. It supplies fresh produce, meats, and essentials to restaurants, hotels, and cafés across major cities.
This B2B segment strengthens Eternal’s supply chain control. It reduces dependence on third-party vendors and improves quality consistency across food delivery partners. Hyperpure is quietly building the backbone for India’s massive HoReCa ecosystem, which is becoming more organized and technology-driven.
In the long run, Hyperpure enhances Eternal’s ecosystem power rather than short-term profits.
HoReCa & B2B Supply Chain Context FSSAI – Food Supply & Compliance
IV. The Geoeconomic Angle: Labor Codes & Strategic Autonomy
One of the most under-discussed aspects of Eternal’s Q3 FY26 performance is how it has handled India’s new labor codes. Many companies, especially public sector units and legacy firms, reported one-time hits to profits due to social security contributions.
Eternal, however, had planned for this. Management had already factored in 1–2% of turnover toward social security and delivery partner benefits. As a result, there was no sudden shock to margins. This reflects foresight and financial discipline.
Leadership transition is another important development. The move from Deepinder Goyal to Albinder Dhindsa as CEO, effective February 1, 2026, signals a strategic shift. Goyal’s strengths lie in experimentation and long-term vision. Dhindsa’s background is operational and execution-focused, particularly in Blinkit.
This transition suggests that quick commerce is no longer an experiment. It is becoming Eternal’s permanent identity.
From a geopolitical perspective, Eternal is uniquely insulated. While global trade tensions and tariff threats worry exporters, Eternal’s revenues come from Indian households. It captures spending from a growing middle class that is increasingly digital, urban, and time-poor. This makes Eternal a direct beneficiary of India’s internal economic momentum.
V. Fundamental Analyst’s Red Flags & Risks
No serious analysis is complete without addressing risks.
The first concern is valuation. Eternal trades at historically high multiples, often around 8.5x book value. Such valuations leave little room for execution errors. If Blinkit’s path to profitability slows or competition intensifies, the stock could see sharp corrections.
Second is leadership risk. Deepinder Goyal’s move toward high-risk experimentation creates uncertainty. Albinder Dhindsa must quickly establish control over the broader ecosystem and communicate a clear long-term strategy to investors.
Third is operating leverage. With expenses growing nearly 200%, cost control becomes critical. Delivery partner payouts, fuel costs, and social security contributions must be managed carefully. Even small inefficiencies can impact margins at scale.
These risks do not invalidate the story, but they demand close monitoring.
VI. Conclusion: The “Fortress India” Play
Eternal is no longer a food tech startup chasing growth at any cost. It has evolved into a logistics-led consumer infrastructure company. The Q3 FY26 results confirm this transformation.
A 73% rise in profit, achieved in a high-expense, investment-heavy phase, validates the business model. Eternal is proving that scale, discipline, and domestic focus can coexist.
For long-term fundamental investors, Eternal represents a “Fortress India” play. It is deeply embedded in daily consumption, insulated from global shocks, and supported by strong internal cash generation.
The silence around execution may continue. But the numbers speak clearly. Eternal is building something durable—and the market is only beginning to listen.
Indian Consumption & Digital Economy Context NASSCOM – Digital & Platform Economy
❓ Frequently Asked Questions (FAQ)
1. What are Eternal’s Q3 FY26 financial results?
Eternal reported consolidated revenue of ₹16,315 crore in Q3 FY26, registering 202% year-on-year growth. The company also posted a net profit of ₹102 crore, showing a strong improvement in operating leverage.
2. Is Eternal profitable in Q3 FY26?
Yes. Eternal recorded a 73% year-on-year increase in net profit, even while continuing to invest heavily in quick commerce and logistics infrastructure.
3. Why did Zomato rebrand itself as Eternal?
The rebranding reflects a strategic shift from being a food delivery platform to becoming a consumer infrastructure company, covering food delivery, quick commerce (Blinkit), and B2B supply chains.
4. What role does Blinkit play in Eternal’s growth?
Blinkit is now the largest growth driver for Eternal. It has significantly contributed to revenue expansion and is steadily moving toward Adjusted EBITDA profitability.
5. Is Blinkit profitable yet?
Blinkit is not fully profitable at the net level, but it has made strong progress toward Adjusted EBITDA breakeven, supported by higher order density and better unit economics.
6. What is Hyperpure and why is it important?
Hyperpure is Eternal’s B2B supply business serving restaurants, hotels, and cafés. It strengthens Eternal’s supply chain control and improves quality consistency across its ecosystem.
7. How did Eternal manage India’s new labour codes?
Eternal had already planned for social security contributions under the new labour codes, allocating 1–2% of turnover, which helped avoid sudden profit shocks.
8. How strong is Eternal’s cash position?
Eternal ended Q3 FY26 with a cash balance of ₹17,820 crore, providing a strong buffer for expansion, acquisitions, and competitive pressures.
9. Is Eternal affected by global trade tensions and tariffs?
Eternal is largely insulated because its revenue comes from domestic Indian consumption, not exports or global trade-dependent businesses.
10. What are the biggest risks for Eternal investors?
Key risks include high valuation levels, execution risk in Blinkit’s profitability timeline, leadership transition, and rising delivery and compliance costs.
11. Is Eternal still dependent on food delivery?
No. While food delivery remains a stable cash-generating segment, growth is now increasingly driven by quick commerce and B2B supply operations.
12. How does Eternal compare with other Indian consumer tech companies?
Unlike many consumer tech firms, Eternal has shown the ability to scale revenue while improving profitability, supported by strong internal cash generation.
13. Is Eternal a long-term investment opportunity in 2026?
For long-term investors, Eternal offers exposure to India’s growing digital consumption economy. However, entry timing matters due to premium valuations.
14. What makes Eternal a “consumer infrastructure” company?
Eternal controls logistics, data, supply chains, and last-mile delivery across multiple consumption categories, making it more than just an app-based platform.
15. Will Eternal continue investing aggressively despite profitability?
Yes. Eternal is expected to continue investing in Blinkit expansion, technology, and logistics while balancing profitability and cash flow discipline.
16. Does Eternal plan acquisitions in the future?
With a strong cash balance, Eternal has the flexibility to pursue strategic acquisitions, especially in logistics, supply chain, or adjacent consumption platforms.
17. How sustainable is Eternal’s revenue growth?
Revenue growth is supported by rising urban consumption, increasing convenience demand, and deeper penetration of quick commerce, making it structurally sustainable.
18. Why do analysts call Eternal a “Fortress India” play?
Because Eternal is deeply tied to domestic consumption, insulated from global shocks, and backed by strong cash reserves and scalable infrastructure.
🔍 People Also Ask (PAA)
Why did Zomato change its name to Eternal?
Zomato rebranded to Eternal to reflect its evolution from a food delivery app into a broader consumer infrastructure platform covering quick commerce, logistics, and B2B supply chains.
Is Eternal different from Zomato as a business?
Yes. While food delivery remains important, Eternal now derives significant growth from Blinkit (quick commerce) and Hyperpure (B2B supply), making it more diversified than Zomato’s earlier model.
How profitable is Eternal in FY26?
Eternal reported a 73% year-on-year increase in net profit in Q3 FY26, showing improving operating leverage even during a heavy investment phase.
Is Blinkit profitable yet?
Blinkit is not fully profitable at the net level, but it is moving steadily toward Adjusted EBITDA profitability, supported by higher order volumes and better delivery efficiency.
What is Eternal’s main source of revenue?
Eternal’s revenue comes from a mix of food delivery commissions, quick commerce sales via Blinkit, and B2B supplies through Hyperpure.
Is Eternal dependent only on food delivery?
No. Food delivery is now the stable base, while quick commerce and B2B supply chains are driving incremental growth.
How does quick commerce impact Eternal’s margins?
Quick commerce has higher initial costs but improves margins over time as order density rises and logistics become more efficient.
Is Eternal insulated from global economic slowdowns?
Largely yes. Eternal’s business is driven by domestic Indian consumption, which makes it less sensitive to global trade disruptions and tariffs.
What makes Eternal a consumer infrastructure company?
Eternal controls key layers of the consumption stack—technology, logistics, supply chains, and last-mile delivery—making it more than just an app-based service.
Is Eternal stock overvalued in 2026?
Eternal trades at premium valuations due to strong growth and profitability trends. While this reflects quality, it also increases downside risk if execution slows.
What are the biggest risks for Eternal going forward?
Key risks include execution delays in Blinkit profitability, rising delivery costs, leadership transition challenges, and valuation sensitivity.
Will Eternal continue aggressive expansion?
Yes. Backed by strong cash reserves, Eternal is expected to continue expanding Blinkit, strengthening logistics, and investing in technology.
What is the future of quick commerce in India?
Quick commerce is expected to grow rapidly in urban India as consumers prioritize convenience, speed, and digital ordering for daily needs.
How does Eternal compare with other Indian consumer tech companies?
Eternal stands out due to its ability to scale revenue while improving profitability, supported by strong internal cash generation.
Should long-term investors track Eternal closely?
Yes. For investors focused on India’s consumption economy, Eternal remains a key company to watch, though valuation discipline is important.
