BENGALURU: Eternal (formerly known as Zomato) on Thursday reported a 78% decline in its consolidated net profit for the quarter ended March 2025, at Rs 39 crore, compared to Rs 175 crore in the year-ago period.
The company’s revenue from operations stood at Rs 5,833 crore, marking a 64% year-on-year increase compared to Rs 3,562 crore in the same quarter last year.
The company’s adjusted EBITDA declined 15% year-on-year to Rs 165 crore, due to the impact of accelerated store expansion in quick commerce.
Blinkit added 294 net new stores and is on track to reach 2,000 stores by December 2025.
In his letter to shareholders, Deepinder Goyal, Founder & CEO of Eternal, said they are shutting down Zomato Quick and Everyday as they do not see a path to profitability. “The current restaurant density and kitchen infrastructure are not set up for delivering orders in 10 minutes, which leads to inconsistent customer experience.
As a result, we did not see any incrementality in demand while we ran Quick as an experiment for a few months,” he said. “With Everyday, we realized that the need for homely meals is a limited use case, largely for office locations in metros. We did not see enough ROI to justify keeping it running at a small scale,” he added.
On the slowdown in food delivery growth, Goyal cited three reasons: a sluggish demand environment (especially in discretionary spending), a temporary shortage of delivery partners due to high demand in quick commerce, and competition from quick delivery of packaged food, which led to a drop in demand for restaurant food delivery.
The company’s food delivery GOV (Gross Order Value) and NOV (Net Order Value) grew 16% and 14% year-on-year, respectively.
Eternal believes that competition is likely to intensify further in the near term.
“This is the largest consumption category in the country, and beyond just the early quick commerce players, we will continue to see competition from next-day delivery companies as they invest more in faster deliveries, especially in non-grocery categories. While this doesn’t change our long-term optimism for the business, we believe we will see sustained competitive intensity in the near term,” said Akshant Goyal, Chief Financial Officer, Eternal.