Zomato’s Bold Growth Play: How Eternal Limited is Revolutionising Food Delivery and Quick Commerce in India
Eternal Limited, the parent company of Zomato and Blinkit, is making big moves in India’s food delivery and quick commerce sectors. Here’s a simplified breakdown of their recent performance and strategy:
1. Q1 FY26 Financial Highlights
Metric
Value
Notes
Revenue Growth
70% YoY increase
₹7,167 crore total revenue
Net Profit
90% decline
Dropped to ₹25 crore, due to strategic investments
Zomato India Business
Profitable
Net profit grew 28%
Employee Stock Options
₹26 crore granted
Retention and incentive tool
2. Reasons for Profit Decline
Factor
Explanation
Quick Commerce Investments
Expansion in Blinkit and “going-out” services requires capital
Blinkit Business Model Shift
Changing from marketplace to inventory-led increases upfront costs
Marketing & Delivery Expenses
Higher spend to compete and grow market share
3. Strategic Initiatives Powered by AI and Marketing
Area
Description
AI-Driven Operations
Supply chain optimization, route planning, and inventory forecasting
Personalized Marketing
Customer segmentation and dynamic pricing to enhance engagement
SEO & Content Strategy
Focus on keywords like “10-minute delivery,” “quick commerce”
Talent & Leadership
New CEO appointment, ₹26 crore stock options to motivate teams
4. Market & Leadership Outlook
Aspect
Details
Stock Market Reaction
Shares rose over 7% after Q1 results
Competitive Landscape
Facing new entrants like Rapido with potentially lower commissions
Leadership
Aditya Mangla appointed new CEO for food delivery operations
Long-Term Vision
Focus on sustainable growth despite short-term profit dips
Summary
Eternal Limited is investing heavily in technology, marketing, and leadership to capture a larger share of India’s fast-growing food delivery and quick commerce markets. While these investments have led to a short-term profit decline, the company’s long-term strategy focuses on building a robust, technology-driven business aimed at sustainable growth and market leadership.
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