Eternal is torn between Zomato and Blinkit. As soon as one stabilises the other one hits a snag. And as the Q2 results show, Eternal is banking on food delivery for profits and quick commerce for growth.

But this balancing act is proving harder to achieve than many might have expected last year.

The company’s operating revenue surged to INR 13,590 Cr, a massive 183% jump from the same quarter last year. But profits took a sharp nosedive of 63% year-on-year to INR 65 Cr. Even though net profit more than doubled on a QoQ basis from INR 25 Cr, one would have expected a higher uptick given that Q2 is the start of the festive season, historically a big quarter for Zomato.

In Q2, Blinkit was the clear standout for Eternal, driving the revenue surge single-handedly with a whopping 756% surge (INR 9,891 Cr in Q2 FY26 vs INR 1,156 Cr in Q2 FY25) thanks to the inventory-model pivot.

But it’s Zomato that seems to be the problem child for the Deepinder Goyal-led consumer services giant.

After five straight quarters of slowing expansion, Zomato’s net order value (NOV) finally ticked up during the quarter, albeit slowly. Food delivery NOV grew 14% YoY, improving slightly from 13% YoY NOV growth in the previous quarter.

Deepinder Goyal has acknowledged that growth recovery has been slower than expected, elaborating that Zomato is dealing with multiple challenges, including muted discretionary spending in India and increasing pressure from the quick commerce segment boom.

The market was not too pleased with the results. Eternal’s shares slipped over 4% to INR 333.75 on the BSE during intraday trading. It later recovered, but ended the week in the red at INR 342.7.

Zomato Squeezed By Consumption Chill

Eternal has already started taking measures to reposition itself as a broader lifestyle platform since last year, as a necessary response to a slowing core food delivery business. One could say that Zomato’s slow growth was foreshadowed by those moves, which included the launch of District and Bistro by Blinkit.

Building on Blinkit’s rapid success, the Zomato parent aimed to become an essential part of consumers’ daily lives.

With District, launched in November 2024, Zomato increased focus on enhancing the going-out experience—connecting users to restaurants, events, and nightlife.

Meanwhile, Bistro, launched in December, caters to instant food cravings, complementing its delivery network. Together, these two products positioned Eternal as a comprehensive ecosystem that blends dining,........

© Inc42