Winning Bizness Desk
Mumbai.Zomato, now renamed as Eternal Limited, reported a significant increase in revenue during the second quarter of the financial year 2025-26, but its net profit saw a sharp decline. The online food delivery giant earned a consolidated profit of Rs 65 crore in Q2FY26, marking a 63 percent drop compared to Rs 176 crore in the same quarter last year. Despite this, the company generated Rs 13,590 crore in revenue from July to September, nearly three times the Rs 4,799 crore recorded in Q2FY25.
Zomato’s shares reacted to the quarterly results, closing at Rs 340.50 on October 16, down by 3.91 percent. During intraday trading, the stock touched Rs 368.20. Over the past six months, the share has given a return of 53.32 percent, while it rose 24.16 percent over the last year. Since January 1 this year, the stock has delivered a 23.15 percent return. Zomato’s parent company, Eternal Limited, has a market capitalization of Rs 3.16 lakh crore, making it the 19th largest company in India.
Consolidated profit reflects overall group performance
Companies report results in two formats – standalone and consolidated. Standalone results show financial performance of a single unit, while consolidated or combined reports include all subsidiaries and related entities. For Zomato, the consolidated results include 21 subsidiaries and one trust, including its grocery delivery platform Blinkit. Standalone results are reported separately for individual units like Blinkit. This gives investors a clear picture of the company’s overall financial health.
Early beginnings as a food directory
Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddha as FoodieBay, a restaurant directory website. Within just nine months, FoodieBay became the largest restaurant directory in Delhi NCR. In 2010, the company was renamed Zomato. Following its success in Delhi NCR, the company expanded to cities like Pune, Ahmedabad, Bangalore, Chennai, and Hyderabad. By 2012, Zomato had begun international operations in Sri Lanka, UAE, Qatar, South Africa, UK, and the Philippines, adding New Zealand, Turkey, and Brazil to its list in 2013.
Zomato became India’s first food-tech unicorn, valued at over one billion dollars. The platform connects customers with restaurant partners and delivery partners. In August 2022, Zomato expanded into grocery delivery by acquiring Blinkit. Its technology-driven model allows for seamless ordering, tracking, and delivery services, building a strong network of restaurants and consumers across multiple cities.
Q2FY26 performance highlights revenue growth
Despite the revenue tripling in Q2FY26, Zomato’s profits fell sharply due to higher expenses and operational costs. Analysts noted that the company continues to invest heavily in expansion, marketing, and technology improvements. The growth in revenue shows strong customer demand and adoption of online food and grocery delivery, but the drop in profit indicates that scaling operations remains cost-intensive. Investors will closely monitor upcoming quarters to assess whether higher revenue can translate into sustainable profitability.
Future prospects and market position
Renamed as Eternal Limited in March 2025, Zomato continues to hold a prominent position in the online food and grocery delivery sector. The company’s strategy focuses on technology integration, efficiency in operations, and expanding its service network across India and abroad. With a market cap of over Rs 3 lakh crore, Zomato is well-positioned to strengthen its leadership in the food-tech space while navigating profitability challenges in a competitive market.
Seven key points in a nutshell:
1. Zomato’s Q2FY26 revenue tripled to Rs 13,590 crore compared to last year.
2. Consolidated net profit fell 63 percent to Rs 65 crore in the same quarter.
3. Zomato shares fell 3.91 percent, closing at Rs 340.50 on October 16.
4. The company includes 21 subsidiaries and one trust in consolidated results.
5. Founded in 2008 as FoodieBay, renamed Zomato in 2010.
6. Expanded internationally to multiple countries, including UAE, UK, and Brazil.
7. Acquired Blinkit in 2022, entering grocery delivery, while remaining India’s first food-tech unicorn.
