Food delivery company Zomato’s parent on Monday reported a 90 percent year-on-year (YoY) drop in consolidated net profit for Q1FY26, at Rs 25 crore compared to Rs 253 crore in the same quarter last year.
The operator of Zomato and Blinkit reported revenue from operations of Rs 7,167 crore, up 70 percent from Rs 4,206 crore a year ago.
The earnings were announced during market hours, and shares of Eternal surged over 7 percent following the announcement, hitting the day’s high of Rs 274 on NSE.
The sharp decline in profit was on account of the continuing investments in quick commerce segment and going-out.
“On the profitability front, consolidated Adjusted EBITDA declined 42 percent YoY to Rs 172 crore in Q1FY26, largely on account of the continuing investments in quick commerce and going-out, which were partly offset by the improvement in food delivery Adjusted EBITDA margin (as a percent of NOV) to 5.0 percent from 3.9 percent a year ago,” the company said in its exchange filing.
