Eternal Limited, the parent company of Zomato, Blinkit, Hyperpure and District, delivered a landmark set of numbers in Q1 FY27. The quarter highlighted a significant shift in the company's business mix, with Blinkit officially overtaking Zomato's food delivery business to become the largest contributor to revenue.
The company's consolidated revenue surged due to the rapid expansion of quick commerce, continued growth in food delivery, improving performance in Hyperpure and strong traction in the District business. However, despite impressive revenue growth and EBITDA expansion, Eternal's net profit declined sequentially and missed market expectations, creating mixed investor sentiment.
For investors tracking Zomato Q1 FY27 Results and the long-term outlook of India's digital consumption ecosystem, this quarter provides important insights into where the company's future growth is likely to come from.
Table of Contents
- Eternal Q1 FY27 Results: Key Highlights
- Consolidated Financial Performance
- Blinkit Emerges as Eternal's Largest Growth Engine
- Zomato Food Delivery Business Performance
- Hyperpure Continues Margin Improvement
- District Business Remains in Investment Mode
- Segment-Wise Revenue Contribution
- Expense Analysis and Cost Structure
- Strategic Developments During the Quarter
- Management Commentary and Growth Outlook
- Key Positives for Investors
- Risks and Concerns to Monitor
- Investment View on Eternal After Q1 FY27 Results
- Final Thoughts
Eternal delivered one of its strongest revenue growth quarters, supported by Blinkit's rapid scale-up and the transition to a full inventory-led accounting model in quick commerce.
Some of the most important highlights from the quarter include:
| Metric |
Q1 FY27 |
| Revenue from Operations |
₹20,211 crore |
| Adjusted Revenue |
₹20,648 crore |
| Net Profit (PAT) |
₹92 crore |
| Adjusted EBITDA |
₹555 crore |
| Net Order Value (NOV) |
₹31,120 crore |
| Market Capitalisation |
~₹2.79 lakh crore |
| Share Price After Results |
~₹289.50 |
The quarter reinforces the fact that Eternal is no longer solely a food delivery company. It is increasingly becoming a diversified digital commerce platform driven by food delivery, quick commerce, B2B supply chains and going-out services.
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The headline feature of the Zomato Q1 FY27 Financial Results was the extraordinary growth in revenue.
Revenue from operations jumped to ₹20,211 crore, representing growth of 182% year-on-year from ₹7,167 crore reported in Q1 FY26. On a sequential basis, revenue increased 16.9% compared to ₹17,292 crore in Q4 FY26.
Adjusted revenue stood at ₹20,648 crore, reflecting a robust 173% year-on-year increase.
The sharp rise in revenue was primarily driven by:
1. Blinkit's rapid scale expansion
Quick commerce continues to gain market share across urban India as consumers increasingly adopt ultra-fast grocery and essentials delivery.
2. Higher order volumes across platforms
Growth in customer engagement contributed to a significant increase in Net Order Value across businesses.
3. Expansion of dark store infrastructure
The company added hundreds of new dark stores, strengthening delivery density and improving service levels.
4. Shift to inventory-led revenue accounting
Blinkit's move towards a full 1P inventory model significantly boosted reported revenue figures.
While revenue growth remained exceptional, profitability painted a more mixed picture.
5. Net Profit Misses Street Expectations
Net profit for the quarter stood at ₹92 crore.
This represented:
- 268% year-on-year growth
- 3.7x increase versus Q1 FY26
- 47.1% decline compared to Q4 FY26
- Significant miss versus market expectations of around ₹258 crore
The sharp sequential decline in profit was one of the key concerns raised by investors following the results announcement.
6. Adjusted EBITDA Remains Strong
Adjusted EBITDA rose to ₹555 crore.
This translates into:
- 223% year-on-year growth
- 29% quarter-on-quarter growth
The EBITDA performance demonstrates that Eternal continues to improve operational leverage despite investing aggressively in growth businesses.
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Want to evaluate how the market has responded to Eternal's Q1 FY27 performance? Check the Eternal share price to review the latest stock movement, valuation ratios, and price charts.
The biggest takeaway from the Zomato Q1 Results 2027 was Blinkit's emergence as the largest business segment within Eternal.
Blinkit Q1 FY27 Performance
| Metric |
Blinkit |
| Revenue |
₹15,664 crore |
| Revenue Contribution |
77.5% |
| YoY Growth |
553% |
| Adjusted EBITDA |
₹102 crore |
| NOV |
₹17,132 crore |
| NOV Growth |
86% YoY |
| Total Dark Stores |
2,443 |
Blinkit generated ₹15,664 crore in revenue during the quarter, accounting for nearly 78% of Eternal's consolidated operating revenue.
The platform's NOV increased 86% year-on-year to ₹17,132 crore, reflecting strong demand for quick-commerce services across major cities.
Quick Commerce Profitability Milestone
A major achievement during the quarter was Blinkit's transition into positive adjusted EBITDA territory.
The business reported adjusted EBITDA of ₹102 crore, marking a significant turnaround from previous losses.
This milestone is important because investors have long debated whether quick commerce can become profitable while maintaining rapid growth. Blinkit's Q1 FY27 performance suggests that scale, network density and operational efficiency can coexist.
Dark Store Expansion Continues
Blinkit added approximately 200 net new dark stores during the quarter, taking the total network to 2,443 locations.
A larger dark store network enables:
- Faster delivery times
- Improved product availability
- Higher customer retention
- Better delivery economics
- Greater market penetration
The company continues to prioritise density-driven expansion rather than indiscriminate growth.
Although Blinkit is now the largest revenue contributor, Zomato's food delivery business remains the company's most profitable segment.
Food Delivery Q1 FY27 Performance
| Metric |
Food Delivery |
| Revenue |
₹3,100 crore |
| YoY Growth |
37% |
| Adjusted EBITDA |
₹606 crore |
| NOV |
₹10,769 crore |
| NOV Growth |
20% YoY |
| EBITDA Margin |
5.6% of NOV |
The food delivery business generated ₹3,100 crore in revenue and delivered ₹606 crore in adjusted EBITDA.
The segment's NOV increased 20% year-on-year to ₹10,769 crore.
Why Food Delivery Remains Important
Food delivery continues to act as Eternal's cash-generating engine.
The business benefits from:
- Strong brand recognition
- Large customer base
- Established restaurant partnerships
- Improving operational efficiency
- Consistent margin expansion
Management highlighted improvements in regional density and marketplace efficiency, which continue to support profitability.
While growth rates are lower than Blinkit, food delivery remains one of the most important pillars supporting Eternal's broader ecosystem.
Hyperpure, Eternal's B2B restaurant supply platform, showed encouraging progress during the quarter.
Hyperpure Q1 FY27 Performance
| Metric |
Hyperpure |
| Revenue |
₹1,034 crore |
| Adjusted EBITDA |
₹6 crore |
| EBITDA Status |
Positive |
| NOV Margin |
0.6% |
The business generated revenue of ₹1,034 crore and reported positive adjusted EBITDA of ₹6 crore.
This marks a notable improvement compared to Q1 FY26 when the segment reported an EBITDA loss of ₹18 crore.
Why Hyperpure Matters
Hyperpure strengthens Eternal's ecosystem by serving restaurant partners directly.
Benefits include:
- Deeper merchant relationships
- Improved supply chain integration
- Cross-selling opportunities
- Enhanced operational efficiencies
The move into positive EBITDA suggests management's efforts to improve unit economics are beginning to deliver results.
District, Eternal's going-out and experiences platform, continued to expand rapidly during the quarter.
District Q1 FY27 Performance
| Metric |
District |
| Revenue |
₹318 crore |
| YoY Growth |
54% |
| NOV |
₹3,218 crore |
| NOV Growth |
60% |
| EBITDA |
-₹62 crore to -₹65 crore |
The business recorded strong NOV growth of 60% year-on-year to ₹3,218 crore.
Growth was supported by:
- Event ticketing
- Dining-out services
- Experiences marketplace expansion
- Higher customer engagement
Why Losses Continue
District remains in an investment phase.
Management is prioritising scale and market share acquisition over short-term profitability. As a result, the business continues to generate negative EBITDA.
Investors should view District as a long-term optionality play rather than a near-term earnings contributor.
Eternal's revenue mix reflects the company's rapid transformation from a food delivery-focused business into a broader digital commerce platform. Blinkit has now become the largest contributor to revenue, highlighting the growing importance of quick commerce in the company's growth strategy.
| Segment |
Revenue Contribution |
| Blinkit |
77.5% |
| Food Delivery |
15.3% |
| Hyperpure |
5.1% |
| District |
1.6% |
Blinkit accounted for over three-fourths of consolidated revenue in Q1 FY27, driven by strong order growth and continued network expansion. Food Delivery remained the second-largest segment and continued to be a key profit driver. Meanwhile, Hyperpure and District contributed a smaller share of revenue but support Eternal's long-term strategy of building a diversified consumer ecosystem.
The revenue mix clearly shows that while food delivery remains important, Blinkit has emerged as Eternal's primary growth engine and is playing an increasingly central role in shaping the company's future growth trajectory.
The rapid expansion of quick commerce inevitably comes with significant operational costs.
Total expenses during the quarter increased to ₹20,314 crore.
Major Expense Categories
| Expense Head |
Amount |
| Material Costs |
₹12,031 crore |
| Delivery Expenses |
₹3,150 crore |
| Employee Benefits |
₹1,068 crore |
| Advertising & Promotions |
₹945 crore |
Material Costs Dominate
Material costs accounted for roughly 59% of total expenses.
This reflects Blinkit's inventory-led operating model, where products are purchased, stored and sold directly.
Delivery Costs Continue to Rise
Delivery-related expenses rose 68.5% year-on-year to ₹3,150 crore.
The increase was driven by:
- Higher order volumes
- Fleet expansion
- New dark store additions
- Geographic expansion
Aggressive Customer Acquisition Spending
Advertising and promotional spending increased 41% year-on-year to ₹945 crore.
Much of this spending was directed toward:
- Blinkit user acquisition
- District growth initiatives
- Brand awareness campaigns
- Customer engagement programmes
Beyond financial performance, Eternal also announced an important corporate restructuring initiative.
Transfer of Nugget by Zomato Business
The board approved a Business Transfer Agreement for the transfer of the business operating under the name "Nugget by Zomato" to Carthero Technologies Private Limited, a wholly owned subsidiary.
The transaction value stands at ₹350 crore.
The restructuring is expected to improve organisational focus and streamline business operations across the group.
Want to understand how Eternal's growth momentum evolved before this quarter? Read the Eternal Q4 FY26 Results Analysis to compare Blinkit's expansion, profitability trends, and the company's financial performance across consecutive quarters.
CEO Deepinder Goyal emphasised the importance of network density in driving sustainable growth.
According to management, the quick-commerce business benefits from a self-reinforcing flywheel:
- More dark stores improve coverage.
- Better coverage increases order frequency.
- Higher order density improves efficiency.
- Improved efficiency supports margins.
- Stronger margins enable further expansion.
This strategy is central to Blinkit's long-term growth model and explains why management continues investing aggressively in infrastructure.
Despite the profit miss, Eternal delivered several encouraging developments during the quarter that strengthen its long-term growth story and highlight improving business fundamentals.
1. Blinkit Achieves EBITDA Profitability
The transition to positive EBITDA represents a major milestone for India's quick-commerce industry.
2. Food Delivery Remains Highly Profitable
Zomato's core food delivery business continues generating strong cash flows and healthy margins.
3. Revenue Growth Remains Exceptional
Consolidated revenue growth of 182% year-on-year demonstrates strong execution across businesses.
4. Hyperpure Reaches Positive EBITDA
The B2B platform is beginning to show signs of operating leverage.
5. Strong NOV Growth Across Segments
Net Order Value increased 54.2% year-on-year to ₹31,120 crore, highlighting healthy consumer demand.
While the long-term outlook remains promising, investors should closely track several challenges that could influence profitability and valuation in the coming quarters.
1. Sequential Profit Decline
PAT declined 47.1% quarter-on-quarter and missed analyst expectations.
2. District Continues to Generate Losses
The segment remains in heavy investment mode and may take time to achieve profitability.
3. Rising Cost Structure
Inventory costs, delivery expenses and customer acquisition spending continue to consume a large portion of revenue.
4. Execution Risk in Quick Commerce
Maintaining profitability while expanding aggressively remains a key challenge.
5. Competitive Intensity
Competition within quick commerce remains high and could impact margins over time.
The Eternal Q1 FY27 Results reinforce the company's transition from a food delivery platform into a broader digital commerce ecosystem.
Blinkit's profitability milestone is arguably the most important development from the quarter. It validates management's belief that quick commerce can eventually become a large and profitable business.
At the same time, investors cannot ignore the sharp sequential decline in net profit and the continued cash burn within the District segment.
The long-term investment thesis remains centred on four major pillars:
- Blinkit's rapid growth and profitability expansion
- Stable earnings from food delivery
- Hyperpure's improving economics
- District's future monetisation opportunity
If management successfully balances growth with profitability, Eternal could continue strengthening its position across multiple high-growth consumer internet categories.
The Zomato Q1 FY27 Results Analysis highlights a company undergoing a significant transformation. Revenue growth remained exceptional, Blinkit became the largest business segment, Hyperpure achieved positive EBITDA and food delivery continued generating strong profits.
However, the quarter also revealed important challenges, including a sharp sequential decline in profit, rising operating costs and continued losses in the District business.
Overall, the Zomato Q1 FY27 Financial Results suggest that Eternal is successfully building a multi-business digital commerce ecosystem, with Blinkit emerging as the primary driver of future growth. For long-term investors, the key focus will remain on whether the company can sustain rapid expansion while improving profitability across all business verticals.