E-Retail/ E-Commerce Archives

ETERNAL – Formerly Zomato – Q4 FY26 Earnings Call – 28-Apr-26

ETERNAL’s topline growth hinges on quick commerce execution and competitive rationality, while margins depend on store productivity and ad monetization scaling—both unproven at target levels.

1–2 minutes

Also see: ETERNAL – Formerly Zomato – Q4 FY26 Financial Results – 28-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Competitive intensity persists but remains rational; Eternal executes on 60% quick commerce CAGR and 5–6% food delivery margins via geographic/assortment expansion. Dark store count reaches 3,000 by March 2027, with tier 2/3 contributing ~30% of NOV growth. Ad monetization scales linearly with GMV. $1B EBITDA by FY29 achieved through reinvestment discipline.

ETERNAL – Formerly Zomato – Q4 FY26 Financial Results – 28-Apr-26

Eternal’s FY26 hinges on Blinkit’s EBIT turnaround and food delivery’s compounding floor, but negative FCF, rising leases, Going Out’s 10x loss, and outsized ESOP costs constrain profitability. Long‑term investors may find Blinkit compelling, yet unit economics and dark store paybacks matter more than suppressed consolidated PAT.

1–2 minutes

🔍 Observations

Topline

Consolidated revenue surged to ₹54,364 Cr in FY26 from ₹20,243 Cr in FY25 (+168.6%), almost entirely driven by Blinkit scaling from ₹5,206 Cr to ₹37,779 Cr — lifting its revenue share from 25.7% to 69.5% of group total.
Q4FY26 revenue hit ₹17,292 Cr (+196.5% YoY vs ₹5,833 Cr), with Blinkit alone contributing ₹13,232 Cr (76.5% of quarterly revenue).
Food delivery grew steadily — ₹10,159 Cr in FY26 vs ₹8,080 Cr in FY25 (+25.7%), a solid but modest secondary engine.

Bottomline

PAT fell to ₹366 Cr in FY26 from ₹527 Cr in FY25 (-30.6%), despite 2.7x revenue growth — cost absorption from Blinkit’s rapid scale-up overwhelmed operating leverage.
Q4FY26 PAT improved to ₹174 Cr vs ₹39 Cr in Q4FY25, with sequential momentum (Q3FY26: ₹102 Cr) signalling quarterly recovery.
Total comprehensive income turned negative at -₹166 Cr in FY26 vs +₹655 Cr in FY25, reflecting mark-to-market losses on investments and currency effects below the PAT line.

Margins

EBITDA margin compressed to 4.8% in FY26 from 8.5% in FY25 (EBITDA: ₹2,604 Cr vs ₹1,714 Cr), as delivery and stock-in-trade costs scaled faster than revenue. (Verification: FY26 EBITDA = PBT ₹615 + D&A ₹1,597 + Finance costs ₹392 = ₹2,604 Cr; margin = ₹2,604/₹54,364 = 4.79% ✓)
PAT margin contracted sharply to 0.7% in FY26 from 2.6% in FY25 — Blinkit’s unit economics, while improving, dilute consolidated profitability at scale.
Q4FY26 EBITDA margin of 4.8% (₹828 Cr on ₹17,292 Cr) holds flat sequentially, suggesting stabilisation. (Verification: Q4FY26 EBITDA = PBT ₹228 + D&A ₹468 + Finance ₹132 = ₹828 Cr ✓)

Growth Trajectory

Blinkit’s EBIT swung from -₹21 Cr in FY25 to +₹430 Cr in FY26 — a structural profitability inflection for the fastest-growing segment.
Hyperpure turned EBIT-positive at ₹16 Cr in FY26 vs -₹43 Cr in FY25, validating the B2B supply chain thesis.
Going Out and residual segments remain loss-making (combined EBIT: -₹498 Cr in FY26), suggesting early-stage bets that require continued investment before contributing to profitability.

ETERNAL (Zomato) – Q3 FY26 Earnings Call – 21-Jan-26

ETERNAL’s topline: Growth hinges on competitive rationalization (50–100% YoY range) and Tier 2/3 penetration (30% NOV mix assumption); bottomline: ROCE-driven capex and margin volatility introduce 10–15% EPS variability; margins: 4–6% NOV achievable only if assortment expansion and automation offset competitive pressures.

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

Competition rationalizes in H2 2026, enabling 70–80% YoY growth with 50bps QoQ margin expansion. Store throughput stabilizes as assortment matures, and Tier 2/3 contributes 30% of NOV with 10% lower margins than Tier 1. ROCE converges to 40%+ by FY27, but free cash flow margins remain opaque. Implication: Topline meets guidance; margins expand to 4–5% NOV by FY26.