Eternal share price will be in focus on Friday after the food delivery major reported its Q4 results. Eternal (formerly Zomato), is the operator of food delivery platform Zomato and quick commerce firm Blinkit.
Eternal reported a net profit of ₹39 crore in the fourth quarter of FY25, recording a sharp fall of 78% from ₹175 crore in the same period a year ago. Profit for the full financial year 2024-2025 increased 50% to ₹527 crore compared to ₹351 crore in the previous fiscal.
The company’s revenue from operations in Q4FY25 increased 64% year-on-year (YoY) to ₹5,833 crore.
Consolidated adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) during the March quarter declined 15% YoY to ₹165 crore.
Eternal ended the March 2025 quarter with a cash balance of ₹18,824 crore, as against ₹19,235 crore in the previous quarter.
Adjusted revenue for Eternal’s food delivery business rose 17.5% YoY to ₹2,409 crore in Q4. The gross order value (GOV) for the segment declined 1.3% QoQ to ₹9,778 crore. GOV increased from ₹8,439 crore in Q4FY24.
Should you buy Eternal shares after Q4 results?
Eternal delivered broadly inline operating performance in Q4. However, profitability sees a further cut, as EBITDAM as a % of GOV fell to -1.9% from -1.3% in Q3, due to higher customer acquisition cost on account of accelerated store openings (294 in Q4, its highest-ever net store addition) and heightened competitive intensity, said Dipeshkumar Mehta, Senior Research Analyst at Emkay Global Financial Services.
Eternal’s management target of reaching a 2,000 store-count by December 2025 will keep the loss momentum sustained in the near term, he noted.
“Eternal is focused on growing its market share, especially in the face of heightened competition, and to prioritize growth over profitability in the short term. We expect the stock price to remain range-bound in the near term due to heightened competitive intensity in QC and planned investments in Going-out (to scale it up),” Mehta said.
Emkay Global retains a ‘Buy’ rating on Eternal shares and March 2027 DCF-based target price of ₹290 apiece.
On Wednesday, Eternal share price ended 0.58% higher at ₹232.50 apiece on the BSE.
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