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📊 Eternal Limited – Q4FY25 & FY25 Financial and Strategic Performance Update

Created by Piyush Patel_ in Company Update 1 May 2025

📊 Eternal Limited – Q4FY25 & FY25 Financial and Strategic Performance Update

CMP: ₹232
Industry: Online Services / Quick Commerce / Food Delivery
Formerly Known As: Zomato Limited

🔍 Key Highlights & Performance Overview

🧾 NOV (Net Order Value) Growth

Q4FY25: ₹17,440 Cr — 53% YoY, 5% QoQ
FY25 (like-for-like): ~48% YoY growth

Transitioned from GOV to NOV for improved realism in revenue estimation (excluding inflated MRP).

💰 Consolidated Adjusted Revenue Growth

Q4FY25: ₹6,188 Cr — 60% YoY, 8% QoQ
FY25 (Reported): ₹8,617 Cr vs ₹6,622 Cr in FY24 — 30% YoY growth

🧩 Segmental Growth Overview

Quick Commerce (Blinkit): Added 294 new stores in Q4FY25; store network expanded to 1,301. Revenue & NOV rose significantly.
Hyperpure (B2B): Revenue grew 93% YoY in Q4FY25; non-restaurant B2B business grew 150%+ YoY.
Food Delivery: Slower NOV growth due to market saturation, competition, and delisting of ~19,000 low-compliance restaurants.
Going Out (District App): Under transition; ~1/3rd of GOV now transacted through it

📈 Profit Margins Analysis (Q4FY25 vs Q3FY25 & Q4FY24)

Metric	Q4FY25	Q3FY25	Q4FY24
Adjusted EBITDA	₹165 Cr	-	-
EBITDA Margin (Food Delivery)	5.2%	~4.8%*	3.8%
Net Profit	₹39 Cr	₹59 Cr	₹175 Cr
EPS (Basic)	₹0.04	₹0.07	₹0.20

📉 Consolidated Profit Growth

FY25 PAT: ₹527 Cr vs ₹351 Cr in FY24 — 50%+ YoY growth
Q4FY25 PAT: ₹39 Cr — impacted by higher marketing & warehousing costs

🧮 Financial Ratios at CMP ₹232

Ratio Category	FY25 Value	Remarks
Solvency	Debt-to-Equity ~0.06x	Highly underleveraged and asset-light
Liquidity	Current Ratio: ~3.5x	Excellent short-term financial strength
Profitability	EBITDA Margin: ~2.7%	Low due to reinvestment in scaling
Valuation	P/E Ratio: ~105x	Premium valuation priced for future growth
Cash Reserves	₹18,824 Cr (Q4FY25)	Strong war chest for expansion and M&A

🌐 Industry KPI & Outlook

Quick Commerce Expansion: Blinkit growing aggressively in metros; shifting to inventory-led (1P) model post IOCC status.
Food Delivery Challenges: Saturation, price wars, and competition from packaged foods via Q-commerce.
B2B Potential: Hyperpure’s non-restaurant supply scaling rapidly, targeting 4-hour delivery and logistics solutions.
New Metric (NOV): More realistic consumption metric considering Indian MRP anomalies — gaining relevance over GOV.

🔮 Strategic Outlook

🔸 Near-Term:

Margin pressure likely to persist due to aggressive investments.
Store and customer acquisition focus over short-term profits.
Regulatory clarity around inventory ownership awaited.

🔹 Long-Term:

Strong prospects in quick commerce with scalable warehousing.
Food delivery to rebound with leadership reshuffle and focus on trust.
Hyperpure to evolve as a logistics-tech B2B platform across cities.

⚠️ Disclosure & Risks

Company faces GST litigation over delivery charges (₹420 Cr demand).
Short-term profitability sacrificed for expansion amid intense competition.
NOV shift may take time for market participants to digest and adopt fully.

✅ Verdict

Eternal is aggressively positioning itself for long-term leadership in India’s consumption economy. While FY25 saw heavy investment and margin compression, the platform’s scale, NOV-led transparency, and war chest of over ₹18,000 Cr bolster investor confidence. Strategic reorientation, especially in quick commerce and B2B, suggests multi-year runway — ideal for long-term investors with high-risk appetite.