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Eternal Limited (formerly Zomato Ltd)

Lesson 278/323 | Study Time: 20 Min

Course: Quarterly Result Updates & Analysis

Eternal Limited (formerly Zomato Ltd)

Q4 FY26 Results Review | Sector: Consumer Internet

Advisory Summary & Rating

CMP (₹)	Target Price (12M)	Rating	Risk Profile	M-Cap (Cr)
258	Under Review	Accumulate on Dips	High / Growth	~2,37,235

1. Q4 FY26 Financial Scorecard (Consolidated)

The headline numbers show a massive divergence due to the accounting transition in the Quick Commerce (QC) business to an inventory-led model.

Metric (₹ in Cr)	Q4 FY26	Q4 FY25	YoY (%)	Q3 FY26	QoQ (%)
Revenue from Ops	17,292	5,833	+196.5%	16,315	+6.0%
Adj. EBITDA	429	165	+160.0%	364	+17.9%
PAT (Net Profit)	174	39	+346.2%	102	+70.6%
PAT Margin (%)	1.01%	0.67%	+34 bps	0.63%	+38 bps

Note: Like-for-like Revenue growth (adjusting for Blinkit’s model change) is estimated at ~64% YoY.

2. Segmental Performance & KPIs

A. Food Delivery (Zomato)

Net Order Value (NOV): Grew 19% YoY to ₹9,757 Cr.
Adj. EBITDA Margin: Improved to 5.5% of NOV (Absolute EBITDA: ₹532 Cr).
Outlook: Management guides for 20%+ long-term NOV growth as they tap into price-sensitive segments.

B. Quick Commerce (Blinkit)

Hyper-Scaling: Revenue surged 674% YoY to ₹13,232 Cr (now 76.5% of consolidated top-line).
Profitability Milestone: Achieved positive Adj. EBITDA of ₹37 Cr (0.3% of NOV) vs a loss in the previous year.
Store Footprint: Added 216 net new stores; total count stands at 2,243.

C. Hyperpure & Going-out

Hyperpure: Revenue at ₹978 Cr (Restaurant supply grew 37% YoY). Turned EBITDA positive (₹5 Cr).
Going-out (District): NOV grew 46.5% YoY; losses narrowed to ₹81 Cr from ₹121 Cr in Q3.

3. Shareholding Pattern Shift: The Great Rotation

A significant "Control Transfer" occurred this quarter from Foreign to Domestic hands.

Category	Mar 2026 (%)	Dec 2025 (%)	Change (bps)
Promoters	0.00	0.00	-
Foreign Institutions (FII/FPI)	32.61	47.30	-1,469
Mutual Funds (DII)	28.91	16.40	+1,251
Retail & Others	31.41	30.20	+121

Institutional Insight: Major exits by Antfin Singapore and Kuwait Investment Authority were absorbed by domestic giants like SBI MF and HDFC MF, signaling strong local institutional bottom-fishing and long-term conviction.

4. Forward Guidance & Valuation

Growth Target: Management targets $20 Billion Annual NOV within 2 years and $1 Billion Adjusted EBITDA by FY29.
Quick Commerce CAGR: Expected to remain >60% for the next 3 years.
Valuation: TTM P/E remains optically high (>1000x) due to low PAT base. We value the company on a Sum-of-the-Parts (SOTP) basis, attributing a significant premium to Blinkit's retail disruption potential.

5. Key Investment Risks

Competitive Intensity: Aggressive discounting by competitors in Quick Commerce could stall the path to 2-3% PAT margins.
Regulatory Scrutiny: Intensifying focus on gig-worker welfare and anti-competitive practices in the food-tech space.
Consumption Slowdown: Any macro-headwind affecting urban discretionary spend could impact AOV (Average Order Value).

Fairvalue: https://docs.google.com/spreadsheets/d/e/2PACX-1vSrP_szSc_bqCYFSTpgHt82SGnHnEkQDWFtdLxuZit9u7QWx46Fcf7YYzzB9S6TrN2aIg7MpTz_cl_t/pubhtml?gid=749202956&single=true

Mandatory Disclaimer

THIS REPORT IS FOR EDUCATIONAL PURPOSES ONLY.

This report is prepared for SEBI Registered Investment Advisers. The data is based on the Q4 FY26 earnings release dated April 28, 2026. This is not a direct "Buy/Sell" recommendation for retail investors. Performance of the stock (CMP ₹258) is subject to market risks.

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Piyush Patel

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