📊 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)
📉 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
🌐 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.
