Zomato (Eternal Ltd) Q1FY26 Results | Blinkit Overtakes Food Delivery

Zomato’s

Q1 results surprised the market with strong revenue growth, even though profits dipped sharply. Key Financials (YoY): Revenue: ₹7,167 Cr, up 70% from ₹4,206 Cr Net Profit: ₹25 Cr, down from ₹253 Cr EBITDA: ₹115 Cr vs ₹177 Cr EBITDA Margin: 1.6% vs 4.2% Despite the drop in profits, the stock rose 7% post-results, thanks to strong operational metrics and growth in the Blinkit segment. Quick Commerce (Blinkit) Highlights: Revenue up 154% YoY to ₹2,400 Cr Net order value (NOV): ₹9,203 Cr, now surpassing food delivery (₹8,976 Cr) 243 new Blinkit stores added this quarter (Total: 1,544) Smaller cities are becoming profitable despite lower order values New Blinkit stores are breaking even in just 1 month Target: 2,000 stores by Dec 2025, long-term goal of 3,000 Food Delivery & Other Segments: Food delivery shows signs of recovery with 13% YoY and 9% QoQ growth "Going Out" (restaurant reservations & events) grew 95% YoY Management Commentary: Zomato believes the worst is behind. Quick commerce margins may have bottomed out, and overall growth is picking up again after a slowdown. New Initiative – District: Management sees District as a $3 billion opportunity in the next 5 years Expected to generate ₹1,250 Cr (approx.) in annual EBITDA Cash Position: Strong cash reserves of ₹18,857 Cr, up from ₹18,824 Cr last quarter Takeaway: While short-term profitability dipped, Zomato’s strong growth in Blinkit, renewed momentum in food delivery, and robust cash position make the long-term story compelling.