Competition, store expansion may weigh on Eternal’s margins

Growth accelerated for Zomato operator Eternal in the second quarter of financial year 2026 (Q2FY26).

- DEVANGSHU DATTA

Zomato’s business to commerce (B2C) operations delivered a strong 57 per cent year-on-year (Yo-Y) rise in net order value (NOV) to ₹23,164 crore while consolidated revenue soared 183 per cent Yo-Y (90 percent Q-o-Q) to ₹13,590 crore during the period, with like-for-like (LFL) growth of 65 percent, and acceleration in the quick commerce (QC) segment, which recorded NOV growth of 137 percent Yo-Y (27 percent Q-o-Q).

Zomato reported operating profit of ₹239 crore and operating profit margins of 1.8 percent, down 295 basis points Yo-Y, due to higher operating costs due to rapid store expansion.

Net profit dropped 63 per cent Yo-Y to ₹65 crore.