What Zomato Q1 results Latest Report Means for You (and Your Wallet)

Ever wonder how Zomato/Blinkit make money? Dive into Eternal’s latest Q1 results to understand sales, profits, and what their big investments mean for you.

Zomato Q1 results

You probably use Zomato to order food or Blinkit to get groceries in a flash. But have you ever wondered how these companies actually make money, or what their latest “report card” looks like? Well, Zomato’s parent company, Eternal, recently released its Q1 financial results, and they tell an interesting story that’s worth understanding, even if you’re not a finance expert.

 

Beyond the Delivery App: Understanding Eternal’s Business (Zomato Q1 results)

First off, let’s clear up a common point of confusion. While we say “Zomato,” the company that’s publicly traded on the stock market is actually called Eternal. This parent company owns:

• Zomato (Food Delivery): Your go-to for restaurant food.
• Blinkit (Quick Commerce): The super-fast grocery and essentials delivery service.
• Hyperpure (B2B Supplies): This supplies ingredients to restaurants.
• District: Their newer venture for events and experiences.

So, when Eternal reports its results, it’s a look at how all these different parts are performing together.

 

The Big Picture: Good News on Sales, Not So Much on Profit (Zomato Q1 results)

 

Eternal’s Q1 results (that’s April to June 2025 for their financial year) showed a mixed bag:

• Sales are booming! The company saw its revenue (the money it earned from operations) jump by an impressive 70.4% compared to last year, reaching ₹7,167 crore. This means more people are using their services, and more business is happening on their platforms.
• But profits are down significantly. Despite the huge jump in sales, Eternal’s net profit dropped sharply by 90% to just ₹25 crore this quarter, compared to ₹253 crore last year.

Now, this might sound confusing. How can sales be way up, but profit be way down? This is where the story gets interesting.

 

Why Less Profit When Sales Are So High? It’s About Investment (Zomato Q1 results)

 

The main reason for the big drop in profit is simple: Eternal is investing heavily, especially in Blinkit and its newer “District” segment.

Think of it like this: Imagine you’re starting a new, super-fast delivery service. You’d need to:

• Open lots of new stores: Blinkit opened 243 new “dark stores” (small warehouses) this quarter alone! That costs money to set up and run.
• Spend on marketing: To get more people to use the service, you’d spend a lot on ads and promotions.
• Build the infrastructure: Setting up the tech and logistics to ensure speedy deliveries.

All these investments eat into profits in the short term. Eternal believes that by spending now, they’ll capture a much bigger market share and become even more profitable in the long run. They’re prioritizing growth over immediate earnings, which is common for fast-growing tech companies.

 

Blinkit is the Star of the Show

 

The Q1 results clearly show that Blinkit is becoming a massive part of Eternal’s business, and fast!

• Blinkit’s sales shot up by a whopping 155% compared to last year, reaching ₹2,400 crore.
• For the very first time, the total value of orders placed on Blinkit (Net Order Value, or NOV) actually surpassed Zomato’s core food delivery business. This is a huge milestone, showing just how quickly quick commerce is growing and becoming central to Eternal’s strategy.

While Blinkit is still losing money as they invest and expand, the losses are slowly improving. This suggests they’re getting more efficient even as they grow rapidly.

 

What About Zomato Food Delivery and Others?

 

Zomato’s food delivery business is still growing steadily, just not as dramatically as Blinkit. Its profitability is also improving, which is good news.

Hyperpure, the business that supplies ingredients to restaurants, also saw strong growth. And District, their events and experiences venture, more than doubled its sales. So, while Blinkit is stealing the spotlight, the other parts of the business are performing well too.

 

Why the Stock Market Liked These Results

 

You might be surprised to hear that despite the big profit drop, Eternal’s shares actually jumped significantly after these results were announced. Why?

Investors often look beyond just the current profit. They saw:

• Massive growth in sales, especially from the high-potential Blinkit.
• Strategic investments that position the company for future dominance.
• Signs that even though Blinkit is expanding rapidly, it’s becoming more efficient.

This tells investors that the company is playing the long game, focusing on capturing a huge market now to make bigger profits later.

 

What This Means For You

 

For everyday people, Eternal’s Q1 results highlight a few key things:

• The delivery industry is still booming: Whether it’s food or groceries, our demand for convenience is driving huge growth for these companies.
• Companies invest for the future: Not every successful company makes big profits every quarter, especially when they’re rapidly expanding into new areas.
• Blinkit is a force to be reckoned with: If you haven’t used quick commerce yet, you’ll likely see it becoming an even bigger part of our daily lives.

So, the next time you tap that app for a delivery, you’ll know a bit more about the financial engine making it all happen!