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Eternal Ltd (formerly Zomato) is expected to post a muted bottom line in its March quarter (Q4 FY25) results as higher losses from its quick commerce arm, Blinkit, continue to weigh heavily on profitability. Despite strong top-line growth, analysts expect either marginal profit or minor losses for the quarter.
According to JM Financial, Eternal's net profit may plunge 99.6% year-on-year (YoY) to just Rs 70 lakh, compared to Rs 175.3 crore reported in the same quarter last year. Total revenue is expected to surge 60.6% YoY to Rs 5,721 crore, driven largely by an explosive rise in Blinkit's performance.
Meanwhile, Nuvama predicts Eternal will clock Rs 5,921.30 crore in revenue, marking a 66.2% YoY jump, aided by a 123.8% rise in Blinkit’s sales and a 15.7% increase in the food delivery segment. However, Nuvama also forecasts a consolidated net loss of Rs 36.10 crore.
EBITDA is likely to decline, with JM Financial estimating a 27.8% YoY fall to Rs 62.3 crore. The EBITDA margin is also projected to shrink by 133 basis points to 1.1%. Kotak Institutional Equities has forecast a Rs 250 crore EBITDA loss for Blinkit alone, primarily due to new store expansion.
Analysts caution that Blinkit’s recent store additions may dilute short-term profitability despite driving strong order volume growth. JM Financial projects a sequential 17% increase in Blinkit’s gross order value, with monthly transacting users rising from 10.6 million to 12.9 million.
Food delivery metrics are also expected to show a modest dip in average order values and frequency, but take-rates are seen improving due to a full quarter of platform fees at Rs 10 per order. Contribution margins in the food delivery segment are projected to rise to 8.8%, while Blinkit's may contract to 2%.
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