Eternal (formerly Zomato) reported a 69.4% year-on-year surge in advertising and promotional spend during Q1 FY26, reaching ₹671 crore, up from ₹396 crore in Q1 FY25. Sequentially, ad investments rose 5.8% from ₹634 crore in Q4 FY25.
Despite robust growth in revenue-from operations crossing ₹7,167 crore, a 70.4% increase over ₹4,206 crore in Q1 FY25-the company’s gains were overshadowed by elevated expenses. Net profit plunged 90.6% YoY, landing at ₹25 crore, compared to ₹266 crore in the same quarter last year. The steep decline was largely attributed to sustained investments in emerging verticals and infrastructure expansion.
Business Segment Highlights
- Food Ordering & Delivery (India): Revenue reached ₹2,261 crore, marking a 16.4% YoY rise from ₹1,942 crore.
- Hyperpure (B2B): Beating expectations, revenue soared 89.3% YoY to ₹2,295 crore (₹1,212 crore in Q1 FY25).
- Going-Out Segment: Comprising dining-out and entertainment tickets, revenue jumped 117.9% YoY to ₹207 crore, up from ₹95 crore.
Quick Commerce: Blinkit Leads Growth
Blinkit, Zomato’s rapid delivery arm, achieved a spectacular 154.8% YoY revenue surge, crossing ₹2,400 crore, compared to ₹942 crore a year ago. The division added 243 net new stores, growing its network to 1,544 outlets. Eternal projects reaching 2,000 stores by December 2025, with long-term targets aimed at 3,000 locations.
Zomato’s aggressive ad spending signals its commitment to scaling new verticals and strengthening brand visibility, even as profitability remains under pressure in the short term.
