Eternal Q3 Results: Profit Jumps 73%; CEO Steps Down

In the third quarter of FY26, Eternal, the parent company of Zomato, reported a consolidated net profit of ₹102 crore, marking a 73% year-on-year rise from ₹59 crore in the same period last year. Revenue from operations surged by 201% to ₹16,315 crore, compared with ₹5,405 crore in the previous year.

The results were announced alongside the news that founder Deepinder Goyal will step down as Group Chief Executive Officer effective February 1, 2026.

What Drove Eternal’s Q3FY26 Revenue?

The December-quarter performance was largely supported by the company’s quick commerce business, which continues to scale rapidly. Adjusted revenue for the quarter rose 190% year-on-year to ₹16,692 crore.

This jump was partly driven by a change in the accounting structure, with Eternal moving to an inventory ownership model in quick commerce. On a like-for-like basis, adjusted revenue rose by 64% annually, suggesting strong underlying demand.

Consolidated adjusted EBITDA climbed 28% year over year to ₹364 crore, despite margins being 5.4% of adjusted revenue. Adjusted EBITDA rose 63% quarter over quarter, demonstrating operating leverage as scale improves. With improved contributions from core businesses, profit before tax increased 37.1% year over year to ₹170 crore.

Adjusted revenue from food delivery increased 26.5% year-on-year to ₹3,053 crore, with a sequential growth of 7%. The B2C business recorded a net order value of ₹25,732 crore, up 55% year-on-year, crossing the ₹1 lakh crore annualised mark for the first time.

The company’s Going Out business, operated under the District brand, posted a 20% year-on-year increase in net order value to ₹2,587 crore. However, due to ongoing investments, the segment's losses grew, with the adjusted EBITDA loss rising to ₹121 crore

Why is Deepinder Goyal leaving Zomato?

On January 21, in a letter to shareholders, Goyal said that the role of a public company CEO in India comes with legal and operational expectations that demand singular focus.

Goyal stated, “Of late, I have found myself drawn to a set of new ideas that involve significantly higher-risk exploration and experimentation. These are the kinds of ideas that are better pursued outside a public company like Eternal.”

Pending shareholder and board approvals, Goyal will transition to the role of Vice Chairman. He has also chosen to forfeit his unvested employee stock options, which will return to the ESOP pool without causing dilution. The company noted that this step keeps long-term incentives aligned with shareholder interests.

What Does This Mean Going Ahead?

Albinder Dhindsa, currently the Chief Executive Officer of Blinkit, will take over as Group CEO. Eternal said Dhindsa will oversee day-to-day execution, while individual business units continue to operate with autonomy. Blinkit will remain Dhindsa’s primary focus, given its role as the company’s largest growth opportunity.

Market reaction to the announcements was positive. Eternal’s shares closed 4% higher on Jan 21, 2026 and are trading on 4.3% higher on Jan 22, 2026. Now is the time for the investors to see how the stock price changes.

Sources:

(Outlook Business)
(Business Standard)
(EconomicTimes)
(Mint)
(Google Finance)