Zomato Q2 Results Preview: Profit Expected To Jump Over Fourfold, Margin Likely To Expand

Eternal Ltd., formerly known as Zomato, will report its results for the second quarter of financial year 2026 on Thursday.

Brokerages remain upbeat on Eternal ahead of its September quarter results, citing sustained strength in both food delivery and quick commerce. Most expect the company to post mid-to-high teens growth in food delivery GOV and over 130–140% year-on-year growth in Blinkit's GOV, driven by continued store expansion, festive demand, and rising user acquisition.

Citi, Kotak Institutional Equities, and Morgan Stanley highlight Blinkit’s strong momentum and improving contribution margins, aided by the shift to the 1P model. JPMorgan and Nuvama forecast steady food delivery margins, with contribution margins expanding by 20 basis points sequentially.

• Revenue seen 21% higher at 8,665 crore versus Rs 7,170 crore

• Profit seen 330% higher at Rs 108 crore versus Rs 25 crore

• Ebitda seen 105% higher at Rs 236 crore versus Rs 115 crore

• Margin seen at 2.73% versus 1.6%

• Growth momentum in Blinkit remains strong, with rising app traffic, expansion of dark stores, and entry into new cities driving market leadership.

• Citi expects Blinkit's gross order value to grow about 140% year over year in Q2 FY26, aided by festive demand and strong user acquisition.

• Food delivery growth is estimated at 18% yearoveryear, with margins slightly lower at 4.1% of GOV.

• Quick commerce segment margins are seen improving toward breakeven by the next quarter, with further expansion in FY27–28.

• Citi raised its target price to Rs 395 per share (from Rs 320 earlier), citing stronger growth visibility and margin improvement in Blinkit.

• Kotak believes Eternal is likely to post a 16% year-on-year rise in food delivery GMV and a 136% year-on-year jump in Blinkit GMV.

• Ebitda margin is expected to remain flat at 4.2% of GOV, with a 20 bps QoQ rise in contribution margin to 8.4% due to higher platform fees.

• Blinkit’s Ebitda loss seen narrowing to Rs 0.9 billion from Rs 1.6 billion in Q1, helped by higher contribution margins and lower ad spends.

• Blinkit’s store count is expected to reach 1,774, with rapid expansion continuing; commentary on competitive intensity and store targets will be key monitorables.

• Kotak retains its 'buy' rating, citing strong growth momentum in Blinkit and improving profitability trends across segments.

• Eternal is expected to post 27% quarter-on-quarter and 89.7% year-on-year revenue growth, led by sustained momentum in Blinkit.

• Food delivery gross order value is estimated to grow 4.9% QoQ and 16.5% YoY, with revenue growth of 16.5% YoY.

• Blinkit’s GOV is expected to rise 23% QoQ and 137.1% YoY, while revenue may surge 315.2% YoY due to the transition to the 1P model.

• Consolidated adjusted Ebitda margin is likely to improve 30 basis points QoQ to 2.7% on account of lower losses in Blinkit.

• Nuvama expects Eternal, along with other internet companies like Nykaa and Info Edge, to deliver healthy growth and margin improvement in Q2FY26.

• Eternal’s food delivery GOV is expected to grow 5% quarter-on-quarter and 17% year-on-year, with a 20 basis point expansion in contribution margin to 8.4% and a flat Ebitda margin at 4.2%.

• Blinkit’s (quick commerce) GOV is likely to grow 27% quarter-on-quarter, with contribution margin expanding 60 basis points to 3.6%.

• Quick commerce losses are expected to narrow to Rs 80 crore (0.5% of GOV) from Rs 160 crore (1.4% of GOV) in Q1, keeping breakeven in sight by the next quarter.

• JPMorgan remains overweight on Eternal, ranking it highest in its internet coverage pecking order.

• Eternal is expected to see 15.6% year-on-year growth in food delivery GOV, with margins remaining stable quarter-on-quarter.

• Quick commerce GOV is likely to grow 144% year-on-year, supported by strong momentum and continued expansion.

• Adjusted Ebitda losses in quick commerce are expected to narrow, with margins improving sequentially.

• The shift from the 3P to 1P model in Blinkit means focus should move toward GOV growth and contribution margins rather than adjusted revenue metrics.

• Morgan Stanley maintains a positive view on Eternal and MakeMyTrip, citing sustained growth momentum and improving profitability.