About the Company:

Incorporated in 2010, Zomato Limited is one of the leading online Food Service platforms in terms of the value of food sold. Its offerings include food delivery, dining-out services, Loyalty programs, and others. The Company was converted into Public Limited Company on April 9, 2021, name of the Company was changed to "Zomato Limited" and further changed to "Eternal Limited" effective from March 20, 2025.

Business segments:

Company has 4 key businesses which includes Zomato its Food delivery and flagship business, Blinkit its quick commerce business, District – its newly launched Going out business and Hyperpure – its B2B supplies business.

On segmental front Zomato, which was launched 10 years ago, currently operates in more than 800+ cities in India. Its food delivery business has registered CAGR of 30% from Fy20 to Fy24 and GOV has reached 28867Cr. in 9mFy25 marking 21% growth on YoY basis and company expects to continue this growth by 20% + YoY. It has 291000 registered restaurant partners and marked a 22% YoY growth in 9MFy25 supported by 482000 registered delivery partners and marking a 23% YoY growth. Company has recorded 63 million Annual Transacting customers in Fy24 with Average monthly transaction of 18.4 million and Annual order frequency of 11.9.

On the other end, company’s quick commerce business Blinkit is also scaling rapidly with 123% YoY growth in GOV at Rs. 18853 in 9MFy25. Company reported 9 million Average monthly transacting customers marking 94% YoY growth and its store counts has reached 1007 stores across 70+ cities. Company expects store network to reach ~2,000 stores by Dec-25 and FY26 GOV expected to grow 100%+ YoY.

The next is company’s Going out business i.e. District which is still nascent with a large, untapped opportunity ahead. Company Acquired Paytm’s entertainment ticketing business in Aug-24 and it has reported 5,611Cr. Gov in 9MFY25 along with 160% YoY growth. Company expects overall GOV to grow at 40%+ YoY for the next couple of years post FY25 with near term focus on investing in scaling across categories. It is currently operational in 800+ cities across India and UAE.

Company’s B2B supplies business Hyperpure is the problem of sourcing of high quality products for standalone restaurants and regional chains (that form bulk of the restaurant supply in India) through its end-to-end B2B supply chain for food ingredients and other product. Hyperpure operates a 1P model (i.e., owns inventory) where it sources directly from farmer producer organizations, traders and brands and supplies to restaurants and other B2B customers. It is currently present in 8 cities across India with 11 warehouses and 87,000+ unique outlets.

Overall company’s all businesses feed into each other and further enhance its core strengths.

Fundamentals:

Financial Results:

Company has reported total 53,331Crore GOV in its B2C business marking 55% YoY growth in 9MFy25 at a CAGR of 44% (Fy20 – Fy24). Its Adjusted Revenue is at Rs. 15393Cr. in 9MFy25 reporting a 59% YoY growth. Company’s Adjusted EBITDA and PAT stands at Rs. 914Cr. and 488 Cr. in 9MFy25. Improvement in profitability resulting in steady increase in cash balance with Rs. 19,235 crore cash balance at end of 9MFy25.   

Company’s Food delivery business currently generates Rs. 1,700 crore of Adjusted EBITDA on an annualized basis. Its quick commerce business is still in red lines but company is nearing to turn it into a profitable business. Improvement in profitability is largely driven by operating leverage due to higher throughput per store. Company’s District business showed 210% growth in Revenue in YoY basis in 9MFY25 period and its B2B supplies business also showed 96% YoY growth in Revenue in 9mFy25.

Company has recently launched Nugget—an AI-native, no-code customer support platform. It helps businesses scale support effortlessly—highly customizable, low-cost, no dev team needed. No rigid workflows, just seamless automation. Resolves up to 80% of queries autonomously Learns & adapts in real-time Requires zero code. Built over 3 years as an internal tool, Nugget now powers 15M+ support interactions/month for Zomato, Blinkit & Hyperpure. Company has now opened it up to businesses worldwide—90% of companies who’ve seen Nugget have already signed up.

Many global and domestic brokerages firms have given BUY and HOLD rating on Eternal Ltd. which shows high potential of growth in the company in upcoming years.

Conclusion:

Eternal Ltd, formerly known as Zomato, continues to evolve within the dynamic digital economy, transitioning from a food delivery platform to a broader consumer services ecosystem. Our fundamental analysis indicates that while the company benefits from strong brand recognition, a growing user base, and improving operational metrics, it remains in a high-growth phase marked by volatility and competitive pressure.

The company’s strategic acquisitions, expanding delivery infrastructure, and focus on profitability signal a maturing business model. However, persistent concerns around sustainable margins, regulatory risks, and the competitive intensity in the Indian tech landscape warrant cautious optimism.

In conclusion, Eternal Ltd represents a compelling long-term opportunity for investors with a high-risk tolerance and belief in the digitization of consumer services in India. Continued monitoring of financial performance, unit economics, and market execution will be essential in evaluating its true intrinsic value over time.

HET ZAVERI
info@smartinvestment.in

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