India’s Zomato parent, Eternal, reported a 90% year-on-year drop in net profit for Q1 FY26, down to 25 crore rupee (US$2.9 million) from 253 crore rupee (US$29.3 million).

This sharp decline came despite a 70% rise in revenue, which reached 7,167 crore rupee (US$831.3 million).

The food delivery segment saw softer demand, with net order value (NOV) up 13% and adjusted EBITDA margins improving to 5.0% from 3.9% a year ago.

Meanwhile, Blinkit, the company’s quick commerce arm, posted strong growth. NOV jumped 127% year-on-year to 9,203 crore rupee (US$1.1 billion), overtaking the food delivery business.

Blinkit added 243 new stores and reduced adjusted EBITDA losses to 162 crore rupee (US$18.8 million). Eternal aims to expand Blinkit to 2,000 stores by December 2025.