Zomato-owner Eternal Q1 FY26 earnings: Ad spend jumps 69% to Rs 671 crore
Eternal Ltd's Q1 advertisement expenses increased to Rs 671 crore in Q1 FY26 compared to Rs 396 crore in Q1 FY25
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Eternal Limited (formerly known as Zomato Limited) on Monday announced its Quarter 1 results for the fiscal year 2026. The food and grocery delivery platform scaled up its consolidated advertisement and sales promotion expenditures by 69.4% in the quarter ended on June 30, 2025.
The company also reported an increase in its revenue from operation, but the profit declined both quarter-on-quarter and a year-on-year.
According to the stock exchange filing, Eternal Ltd's Q1 advertisement expenses increased to Rs 671 crore in Q1 FY26 compared to Rs 396 crore in Q1 FY25.
The revenue from operation surged to Rs 7,167 crore in Q1 FY26 compared to Rs 4,206 crore in Q1 FY25.
However, the profit in the June quarter FY26 stood at Rs 25 crore.
In the previous quarter, Eternal registered a profit of Rs 39 crore (Q4 FY25), while in Q1 FY25, the company's profit was at Rs 253 crore. The revenue of food ordering and delivery business increased by 16.4% to Rs 2,261 crore in Q1 FY26 compared to Rs 1,942 crore in Q1 FY25.
On the reduced margin, Eternal founder Deepinder Goyal said the impact was due to lower availability of delivery partners due to festivals and adverse weather conditions (onset of summer and rains in different parts of the country).
However, Goyal added, "Long term, we believe there is further scope of some margin expansion but the current focus is on ramping up investments to drive further growth in the business".
(More details awaited)
