Eternal Zomato Q1 Result: What’s Going On With the Stock?

Markets were eager to see what Eternal Zomato Q1 had to offer, and the results are finally in. The company reported a massive 90% drop in net profit for the quarter, slipping to just Rs 25 crore. On the other hand, revenue saw a healthy 70% growth, mainly driven by Blinkit’s strong performance. So, what does this mean for Zomato stock investors?

Zomato’s Profit Drop: What’s the Story?

While many expected a solid quarter, the sharp decline in profit took a lot of people by surprise. According to the Q1 report, operational costs, expansion plans, and marketing spends have taken a toll on the bottom line. But revenue growth tells a different story—Eternal’s top line grew sharply, signaling strong demand across its platforms, especially Blinkit.

Blinkit Beats Zomato in Q1

Interestingly, the quick commerce arm Blinkit has outperformed the core Zomato food delivery business. Blinkit’s order volume, delivery speed, and growing reach have helped it become a strong growth engine. This trend has caught the eye of many market watchers who believe Blinkit could be a game changer for the company in the long run.

No Dividend or Bonus – But Should You Worry?

For those waiting for a dividend or bonus announcement in this quarter, Eternal Zomato had no such update. While that may be disappointing for some, it also shows the company is likely focusing on reinvestment and long-term scaling—especially in high-growth areas like Blinkit and Hyperpure.

Stock Price Reaction and Market Cap

Despite the sharp fall in profit, Eternal’s stock price actually rose by over 7% after the results were declared. This was likely due to the strong revenue growth and upbeat outlook. As of now, Eternal’s market cap hovers above Rs 1.3 lakh crore, putting it in the spotlight as one of the more actively traded new-age tech stocks.

Is Zomato Still a Multibagger in the Making?

That’s a fair question. While Q1 profits took a hit, the company’s growth in revenue and positive investor sentiment may still point toward long-term potential. If Blinkit continues its upward trend and Zomato manages costs more efficiently, the stock could remain on the radar of long-term investors. But for now, cautious optimism is the theme.

Corporate Events and RBI’s Repo Rate Impact

Interestingly, the RBI repo rate remained unchanged during this earnings cycle, which was in line with expectations. The neutral stance gives companies like Eternal a bit of breathing space, especially when managing capital costs and expansion plans. Markets remained closed on certain days due to public holidays, but volatility was low in the lead-up to the Q1 results.

Final Take: What Should You Watch Next?

While the Q1 results raised some eyebrows, the overall business strategy seems focused on growth. Keep an eye on the next quarter’s margins, Blinkit’s expansion, and any strategic announcements. For now, Eternal Zomato remains a stock with potential—but also with some caution signals for short-term traders.

Disclaimer: This article is for informational purposes only and not investment advice. Please consult a financial advisor before making any stock-related decisions.