Eternal ramps up ad spends 48% YoY in Q4 FY26

For the March quarter, revenue was up 6% quarter-on-quarter, and 196% year-on-year

by e4m Staff
Published: Apr 29, 2026 4:28 PM | 2 min read

Eternal Limited reported stable advertising expenditures in Q4 FY26 at Rs 936 crore, a slight decrease from the previous quarter but a significant increase of 47.6% year-on-year.
Revenue from operations for Q4 FY26 reached Rs 17,292 crore, up 6.0% quarter-on-quarter and 196.4% year-on-year, with total income at Rs 17,634 crore.
For FY26, total revenue rose 168.6% to Rs 54,364 crore, while net profit fell 30.5% to Rs 366 crore, indicating margin pressures despite strong revenue growth.
Quick commerce emerged as the largest revenue contributor in Q4 FY26, generating Rs 13,232 crore, reflecting a strategic shift towards this segment.

Eternal Limited, formerly known as Zomato Limited, kept its advertising and sales promotion spends largely stable on a sequential basis while significantly stepping up investments on a yearly basis in the March quarter. Advertising spends stood at Rs 936 crore in Q4 FY26, marginally down 0.1% from Rs 937 crore in the December quarter. However, on a year-on-year basis, ad spends rose sharply by 47.6% from Rs 634 crore in Q4 FY25

Q4 FY26: Growth accelerates, profits surge sequentially

For the March quarter, revenue from operations stood at Rs 17,292 crore, up 6.0% quarter-on-quarter from Rs 16,315 crore and surging 196.4% year-on-year from Rs 5,833 crore.

Total income came in at Rs 17,634 crore, rising 5.8% QoQ and 184.3% YoY.

Total expenses for the quarter increased to Rs 17,406 crore, up 5.5% QoQ and 185.2% YoY, largely driven by higher purchases of stock-in-trade, delivery-related costs, and advertising spends. Delivery and related charges stood at Rs 2,607 crore, while advertising and sales promotion expenses were at Rs 936 crore.

Profit before tax rose sharply to Rs 228 crore, up 34.1% QoQ and 135.1% YoY.

Net profit for the quarter came in at Rs 174 crore, jumping 70.6% sequentially and 346.2% year-on-year from a low base.

FY26: Scale-up continues, margins compress

For the full year FY26, revenue from operations stood at Rs 54,364 crore, marking a 168.6% increase from Rs 20,243 crore in FY25.

Total income for the year rose 161.6% to Rs 55,760 crore, while total expenses increased 167.3% to Rs 55,145 crore, reflecting continued investments in growth, logistics, and customer acquisition.

Profit before tax for FY26 declined 11.8% to Rs 615 crore from Rs 697 crore in the previous fiscal.

Net profit for the year fell 30.5% to Rs 366 crore, compared to Rs 527 crore in FY25, indicating margin pressures despite strong topline growth.

The results underscore Eternal’s aggressive scale-up strategy post its transition, with robust revenue momentum and improving sequential profitability, even as full-year earnings reflect the cost of expansion.

Segment performance: Quick commerce drives growth

Quick commerce remained the largest contributor in Q4 FY26, with revenue of Rs 13,232 crore, up 8.0% QoQ and an outsized 674.3% YoY.

India food ordering and delivery reported revenue of Rs 2,737 crore, growing 2.3% sequentially and 33.3% year-on-year.

Hyperpure (B2B supplies) declined 8.6% QoQ and 46.8% YoY to Rs 978 crore.

Going Out revenue stood at Rs 277 crore, down 7.7% QoQ but up 21.0% YoY, while other segments contributed Rs 68 crore.

Overall, the segment mix highlights a decisive pivot towards quick commerce, which now contributes the bulk of revenue.

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