Zomato's Q1FY26 ad spend jumps 69.4% YoY to Rs. 671 crore

Eternal (formerly Zomato) announced its Q1FY26 earnings, reporting a significant rise in advertisement and promotion expenses. The company’s ad spend rose 69.4% year-on-year to Rs.671 crore, up from Rs.396 crore in Q1FY25. On a sequential basis, ad expenses grew 5.8% from Rs.634 crore in Q4FY25.

Despite the revenue growth, Eternal’s net profit declined 90.6% YoY to Rs.25 crore, compared to Rs.266 crore in the same quarter last year. The drop was primarily due to continued investments in new businesses and infrastructure.

Revenue from operations rose 70.4% YoY to Rs.7,167 crore, compared to Rs.4,206 crore in Q1FY25. On a quarter-on-quarter basis, revenue increased 22.9% from Rs.5,833 crore in Q4FY25.

Core business performance

The India food ordering and delivery segment reported revenue of Rs.2,261 crore, up 16.4% YoY from Rs.1,942 crore in Q1FY25. Hyperpure (B2B business) posted revenue of Rs.2,295 crore, up 89.3% YoY from Rs.1,212 crore. The Going-out segment, which includes dining-out and entertainment ticketing, rose 117.9% YoY to Rs.207 crore, up from Rs.95 crore in Q1FY25.

Blinkit leads growth momentum

Blinkit, Eternal’s quick commerce arm, continued to lead growth with a 154.8% YoY revenue jump to Rs.2,400 crore, compared to Rs.942 crore in Q1FY25.

The company added 243 net new stores during the quarter, expanding its footprint to 1,544 stores. Eternal plans to cross 2,000 stores by December 2025 and sees potential to reach 3,000 stores in the longer term.