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Eternal’s Q1 shows net order value growth across food delivery and quick commerce
Zomato’s food delivery net order value rose 20% year-on-year to ₹10,769 crore, while Blinkit’s grew 86% to ₹17,132 crore, lifting EBITDA by more than 400% year-on-year to ₹594 crore.
LiveMint Markets highlights Eternal’s June quarter results, saying competition has not slowed its core metric of net order value growth across both its food delivery and quick commerce businesses.
For Zomato’s food delivery segment, net order value increased 20% year-on-year to ₹10,769 crore. Blinkit, the quick commerce segment, saw net order value rise 86% year-on-year to ₹17,132 crore, and EBITDA jumped more than 400% year-on-year to ₹594 crore.
The article attributes the profit margin profile to ongoing investment needs and high fixed costs tied to expansion, which it says suppress EBITDA margin. It also points to Zomato’s contribution margin rising 30 basis points year-on-year to 10.2%, alongside Zomato’s take rate increasing by 321 basis points year-on-year to 32.84%, with the gap linked to higher delivery and other operating costs as minimum wages have risen in some states.
For Blinkit, LiveMint Markets reports the contribution margin fell 10 basis points sequentially to 5.3% and notes management expects near-term margin pressure to ease as competitive intensity peaks. The piece also says analysts raised concerns about Blinkit’s flattening of average order value.
It notes that management framed the tough competition as harder to sustain in quick commerce discounting than in e-commerce, and it recounts investor worries around delivery-related fees and commissions discussed elsewhere in the sector.