**Zomato’s Parent Company Eternal Faces Challenging Q1FY26: What to Expect**
**Revenue Growth Despite Challenges**
Eternal, the parent company of popular food delivery platform Zomato, is gearing up to release its Q1FY26 financial results. While revenue is expected to surge by 57-59% year-on-year, the company’s profitability may take a hit.
**Losses in Blinkit and High Costs in Going Out Business**
The main culprits behind the expected decline in Profit After Tax (PAT) are continued losses in Blinkit, Zomato’s quick-commerce arm, and high costs associated with its Going Out business. These expenses are likely to put pressure on EBITDA margins, a key metric for measuring a company’s financial health.
**Analysts Focus on Blinkit’s Contribution and Profitability Roadmap**
As Eternal releases its Q1FY26 results, analysts will be keeping a close eye on Blinkit’s contribution to the company’s overall performance. They will also be looking for updates on store expansion plans and a clear roadmap for achieving profitability in the future.
**What This Means for Eternal and Zomato**
While Eternal’s revenue growth is a positive sign, the company needs to address the losses in Blinkit and high costs in its Going Out business to ensure sustainable profitability. As the company navigates these challenges, investors and stakeholders will be watching closely to see how Eternal plans to get back on track.
