Eternal, the parent company of Zomato and Blinkit, has received a GST demand order worth more than Rs 128 crore from the Uttar Pradesh Tax Department. This includes tax, interest and penalty. The order has been issued for the period April 2023 to March 2024 due to less payment of output tax and higher input tax credit.
The company said that its case is strong and it will appeal against this order. In March 2025, Zomato changed its name to Eternal.
Net profit of Rs 65 crore in Q2FY26
Eternal also recently announced its September quarter results. The company’s consolidated net profit in the September quarter stood at Rs 65 crore. Quick commerce business had a big contribution behind this.
Net profit in the last quarter was Rs 176 crore. The company did not make a comparison to the previous year because during this period it acquired Orbgen Technologies and Wasteland Entertainment.
Zomato’s food delivery growth slows down
Eternal said food delivery net order value (NOV) is expected to increase gradually in the near future. There are many reasons behind this, such as softening of consumer spending, growth of quick commerce and weather instability.
In the food delivery business, around 25% of the orders were affected due to the implementation of 18% GST on delivery charges. The delivery model in Blinkit is different, so there was no impact there.
Record growth of Quick Commerce
Quick Commerce’s net order value increased by 137% to Rs 11,679 crore, the highest in the last ten quarters. Its adjusted revenue increased by 756% to Rs 9,891 crore. The GST rate cut reduced Blinkit’s average tax by about 3 percent, which is expected to increase demand.
Eternal aims to reach 2,100 stores by December 2025. Blinkit CEO Albinder Dhindsa says that 3,000 stores can be reached by March 2027.
Condition of Eternal’s shares
Shares of Eternal had closed at Rs 342.75 on Friday, down 1.47%. Before the results, the stock had made an all-time high of Rs 368.45. But, due to weaker than expected results, the stock has fallen 6.97% from the record high.
However, in the last 6 months, Eternal shares have given a return of 46.32%. The stock has gained 29.00% in the last 1 year. The market cap of Eternal is Rs 3.11 lakh crore.
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