Zomato has reported strong numbers for the second quarter of FY26, showcasing steady growth and record profit margins despite a drop in consolidated net profit at the parent level. The company’s food delivery segment continues to show resilience, supported by improved unit economics, stronger take rates, and higher customer engagement. The results reinforce Zomato’s position as one of India’s leading digital food platforms, maintaining a stronghold in an increasingly competitive delivery market.
In Q2 FY26, Zomato recorded a 14 percent year-on-year increase in Net Order Value (NOV), indicating a recovery from the slowdown observed in previous quarters. The company’s adjusted EBITDA margin reached a record 5.3 percent, resulting in over ₹500 crore in quarterly profit. This marks the highest margin achieved in Zomato’s history, reflecting improved operational efficiency and stronger monetization through higher commissions, platform fees, and advertising revenue. Despite moderate order growth, the profitability highlights Zomato’s ability to balance expansion with financial discipline.
According to Eternal’s consolidated earnings report, adjusted revenue jumped 172 percent year-on-year to ₹13,968 crore, while adjusted EBITDA rose 30 percent quarter-on-quarter to ₹224 crore. However, overall net profit fell to ₹65 crore from ₹176 crore last year, as the company continued investing heavily in its quick commerce business Blinkit and in scaling new ventures like District. The management clarified that the profit dip was largely due to higher marketing costs and fulfillment expenses, not a decline in core business strength. Zomato’s performance remains the primary driver behind Eternal’s stable financial foundation.
Deepinder Goyal, co-founder and CEO, expressed confidence in the company’s long-term trajectory. He stated that Zomato’s margins are improving faster than expected and that the business has regained positive growth momentum after bottoming out in Q1. He noted that platform take rates increased by nearly 75 basis points compared to the previous quarter, indicating more efficient monetization per order. This improvement came despite cost pressures from lower delivery fees under Zomato Gold and a rise in operational spending related to logistics and partner incentives.
Analysts note that while Zomato’s profitability is impressive, growth in order volume remains a key area to watch. The platform’s steady but modest 14 percent NOV growth suggests saturation in metro markets, though Tier-II and Tier-III cities continue to offer expansion opportunities. The company’s focus on affordability programs like Gold membership and the introduction of value-based meal options are aimed at sustaining order frequency. At the same time, investments in technology and delivery infrastructure are expected to support future scalability without eroding margins.
Zomato’s parent, Eternal, also witnessed significant performance improvements across its other verticals. Blinkit posted an impressive 137 percent NOV growth year-on-year and added 272 new stores in the quarter, bringing its total count to 1,816. District, the entertainment and experience platform, expanded operations to the UAE while maintaining 32 percent growth in India. These developments indicate a broader diversification strategy under Eternal, ensuring that each business vertical contributes to overall revenue growth even as Zomato remains the flagship brand.
The market response to the results was mixed. While investors welcomed the revenue surge, Eternal’s shares fell around 4 percent after the announcement due to concerns about profit sustainability and the high cost of expansion. Analysts remain cautiously optimistic, suggesting that Zomato’s consistent margin growth could offset short-term profitability pressures. If discretionary spending improves and Blinkit moves toward profitability, Eternal could see its net profit rebound strongly in upcoming quarters. For now, Zomato’s disciplined execution, operational efficiency, and strong brand equity continue to make it one of India’s most stable and promising consumer internet businesses.
