Eternal Q1: District’s Revenue Jumps To INR 207 Cr

Eternal’s going-out business District saw a strong growth in the first quarter of FY26, with its revenue surging 118% to INR 207 Cr. However, the vertical’s revenue declined 10% QoQ from INR 229 Cr.

It is pertinent to note that YoY growth numbers are not comparable as Eternal acquired the entertainment ticketing business of Paytm in August last year. On a like-for-like basis, District’s revenue rose 66% YoY in Q1 FY26.

Eternal continues to be bullish on the going-out business. Notably, the company provides services like dining-out, movies, sports, concert ticketing, among others, via the District app. Last month, Eternal also launched listings of retail stores and chains on District.

Eternal CEO Deepinder Goyal, in the company’s shareholder letter, said that the going-out business is now INR 8,000 Cr annualised net order value (NOV) business, which is about 20% of the size of the company’s food delivery and quick commerce businesses. 

“In Q1FY26, we had about 2 Mn average monthly customers transacting about 2 times a month on an average with a net AOV (NAOV) of INR 1,700+,” Goyal said.

CFO Akshant Goyal sounded even more bullish on District, saying the business is generating average revenue per order of over INR 160, which is “meaningfully” higher than the food delivery and quick commerce business.

“If we execute well, this business has the potential to scale to $3 Bn in annual top line (NOV) with $150 Mn of adjusted EBITDA sometime over the next five years,” the CFO added.

However, it is pertinent to note that District reported an adjusted EBITDA loss of INR 54 Cr in the June quarter as against a loss of INR 47 Cr in the preceding March quarter and an adjusted EBITDA profit of INR 10 Cr in the year-ago quarter.

Hyperpure’s Growth To Take A Hit

Over the past few quarters, Eternal’s B2B arm Hyperpure has been seeing robust growth in its top line while simultaneously minimising its burn. The same was the story for Q1 FY26. 

In the quarter, the vertical’s operating revenue grew 89% to INR 2,295 Cr from INR 1,212 Cr in the year-ago quarter. The company also managed to trim its loss 64% YoY to INR 5 Cr. In addition, Hyperpure’s adjusted EBITDA loss shrunk 18% to INR 18 Cr from a loss of INR 22 Cr in Q1 FY25 as well as Q4 FY25.

For context, Hyperpure provides fresh ingredients and kitchen supplies to restaurants, hotels and caterers (HoReCa industry). It offers a vast catalogue of products across numerous categories, including fruits and vegetables, groceries, dairy, poultry, meats and seafood, frozen products, beverages, gourmet foods, packaging material, ready-to-cook/serve items, and kitchen essentials. 

However, Eternal expects Hyperpure’s revenue to take a hit over the next few quarters due to Blinkit transitioning to an inventory-led model from a marketplace model. “As an outcome of this transition (to owned inventory model), we will also see shrinkage in Hyperpure’s non-restaurant business as most of the B2B buyers in that business were sellers on our quick commerce platform,” Eternal CFO Akshant Goyal said. 

The CFO said this is how the company sees the upcoming quarters for Hyperpure pan out:

• Hyperpure revenue will decrease on account of scale down of non-restaurant business
• It will increase the net working capital of Blinkit while simultaneously decreasing Hyperpure’s 
• It doesn’t expect to see a change in quick commerce NOV or Hyperpure’s restaurant business revenue or profitability

The company didn’t disclose the share of the non-restaurant business in Hyperpure’s top line. 

Overall, the Zomato parent’s net profit for the first quarter of FY26 slid 90% to INR 25 Cr from INR 253 in the year-ago period. Eternal’s operating revenue jumped over 70% to INR 7,167 Cr from INR 4,206 Cr in Q1 FY25. 

Shares of Eternal ended today’s trading session 5.4% higher at INR 271.20 apiece on the BSE.