Eternal’s ad spend jumps 79.85% on-year to Rs 937 crore in December quarter

New Delhi: Eternal, the food delivery and quick commerce firm that owns the Zomato and Blinkit brands, increased its advertising and sales promotion spending to Rs 937 crore in the December quarter, as it continued to push growth across its businesses.

The ad spend was up 79.85% compared to Rs 521 crore in the same quarter last year and 16.25% higher than Rs 806 crore in the September quarter.

The higher marketing outlay came in a quarter when Eternal reported a 72.88% rise in consolidated net profit to Rs 102 crore for the quarter ended December 31, 2025, compared with Rs 59 crore a year ago. Profit also grew 56.92% from Rs 65 crore in the previous quarter.

Revenue from operations surged to Rs 16,315 crore, registering a sharp 201.85% increase from Rs 5,405 crore. Compared to the September quarter, revenue rose 20.05% from Rs 13,590 crore in Q2 FY26. With other income of Rs 348 crore, total income stood at Rs 16,663 crore, up 194.56% on-year and 19.52% on a sequential basis.

However, costs remained elevated. Eternal’s total expenses climbed to Rs 16,493 crore, up 198.08% compared to Rs 5,533 crore in the year-ago quarter and 19.40% higher than Rs 13,813 crore in the previous quarter.

Apart from advertising, other key expenses also rose. Delivery and related charges were Rs 2,376 crore, up 63.86% compared to Rs 1,450 crore in the same quarter last year and 7.37% higher than Rs 2,213 crore in the September quarter.

Purchases of stock-in-trade jumped to Rs 10,076 crore, up 301.43% compared to Rs 2,510 crore a year ago and 14.57% higher than Rs 8,795 crore in the previous quarter. Employee benefits expense increased to Rs 914 crore, up 32.66% compared to Rs 689 crore in the year-ago quarter and 3.98% higher than Rs 879 crore in the September quarter.

Despite the sharp rise in spending, Eternal’s profit before tax improved to Rs 170 crore, up 37.10% compared to Rs 124 crore in the year-ago quarter and 31.78% higher than Rs 129 crore in the previous quarter.

Alongside the financial results, Eternal’s board accepted the resignation of Deepinder Goyal as Director, Managing Director and Chief Executive Officer, effective close of business hours on February 1. The board also recommended his appointment as Vice Chairman and Director for a five-year term, subject to shareholder approval.

The company said Albinder Singh Dhindsa, currently Blinkit’s CEO, will take over as Eternal’s Chief Executive Officer from February 1. In a letter to shareholders, Goyal said he has been drawn to “higher-risk exploration and experimentation”, which he believes is better pursued outside a public company like Eternal, while allowing the company to remain focused and disciplined.