Eternal Limited, formerly known as Zomato Limited, held its Q4 FY26 earnings conference call on April 28, 2026. Management emphasized their long-term growth strategy, projecting a 60% CAGR in their quick commerce business. Key discussions centered on market competition, continued investment in customer acquisition, and maintaining pricing discipline across their platforms while optimizing for long-term absolute dollar EBITDA growth rather than short-term margin percentages.
Strategic Growth and Market Outlook
Management confirmed that the company remains focused on its long-term objective of achieving $1 billion in EBITDA by FY29. Despite a highly competitive market, leadership reiterated their commitment to maintaining a 60% CAGR in the quick commerce sector. The strategy for this growth includes assortment expansion, geographic penetration, and increasing demand density within existing operational areas.
Quick Commerce Performance
The company maintains a positive outlook on its quick commerce segment, Blinkit. Management reported that the business continues to see strong Monthly Transacting User (MTU) additions, driven by effective marketing strategies that have resulted in a lower customer acquisition cost compared to competitors. While the company is tracking toward a 3,000 dark store target by March, they emphasized a flexible approach to store expansion based on evolving market dynamics and hyperlocal data.
Operating Principles and Monetization
During the call, management highlighted their philosophy of prioritizing absolute profit growth over short-term margin percentages. For the food delivery business, which currently operates at a 5.5% margin, the leadership team noted that any incremental revenue—such as recent hikes in platform fees—is being reinvested into growth initiatives where the company sees a high return on investment. The company remains focused on customer retention and frequency as core indicators of business health, viewing the current competitive environment as a manageable factor that has not necessitated shifts in their fundamental operating principles.
Experimentation and Future Focus
Updates on newer initiatives, such as the Bistro experiment and the District platform, underscored a disciplined approach to capital allocation. Management clarified that they have no immediate plans to emulate aggressive pricing models seen in the industry if they do not see a clear problem-solving value for consumers or restaurants. The company maintains that its focus remains on core strengths while ensuring that any future investments in automation or new verticals provide a measurable Return on Capital Employed (ROCE).
Source: BSE
