The Zomato/Eternal Mindset: Part 3 – The Delivery Boy Outshines the Big Guns!

Two years ago, I wrote about “The Zomato Mindset,” where we scratched our heads over Zomato’s relentless focus on growth over profits, wondering if their optimism was a recipe for success or a risky bet. Back then, we chuckled at their ambitious Adjusted EBITDA targets and raised eyebrows at Blinkit’s strikes and Zomato Gold’s tiny subscriber base. Fast forward to Q1 FY26, and guess what? The delivery boy is now valued more than some manufacturing giants and legacy Nifty heavyweights! Let’s unpack how Zomato (ahem, Eternal in our little fictional universe) is defying gravity, soaring past companies with fatter profits, and what this says about today’s wild stock market.

Zomato’s Businesses: Still Zooming, Still HungryZomato’s playbook hasn’t changed much since 2023—it’s all about growth, baby! The company’s three main engines—Food Delivery, Blinkit, and Hyperpure—are still racing forward, each with its own flavor of chaos and promise.

• Food Delivery: This is Zomato’s bread and butter (or biryani and curry, if you will). Despite macro slowdowns we noted in 2023, food delivery remains the top revenue driver. Q1 FY26 results show resilience, with order volumes ticking up even as profitability took a slight dip. Zomato Gold, which we poked fun at for its measly 1.5% subscriber share back then, has grown steadily—now boasting ~2 million subscribers (still a small slice of their 60 million+ user base). The “On-Time Guarantee” and exclusive restaurant access are keeping users hooked, but renewals remain a question mark. Will loyal foodies keep shelling out for Gold?
• Blinkit: Oh, Blinkit, the quick-commerce star that keeps us on our toes! After the 2023 delivery partner strikes in Delhi-NCR (remember those dark store shutdowns?), Blinkit has bounced back. Q1 FY26 showed robust growth in gross order value (GOV), with Blinkit now contributing ~15% to Zomato’s revenue (up from 12.75% in 2023). The hybrid pricing model and distance-based incentives we questioned earlier seem to have stabilized operations, expanding delivery radii and network coverage. Blinkit’s dark stores are buzzing again, delivering everything from mangoes to mobile chargers in 10 minutes flat. But profitability? Still a distant dream.
• Hyperpure: This B2B arm, supplying fresh ingredients to restaurants, continues its quiet grind. It’s grown from 17.5% of revenue in 2023 to ~20% in Q1 FY26, riding the wave of India’s booming food service industry. Hyperpure’s margins are thin, but it’s a steady player, ensuring Zomato’s ecosystem stays tight-knit. Think of it as the sous-chef keeping the kitchen running.

Despite reduced profitability in Q1 FY26 (TTM profit at ₹299 Cr), Zomato’s stock price shot up post-results. Investors seem to be vibing with the growth story, shrugging off the profit dip. It’s like the market’s saying, “Who needs profits when you’ve got potential?”

Eternal’s Market Cap: The Delivery Boy Beats the Big BoysNow, let’s talk numbers that’ll make your jaw drop. Eternal’s market cap has skyrocketed to ₹3 lakh crore, leaving some Nifty giants in the dust. Check out how it stacks up against a few heavyweights (based on TTM data):

• Power Grid (₹2.76 lakh crore, Profit: ₹15,521 Cr): The electricity backbone of India, raking in profits 50x Eternal’s, yet trailing in market cap. Shocking, right?
• Tata Motors (₹2.53 lakh crore, Profit: ₹28,500 Cr): The carmaker’s roaring profits dwarf Eternal’s, but the market’s betting on delivery over manufacturing.
• Coal India (₹2.38 lakh crore, Profit: ₹35,302 Cr): Digging coal and cash, yet valued less than a company delivering pizzas and groceries.

Eternal’s ₹299 crore profit looks like pocket change next to these titans, yet its market cap tells a different story. It’s as if the stock market’s gone full Bollywood, cheering for the underdog delivery boy over the established industrial heroes!

Why the Hype? The Market’s Love Affair with “Potential”Back in 2023, we questioned Zomato’s path to profitability, doubting their Adjusted EBITDA promises. While they haven’t hit those lofty targets yet, the market doesn’t seem to care. Why? It’s the Zomato Mindset in action—investors are betting on India’s digital consumption boom. Zomato’s not just a food delivery app; it’s a tech ecosystem riding the wave of quick commerce, urban convenience, and a young, smartphone-savvy population. Blinkit’s 10-minute deliveries and Hyperpure’s supply chain muscle are futuristic bets, even if they’re bleeding cash today.Compare that to legacy players like Coal India or Power Grid. They’re profitable, stable, and… boring? The market’s giving higher multiples to tech-driven growth stories, even if profits are a distant promise. It’s like choosing a flashy startup over a steady factory—risky, but the potential payoff feels electric!

What’s Next for Eternal (and the Market)?So, where does this leave us? Eternal’s stock surge post-Q1 FY26 shows the market’s still head-over-heels for its growth story, even if profits are playing hard to get. Blinkit’s expansion, Hyperpure’s steady climb, and food delivery’s resilience keep the momentum alive. But the profitability question we raised in 2023 lingers—can Zomato turn its hustle into sustainable cash flows?
This isn’t just about Eternal. The market’s obsession with growth over profits reflects a broader trend. Tech and consumer platforms are stealing the spotlight from traditional giants, driven by India’s digital leap. It’s a reminder that valuations today are less about current earnings and more about future dreams. Are we in a bubble, or is this the new normal? Only time will tell, but for now, the delivery boy’s stealing the show!
What do you think—can Eternal keep defying gravity, or will profits eventually matter? Drop your thoughts in the comments below, and let’s keep decoding this wild market ride together!