Eternal Limited Approves Q1 Financial Results and Transfers Nugget Business to Wholly Owned Subsidiary
Eternal Limited, formerly known as Zomato Limited, announced the approval of its unaudited financial results for the quarter ended June 30, 2026. The company also finalized a strategic business transfer involving the 'Nugget by Zomato' unit, transferring it to Carthero Technologies Private Limited (CTPL), a wholly owned subsidiary.The Board of Directors met on July 22, 2026, and approved several key outcomes, including the results for Q1 FY27. The company is preparing for its 16th Annual General Meeting scheduled for August 26, 2026, where shareholders will review the audited financial statements for the year ended March 31, 2026, and consider the re-appointment of Sanjeev Bikhchandani as a Non-Executive Nominee Director.
Business Restructuring and Transfer Details
The Board approved entering into a business transfer agreement (BTA) between Eternal Limited and CTPL. This transaction involves transferring the 'Nugget by Zomato' business to CTPL as part of an internal restructuring exercise designed to streamline the corporate structure. The transfer is described as a slump sale on a going concern basis.Key details regarding this transfer are:
- Consideration: CTPL will pay a cash consideration of INR 35,00,00,000/- to Eternal Limited, subject to agreed adjustments under the BTA.
- Timeline: The expected completion date for the sale is within 30 days of the agreement execution date (July 22, 2026).
- Business Contribution: For the financial year 2025-26, the Nugget Business generated INR 7.20 crore in revenue, representing 0.07% of the Company’s standalone revenue. Its net worth as of March 31, 2026, was INR 10.54 crore, or 0.03% of the company’s standalone net worth.
- Buyer Status: CTPL is a wholly owned subsidiary of Eternal Limited.
Financial Performance Summary
The Company released consolidated and standalone unaudited financial results for the quarter ended June 30, 2026. These results were subjected to limited review by Deloitte Haskins & Sells.Consolidated Results (Q Ended June 30, 2026)
| Particulars | Q End June 30, 2026 | Q End March 31, 2026 | Q End June 30, 2025 | Year End March 31, 2026 |
|---|---|---|---|---|
| Total income (I+II) | 20,586 | 17,634 | 7,521 | 55,760 |
| Total expenses | 20,314 | 17,406 | 7.433 | 55,145 |
| Profit before tax | 272 | 228 | 88 | 615 |
| Tax expense (Current + Deferred) | 157 | 76 | 79 | 319 |
| Profit for the period/year | (70) |
Standalone Results (Q Ended June 30, 2026)
| Particulars | Q End June 30, 2026 | Q End March 31, 2026 | Q End June 30, 2025 | Year End March 31, 2026 |
|---|---|---|---|---|
| Total income (1+II) | 3,951 | 3,490 | 2,818 | 12,702 |
| Total expenses | 3,171 | 2,716 | 2,137 | 9.736 |
| Profit before tax | 780 | 774 | 681 | 2,966 |
Operational and Regulatory Updates
Eternal Limited also provided updates regarding GST authorities and the changing legislative environment for gig and platform work:- GST Matters: The Company is contesting various Show Cause Notices (SCNs) and Demand Orders received from GST authorities. These include orders totaling INR 420 crore (for October 2019 to March 2022 across all states), INR 14 crore (for Andhra Pradesh, April 2022 to March 2024), and an SCN for INR 13 crore (Gujarat, April 2022 to March 2023). The company asserts it has a strong case on merits in these matters.
- Labour Codes: The Government of India notified several Labour Codes effective November 1, 2025. Based on the Company's assessment, the currently enforced provisions do not have a material impact on financial results. Similarly, while some state legislations concerning gig and platform work have been notified (including Karnataka), pending rules and regulations will be assessed for financial impact upon their notification.
ETERNAL Stock Price Movement
ETERNAL LIMITED finished trading lower today, shedding about 0.77% and settling at ₹284.40 after closing down from previous day's levels. The stock saw heavy activity during the session, with a volume of 65.94 million shares traded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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