Eternal faces Rs 9.63 crore GST demand from Andhra Pradesh

MUMBAI: Just as Blinkit was delivering growth at record speed, a tax notice landed on Eternal’s doorstep. Eternal Ltd, the parent company of food delivery platform Zomato, has received a GST demand order worth approximately Rs 9.63 crore from Andhra Pradesh tax authorities, even as the company continues to post strong growth across its consumer businesses.

In a regulatory filing, the company said the Deputy Commissioner (ST), State Special Circle-I, Andhra Pradesh, has confirmed a GST demand of Rs 6.49 crore for the period between April 2023 and March 2024. The order also includes interest of Rs 2.50 crore and a penalty of Rs 64.87 lakh.

The demand relates to an alleged short payment of output tax during the financial year.

Eternal said it is reviewing the order and considering legal remedies, while maintaining that it has a strong case on merit.

“We believe that we have a strong case on the merits and do not expect any financial impact on the Company,” the company said in its filing.

The development comes at a time when Eternal’s operating performance continues to be driven by the rapid expansion of its quick-commerce business.

The company reported a 346.15 per cent year-on-year jump in profit after tax (PAT) to Rs 174 crore in the January-March quarter of FY26, compared with Rs 39 crore in the corresponding quarter last year.

However, the full-year picture was less buoyant. Eternal’s FY26 PAT declined to Rs 366 crore, down from Rs 527 crore in FY25, reflecting continued investments across growth businesses.

Revenue growth remained robust. Revenue from operations surged 196.4 per cent year-on-year to Rs 17,292 crore in Q4 FY26, compared with Rs 5,833 crore a year earlier. For the full fiscal year, revenue climbed to Rs 54,364 crore.

Among its business verticals, Zomato’s food delivery segment posted steady growth, with quarterly revenue rising 33.2 per cent to Rs 2,737 crore from Rs 2,054 crore a year ago. For FY26, the segment generated Rs 10,159 crore in revenue.

The star performer remained Blinkit, which continued to power Eternal’s growth engine. The quick-commerce platform reported a staggering 674.2 per cent year-on-year increase in Q4 revenue to Rs 13,232 crore. For the full year, Blinkit’s revenue soared 625.6 per cent to Rs 37,779 crore, underlining the growing importance of rapid-delivery services in the company’s portfolio.

Eternal’s going-out business, District, also delivered growth, with revenue increasing to Rs 277 crore in the fourth quarter from Rs 229 crore a year earlier.

Not all businesses moved in the same direction. B2B supplies platform Hyperpure reported a weaker quarter, with revenue declining 46.8 per cent year-on-year to Rs 978 crore.

While the GST dispute adds a regulatory wrinkle, investors are likely to focus on whether Eternal can sustain the momentum in Blinkit and food delivery, two businesses that continue to reshape the company’s growth story even as tax authorities scrutinise past filings.