Eternal Ltd, the parent company of Zomato and Blinkit, doubled its headcount to approximately 16,375 employees in fiscal 2025, nearly doubling from the prior year, as it expanded operations across multiple verticals
What Drove the Workforce Surge?
1. Aggressive Expansion in Core Business Verticals
Eternal saw rapid scaling in its quick commerce (Blinkit) and going-out (entertainment ticketing and related services) segments. These growth areas required significant manpower across operations, customer service, and logistics
2. Integration from Acquisitions
The increase in staff also reflects the integration of personnel from newly acquired businesses in entertainment ticketing, further contributing to the total headcount jump
Employee Costs Surge Alongside Headcount
- Employee benefits expense surged by 54% year-on-year, reaching ₹2,558 crore in FY25.
- Within this, share-based payments alone rose 55% to ₹798 crore.
- Despite rising costs, the average pay declined, because a higher share of the workforce was in lower-paid operational roles. Non-managerial salaries declined by 23–26% annually
- Attrition also rose sharply, reaching 44% in FY25, up from 37% in FY24—a rise attributed to internal transfers and front-line workforce turnovers
Financial Snapshot & Operational Context
While headcount and costs soared, Eternal’s financial performance painted a mixed picture:
- Revenue from operations surged 63–70% in FY25, driven by growth in all core segments—food delivery, Hyperpure supplies, Blinkit, and going-out services
- However, profitability declined sharply—net profit dropped 90% YoY to ₹25 crore in Q1 FY26 (June quarter), compared to ₹253 crore a year earlier, reflecting margin pressure from its rapid scale-up. Similar trends were observed in Q4 FY25 with profit down 78% YoY to ₹39 crore
Why This Matters
- Operational Ambition: Growing headcount underscores Eternal’s aggressive ambition to dominate multiple consumer verticals at scale.
- Margin Trade-offs: While scaling helps capture market share, the consequent rise in operating costs and low margins pose challenges to long-term profitability.
- Comparative Scale: With ~16,400 employees, Eternal now exceeds larger consumer firms like Tata Consumer Products in workforce size, highlighting rapid expansion AInvest.
Implications for Stakeholders
| Stakeholder | Takeaway |
|---|---|
| Investors | Workforce growth signals strategic expansion but raises scrutiny over cost control and margin sustainability. |
| Employees | Opportunities and internal mobility are increasing, but attrition and lower average pay warrant attention. |
| Customers | Faster delivery and broader service offerings could improve experience, though operational efficiency remains key. |
