In a significant strategic move, Eternal Ltd (the parent company formerly known as Zomato) announced during its Q3 FY26 earnings call on January 21, 2026, that it is doubling down on its “Going-out” vertical, District.
Despite the segment’s losses widening to ₹121 crore this quarter, management remains committed to the platform, projecting it will become a $3 billion business by 2030.
1. The Financial Reality: Short-Term Pain
The “Going-out” business—which handles movie tickets, live events, and dining—saw a dip in profitability as Eternal aggressively expanded the vertical’s scope.
| Metric | Q2 FY26 | Q3 FY26 (Current) | Trend |
| Adjusted EBITDA Loss | ₹63 Crore | ₹121 Crore | ↑ 92% (Wider Loss) |
| EBITDA Margin | -2.4% | -4.7% | ↓ Margin Decline |
| Net Order Value (NOV) | ₹2,600 Cr | ₹3,120 Cr | ↑ 20% Growth |
2. Why the “Doubling Down”?
Management views District as the third major pillar of the group, following the stabilization of Food Delivery (Zomato) and the first-ever EBITDA breakeven of Quick Commerce (Blinkit) this quarter.
- Category Creation: Eternal is spending heavily on exclusive intellectual properties (IPs), food festivals, and concerts to build a “lifestyle moat” that competitors like Swiggy and BookMyShow are also eyeing.
- The “District Pass” Launch: The losses are partially attributed to the rollout of a new membership program designed to lock users into the ecosystem with discounts on movies and events.
- Diversification into Fashion: District has subtly entered the e-commerce space, adding “Retail” and “Activities” tabs featuring brands like Puma and Souled Store.
3. The $3 Billion Roadmap (FY30)
Despite current losses, Eternal reaffirmed its ambitious long-term guidance for the vertical:
- Breakeven Target: Management expects District to move toward profitability within the next 4 to 6 quarters (by mid-2027).
- Revenue Goal: A target of $3 billion in Net Order Value (NOV) by FY30.
- Margin Goal: A projected 5% Adjusted EBITDA margin once the segment matures.
4. Major Leadership Shift
The decision to double down coincides with a historic leadership change at the group level:
- Deepinder Goyal Resigns: The founder stepped down as Group CEO on January 21, 2026, to focus on health-tech and aerospace ventures. He will remain as Vice Chairman.
- Albinder Dhindsa Takes Over: The co-founder of Blinkit has been named the new Group CEO of Eternal. His immediate challenge will be to replicate Blinkit’s turnaround success with the District vertical.
Conclusion: A High-Stakes Gamble
By doubling down on District, Eternal is betting that the Indian consumer’s discretionary spending on “experiences” will follow the same explosive trajectory as quick commerce. While the ₹121 crore loss weighed on the stock price this week, the company’s strong cash reserve of ₹17,820 crore provides a massive cushion to fund this “investment mode” until the platform reaches scale in 2027.
