Zomato parent firm Eternal receives over Rs 40 crore tax demand, penalty from GST department

The GST department has sent three orders to Eternal, the parent company of food delivery app Zomato. The GST authority imposed a total tax demand of more than Rs 40 crore, including interest and penalties, according to a stock market disclosure.

According to the company, the Joint Commissioner, Bengaluru, issued these directives for the period from July 2017 to March 2020.

"The Company has received 3 orders on 25 August 2025 for the period July 2017 to March 2020 passed by Joint Commissioner, Appeals-4, Bengaluru, confirming total demand of GST of Rs 17,19,11,762 with interest of Rs 21,42,14,791 and penalty of Rs 1,71,91,177," Eternal said in an exchange filing.

Eternal runs four main companies including Zomato, Blinkit, District, and Hyperpure. The company announced that it will appeal the tax demand orders.

Meanwhile, the shares of the food delivery giant were trading slightly lower during intraday trade. However, at around 12:48 PM, the stock was trading at 319.45, up 0.03 per cent.

Eternal Q1Fy26 earnings

Earlier last month, Eternal reported a massive 90 per cent year-on-year decline in consolidated net profit to Rs 25 crore for the first quarter of the current financial year, compared to Rs 253 crore in the same quarter of the previous fiscal year.

According to its stock exchange filing, Zomato's net profit decreased by 35.89 per cent on a sequential basis (month-over-month) from Rs 39 crore in the Q4 FY25.

The operator of Zomato and Blinkit reported operating revenue of Rs 7,167 crore, an increase of about 70 per cent from Rs 4,206 crore in the previous year.

In terms of profitability, consolidated Adjusted EBITDA fell 42 per cent year over year to Rs 172 crore in Q1 FY26, "primarily due to the ongoing investments in quick commerce and going-out," the company stated in a letter to shareholders.

Despite ongoing investments in new store roll-outs and seasonal factors, the margins for its quick commerce business, Blinkit, improved from -2.4 per cent of Net Order Value (NOV) in Q4 FY25 to -1.8 per cent.