Zomato parent company, Eternal, has received a Rs 6.4 crore Goods and Services Tax (GST) demand notice from the Deputy Commissioner, State Special Circle-I, Andhra Pradesh. The tax authorities have also demanded interest of Rs 2.4 crore from Zomato and Blinkit’s parent firm.
In an exchange filing, Eternal said that the demand order has been received with respect to the short payment of output tax with interest and penalty thereon. The tax authorities have also imposed a penalty of Rs 64.8 lakh, bringing the total monetary demand to Rs 9.6 crore.
‘We have a strong case’: Eternal
The GST demand notice received by Eternal is a preliminary notice, usually issued by tax authorities to companies. Eternal has the option to challenge the demand notice before higher tax authorities and present their case.
In the exchange filing, Eternal said it believes it has a strong case on the merits. The company added that it does not expect any financial impact due to the demand notice.
Eternal Q4 revenue and profit
In Q4 FY26, Eternal reported a 346% year-on-year (YoY) jump in its net profit at Rs 174 crore, from Rs 39 crore in Q4FY25. Its revenue from operations stood at Rs 17,292 crore, up 196.45% YoY from Rs 5,833 crore in the same quarter last year.
During the March quarter, the company’s quick commerce arm, Blinkit, emerged as the biggest growth driver. Also during the quarter, the company saw a leadership transition. Founder Deepinder Goyal stepped down as CEO in February 2026. Albinder Singh Dhindsa, who leads Blinkit, took over as the new chief executive.
Eternal’s revenue for the full financial year FY26 stood at Rs 54,364 crore. Its net profit stood at Rs 366 crore. Eternal’s share price closed on Wednesday, down 2.36% at Rs 239.85 a share. In the past year, the share price has dropped about 6%, but it did touch a 52-week high of Rs 368.45.
