Eternal, the parent company of Zomato and Blinkit, will be doubling down on its going-out vertical, District, over the next few years as it looks to increase its market share in the movies and events ticketing segment, Group CFO Akshant Goyal said during an earnings call.
“I think there are subsegments within District, like events and movies, where we have a significantly smaller market share even now compared to our competitors. For us to deliver a 30% CAGR (Compound Annual Growth Rate) over the next 3–4 years, it doesn’t necessarily mean the industry has to grow by that much. I think a lot of it can come from market share gains, and that is what we’re building into our plans,” Goyal told analysts during the December quarter (Q3 FY26) earnings call.
The District app allows users to book tickets for movies, sports, and live events, in addition to hosting the company’s dining-out offering.
In August 2024, the listed company acquired Paytm Insider for Rs 2,048 crore to expand into the movies and events ticketing segment, where it competes against the likes of Reliance-backed BookMyShow and Swiggy Scenes.
Recently, District also forayed into the beauty, fashion, and home decor segments to shore up revenues. Additionally, it has added a new Play feature within the app, which allows users to book venues to play sports such as badminton, cricket, and football, among others.
The net order value (NOV), or sales, from Eternal’s going-out business jumped 20% year-on-year (YoY) and 25% quarter-on-quarter (QoQ) to Rs 2,587 crore in Q3 FY26.
Revenue from this vertical rose 16% YoY and 59% QoQ to Rs 300 crore. This represents roughly 2% of Eternal’s overall B2C revenue.
Focus on Category Creation Within District
Despite an increase in revenue, District reported a multifold increase in its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) loss to Rs 121 crore in Q3 FY26, compared to a loss of Rs 17 crore in the year-ago quarter. Sequentially, losses grew nearly 2X from Rs 63 crore in the preceding September quarter.
In a shareholder letter, the management said the downturn was primarily due to continued investments in category creation within its going-out vertical. This includes:
- Investments in new live Intellectual Properties (IPs) in the live events business.
- Upfront investment in District Pass, both of which were over and above our ongoing investments in customer acquisition and engagement on District.
In the post-earnings call, Eternal’s Group CFO said, “We launched District Pass as a membership programme, which we initially did not plan for this quarter. A large part of the increase in losses is on account of rolling that out.”
Eternal Finds New Subscription Moat In District Pass
District Pass is a new subscription-based feature within the app and is currently priced at Rs 999 for three months. The membership comes with several benefits, including up…
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